Integration of discrete entities, which creates a result where the integration (total) effect is greater than those of the individual entities (parts). We can term the effect as a synergy. Synergism is obtained from the Greek term ‘synergia’ which means working together.
In the natural world synergism is observed in many phenomena, in chemistry reactions with drugs, where the drugs together react in different ways to produce varied effects. In biology microbes react differently, genes combine for varied effects and even species like bees and other animals behave differently in groups.
In the context of business, synergism is seen widely in mergers and acquisitions, alliances, and joint ventures. Generally if synergistic benefits are forseen through any deal or alliance, then there are greater chances of the deal going through successfully.
Jet Airways and Etihad Airways got into a deal because of synergistic benefits such as:
- Funding for debt laden Jet
- Entry into India market for Etihad
- Better service delivery through collaborative efforts for both
Synergism is also observed in organizational behaviour, where it is the ability of a group to perform much better than its strongest individual member.