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Article
Publication date: 1 February 1991

Philippe C. Haspeslagh and David B. Jemison

Better management of the pre‐acquisition decision‐making and the post‐acquisition integration processes can improve an acquisition's potential to contribute to strategic renewal.

2396

Abstract

Better management of the pre‐acquisition decision‐making and the post‐acquisition integration processes can improve an acquisition's potential to contribute to strategic renewal.

Details

Planning Review, vol. 19 no. 2
Type: Research Article
ISSN: 0094-064X

Article
Publication date: 1 June 1997

Pierre Barthon and Brian Jepsen

There has been a steady increase in the amount of research and theorising in the area of interorganisational research, especially with regard to buyer‐seller arrangements…

214

Abstract

There has been a steady increase in the amount of research and theorising in the area of interorganisational research, especially with regard to buyer‐seller arrangements in marketing channels (Andersen and Narus 1990, Bergen et.al., 1992, Boyle et.al., 1992). Alternative interorganisational governance models, such as joint ventures, strategic alliances, and sole‐sourcing are the reality of modern business management (Borys and Jemison 1989, Buckley and Casson 1988), and so interfirm governance has become a strategic management issue. The much‐cited work of Porter (1985, 1991) has focused on the optimal linkage of interfirm activities, and regards the planning and governance of interfirm relations as an important competitive strategic issue, a point reiterated by Heide (1994). The issue of channel relationships has been one of concern for both practitioners and academics, and theories such as those of transaction cost analysis (TCA), agency theory, and relational norms have on the one hand shed much light on the problems, and on the other provided a fruitful backdrop to much empirical research. Less attention has been given to the effects of time on these notions, both in the literature and in empirical research. In this article we provide an overview of the theories, and attempt an integration. The purpose of this article is to focus on transaction cost economics (TCE) and relational exchange theory to provide an overview of the areas of interorganisational research where relationships play a role. A number of areas where the theories diverge and converge are outlined. More importantly, we endeavour to bring the effects of time into consideration, and to develop propositions for further research.

Details

Management Research News, vol. 20 no. 6
Type: Research Article
ISSN: 0140-9174

Book part
Publication date: 6 May 2004

Duncan Angwin

Managing Executives occupy a pivotal role in the acquisition process. It is virtually inconceivable that major Merger and Acquisitions (M&As) could proceed without their…

Abstract

Managing Executives occupy a pivotal role in the acquisition process. It is virtually inconceivable that major Merger and Acquisitions (M&As) could proceed without their personal sponsorship (Hayward & Hambrick, 1997). They are central to the negotiation and signing for such deals and it is these negotiations that raise questions over how the target company should be run post-acquisition, how it should be configured to fit within the newly expanded group and what sort of strategy may be appropriate for the future. Managing Executives embody their firm’s strategies and so are intimately connected with these issues of organisational fit and strategic rational. With negotiations focussed upon the future of their businesses and their personal places in corporate history, these contests can be very dramatic. The high stakes are evident in the substantial levels of acquired Managing Executive departure post-acquisition. Whilst we can observe that many acquired Managing Executives subsequently leave the enlarged firm, little evidence to date answers the question of why they have been retained or replaced?

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-84950-264-1

Article
Publication date: 1 April 1992

Yaakov Weber and David M. Schweiger

This paper proposes an anthropology‐based theoretical model describing the impact of top management culture clash on the commitment of the acquired team to the new…

3295

Abstract

This paper proposes an anthropology‐based theoretical model describing the impact of top management culture clash on the commitment of the acquired team to the new organization and on its cooperation with the acquiring team. It suggests that three factors are influential, namely the degree of cultural differences, the nature of the contact between the teams, and the intended level of integration between the companies. The paper generates numerous propositions for predicting the impact of the culture clash. It also offers suggestions for further theoretical and empirical study, and presents some of the model's practical implications.

Details

International Journal of Conflict Management, vol. 3 no. 4
Type: Research Article
ISSN: 1044-4068

Book part
Publication date: 13 October 2016

Florian Bauer, Svante Schriber, David R. King and Borislav Uzelac

Acquisition integration is important to realize synergies and to achieve acquisition success. However, there is a lack of clarity on pertinent integration approaches…

Abstract

Acquisition integration is important to realize synergies and to achieve acquisition success. However, there is a lack of clarity on pertinent integration approaches suggesting that integration is more complex and dynamic than traditionally assumed. In this chapter, we shed light on ambiguous cause effect relationships by investigating the effect of integration related decisions on intermediate goals. Additionally, we argue that entrepreneurial integration skills, or proactivity under ambiguity, are needed to keep pace with the dynamism inherent in acquisition integration. Based on primary data on 116 acquisitions, we find that entrepreneurial integration skills can display both advantages and disadvantages. While it helps to realize expected and serendipitous synergies, it can also trigger employee uncertainty due to decreased transparency. In supplementary analysis, we show measures to outperform with various integration approaches. Implications for management research and practice are identified.

