Information systems integration after merger and acquisition
Abstract
Purpose
The main aim of this study is to perform a case study to understand the information systems (IS) integration strategy of two high-tech companies after merger and acquisition.
Design/methodology/approach
The authors perform a case study on the mergers and acquisitions (M&A) of two high-tech companies to illustrate the IS integration activities in the M&A processes.
Findings
This study summarizes 26 fields from the IS integration process in the post-M&A period. These 26 fields highlight the challenges when standardizing the integrated system and the impacts on work routines as well as cultural resistance.
Originality/value
This study shows that the success of IS integration in the M&A context is determined by identifying critical functions and leveraging the pre-M&A know-hows of both companies. Furthermore, standardization may not be the first priority during the integration process. It is also beneficial to keep the uniqueness of the systems of both companies which reduces the concerns of potential resistance of the IT personnel. This study also has managerial implications. The findings suggest that identifying and prioritizing relevant fields in the context of a cross-business IS integration would improve the resource allocation decision and the effectiveness of post-integration evaluation.
Keywords
Acknowledgements
The authors are grateful to the review team's comments/suggestions that have improved the paper. The authors also would like to thank the financial support from National Chung Cheng University, National Dong Hwa University, and the University of Hawaii at Manoa.
Citation
Chang, S.-I., Chang, I.-C. and Wang, T. (2014), "Information systems integration after merger and acquisition", Industrial Management & Data Systems, Vol. 114 No. 1, pp. 37-52. https://doi.org/10.1108/IMDS-03-2013-0157
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited