Strategic framework for brand integration in horizontal mergers and acquisitions

Abstract

Purpose

The paper aims to provide both academics and practitioners a strategic framework for integrating brands in horizontal mergers and acquisitions (M&As) in order to create and deliver value.

Design/methodology/approach

A conceptual framework developed from a review of the existing literature and pilot case studies.

Findings

The paper first discusses the importance of brand integration for value creation in horizontal M&As from a practical perspective. The paper then reviews three related bodies of existing literature that are critical to this research – M&As, product and brand management, integration approach. This review leads to the identification of the research gap in the area of brand integration in M&As. The paper then develops and proposes a strategic framework for integrating brands in horizontal M&As based on the pilot case studies and existing literature.

Originality/value

The paper structures and classifies the fragmented existing literature in the domain of product and brand management into four major views – customer (market) perspectives, supply (manufacturing) concerns, product development (innovation and technology) considerations and value creation. This classification can be a useful approach for future research in reviewing the diversified product and brand management literature. The strategic framework developed here consolidates the four perspectives of product and brand management and the two views of strategic management (positioning and resource‐based) and presents four major strategies and a process for the successful integration of brands in post‐horizontal M&As. The paper also provides an overview of overseas M&A activities on the part of Chinese companies in terms of trend and motives and considers some implications of the brand integration strategic framework for Chinese companies when they acquire international brands. Future research priorities are also discussed and research methods recommended.

Citation

Anh Vũ, D., Shi, Y. and Hanby, T. (2009), "Strategic framework for brand integration in horizontal mergers and acquisitions", Journal of Technology Management in China, Vol. 4 No. 1, pp. 26-52. https://doi.org/10.1108/17468770910942825