Details

Mergers and Acquisitions, Entrepreneurship and Innovation
Type: Book
ISBN: 978-1-78635-371-9

Keywords

Book part
Publication date: 26 August 2014

Daniel Rottig, Taco H. Reus and Shlomo Y. Tarba

This chapter aims to make sense of the growing research that examines the role of culture in mergers and acquisitions. We provide a detailed review of the many related but…

Abstract

This chapter aims to make sense of the growing research that examines the role of culture in mergers and acquisitions. We provide a detailed review of the many related but distinct constructs that have been introduced to the literature. While each construct has contributed to our understanding of the role of culture, the lack of connections made among constructs has limited the consolidation of contributions. The review shows what these constructs mean for mergers and acquisitions, what major findings have been discovered, and, most importantly, how constructs interrelate. Our discussion provides several opportunities to foster the needed consolidation of this research.

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-78190-836-5

Keywords

Book part
Publication date: 19 September 2014

Satu Teerikangas and Tomi Laamanen

While there is an increasing understanding of the challenges that can emerge in integration processes of cross-border mergers and acquisitions, there is a scarcity of…

Abstract

While there is an increasing understanding of the challenges that can emerge in integration processes of cross-border mergers and acquisitions, there is a scarcity of research on how the different integrative activities should be temporally sequenced. Based on an in-depth analysis of three acquisitions, we find that structural and cultural integration are intertwined. We find that cultural integration will begin only once structural integration is in progress. Cultural differences can, however, impede structural integration if structural integration is done in conflict with the existing culture of the acquired company. Thus, structural integration should come first, but it should be done in appreciation with the acquired company’s existing culture. Cultural change is then facilitated in an iterative manner over time by the new structure. Our chapter contributes to an improved understanding of the temporal dynamics of integration by demonstrating the mutually reinforcing effects of structural and cultural integration in cross-border acquisitions.

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-78350-970-6

Keywords

Book part
Publication date: 15 June 2018

Katsuhiko Shimizu and Daisuke Uchida

In the rapidly changing and globalizing environment, mergers and acquisitions (M&As) have become increasingly important. In this study, we paid specific attention to the…

Abstract

In the rapidly changing and globalizing environment, mergers and acquisitions (M&As) have become increasingly important. In this study, we paid specific attention to the voluntary announcements of M&A budgets by Japanese firms. We discussed the antecedents and consequences of such announcements by incorporating the context of Japan, which has experienced an enduring economic downturn since 1990 and is in the process of adopting a Western style of governance. Drawing on signaling theory and impression management theory, this exploratory study intended to contribute to the literature by incorporating the influence of the social context and by arguing for the possibility that announcements of M&A budgets may be used not only for strategic purposes but also for impression management and to reduce information asymmetry.

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-78756-136-6

Keywords

Article
Publication date: 1 February 1981

David Jemison and Robert Oakley

Mutual insurance companies will have to reform their corporate governance practices if they want to avoid new and excessive government regulation. Steps they can take…

Abstract

Mutual insurance companies will have to reform their corporate governance practices if they want to avoid new and excessive government regulation. Steps they can take include: changes in board structure and composition, the addition of several committees, more open communication with policyholders, and greater involvement of the board in setting strategy.

Details

Journal of Business Strategy, vol. 2 no. 1
Type: Research Article
ISSN: 0275-6668

Book part
Publication date: 21 December 2010

Günter K. Stahl and Sim B. Sitkin

Drawing on the trust literature and research on sociocultural integration in mergers and acquisitions (M&As), we develop a model of the antecedents and consequences of…

Abstract

Drawing on the trust literature and research on sociocultural integration in mergers and acquisitions (M&As), we develop a model of the antecedents and consequences of trust dynamics in acquisitions. The model proposes that target firm members’ perceptions of the acquiring firm management's trustworthiness are affected by the relationship history of the firms, the interfirm distance, and the integration approach taken by the acquirer. Ability, benevolence, integrity, and value congruence perceptions are proposed to converge into a generalized trust judgment or result in a state of ambivalence, depending on whether the trustworthiness attributions are consistent or conflicting. The model explains the mechanisms by which trust and ambivalence may affect a variety of attitudinal and behavioral outcomes. A number of testable propositions are derived from this model, and the implications for M&A research and practice are discussed.

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-0-85724-465-9

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