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Quality management challenges in a dynamic reality of mergers, acquisitions and global expansion

Aviva Bashan (The School of Industrial Engineering and Management, Afeka Tel Aviv Academic College of Engineering, Tel Aviv, Israel)
Deganit Armon (The School of Software Engineering, Afeka Tel Aviv Academic College of Engineering, Tel Aviv, Israel)

International Journal of Quality & Reliability Management

ISSN: 0265-671X

Article publication date: 5 August 2019

Abstract

Purpose

The purpose of this paper is to highlight the challenges facing the quality management system (QMS) of parent and subsidiary companies within the dynamics of multinational mergers, acquisitions and strategic partnerships, and to present guidelines for developing a global quality strategy.

Design/methodology/approach

The quality systems of 18 multinational companies at different stages of mergers and acquisitions (M&A) processes and different global expansion levels were studied in depth using observations, content analyses and interviews with CEOs and operational and quality managers in parent or subsidiary companies.

Findings

As part of the M&A process, not enough consideration is given to the functional aspects and challenges facing the QMS of subsidiaries, and to the integration of the subsidiary QMS into the corporate QMS. The findings highlight the strategic role of the parent company in creating a corporate QMS and developing a corresponding global quality strategy.

Practical implications

The classification of the challenges facing the parent and subsidiary QMS forms a diagnostic tool that supports a functional preparedness for integrating quality systems, while addressing their local needs, integrating them into the global activity of the system, and utilizing the growing integrative array of resources and capabilities to achieve global value.

Originality/value

While M&A is perceived as a strategic topic, it has direct impact on the QMS. This study outlines a necessary conjoining of quality management and strategy, which is the key to global quality management.

Keywords

Citation

Bashan, A. and Armon, D. (2019), "Quality management challenges in a dynamic reality of mergers, acquisitions and global expansion", International Journal of Quality & Reliability Management, Vol. 36 No. 7, pp. 1192-1211. https://doi.org/10.1108/IJQRM-06-2018-0161

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited