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This study describes how a multinational enterprise (MNE) gains acceptance after rebranding acquired brands from different countries among its internal and external stakeholders and identifies factors that influence this process.

The study employed a single case-study approach, including 18 semi-structured in-depth interviews with employees of a firm involved in the rebranding process in six countries. The countries are Sweden, Germany, the United States, Brazil, Colombia and Mexico.

The findings reveal how the MNE integrated brands it acquired in different international markets into one overarching corporate brand. The study shows that in emerging countries, external legitimation (external implementation process, country profiles and customer buy-in) constitutes the most significant challenge. By contrast, in developed countries, internal legitimation (employee buy-in and internal implementation process) is more challenging.

The study contributes to and extends the rebranding literature by using a legitimation lens to analyze the rebranding process. This lens shows how internal and external stakeholders are both crucial to successful rebranding. The study provides a comprehensive perspective of the process, identifies challenging factors and differentiates between their importance in emerging and developed countries.

To address the dearth of research on how firms legitimize a new brand in different national contexts, the study compares the rebranding process in multiple countries and discusses the factors influencing the rebranding process.

Through the subject of business network dynamics, this study aims to examine how business network relationships impact company entry market and development within fast growing economies as China. The paper looks at business network relationships in a fast-growing economy and provides an understanding of the relational perspectives in internationalisation of three luxury fashion companies and their entry models affected by the China context-related variables.

The methodology is following a qualitative approach, based on multiple case-studies research, proposing three cases of companies entering the Chinese market in the luxury and fashion industry.

The research analyses the local business network paths and how they affect the entry strategy through the socio-cultural and political players. The paper adds knowledge to studies in market entry and business networks, in the fast-growing economies area, with its new norms and values.

This study tries to analyse how business networks and related relationships “with Chinese characteristics” affect the market entry strategy in the internationalisation path from the perspective of the luxury fashion industry sector. In so doing it tries to provide an original further development of business network models within the new Chinese context.

This study aims to examine the effects of payment methods used in mergers and acquisitions (M&A) conducted by UK companies spanning the period from 2007 to 2019.

The study used the estimated expected returns method to identify abnormal returns during the deal announcement period, applying event study analysis with both univariate and multivariate regression models to detect cumulative abnormal returns around the announcement timeframe.

The results show a short-term positive return increase for acquiring firms, controlling for deal-specific characteristics like target firm location and payment methods. The authors observed a preference for cash financing across domestic and cross-border transactions. Multivariate analysis revealed insignificance between payment methods and deal characteristics like cross-border acquisitions and diversification.

The study’s focus on publicly traded firms in the UK and the absence of a comparative analysis across different regions and markets limits the sample size and may impact the generalizability of findings.

The study proposes three practical implications. Firstly, firms should tailor payment methods to each transaction, aligning with strategic goals to optimize value and mitigate risks. Secondly, decision-makers must prioritize comprehensive due diligence and strategic alignment throughout M&A processes to enhance success and maximize synergies. Finally, analysing broader strategic contexts and regulatory landscapes when structuring transactions enables goal attainment, such as market expansion or value creation.

The study’s findings can promote transparency and accountability among corporate decision-makers in M&A transactions. Stakeholders can advocate for transparent decision-making processes, enhancing trust in corporate governance.

This study provides valuable insights into the impact of payment methods on shareholder value in M&A transactions involving UK companies, informing strategic decision-making and contributing to the understanding of corporate finance dynamics.

While existing literature extensively explores manufacturing firms expanding into services, little is known about the modes of servitisation, the means by which they carry it out. This paper concentrates on acquisitions as a mode of servitisation. Post-acquisition integration is when the potential of an acquisition is realised. The paper therefore aims to categorise types of integrations following the acquisition of servitised firms and discusses their consequences for servitisation.

The empirical part of the paper is based on two case studies, each involving the acquisition of servitised firms. Both acquirers changed their integration approach over time.

The paper conceptualises three types of integrations: rhetorical, insulated and transformative integrations, indicating whether and how the acquirer becomes servitised following the integration. These highlight the analysis of integration based on business models and customer orientation in relation to servitisation.

This paper contributes to research on servitisation by emphasising acquisitions as a mode of servitisation and conceptualising three integration types related to business models and customer orientations. Furthermore, the paper highlights how an acquirer's servitisation leads to new offerings targeting new customers, as opposed to strengthening existing relationships.

MBA.

Master’s level in Change Management, Organizational Leadership and Human Resource Management.

Mr Sharma, the dynamic and entrepreneurial Chief Executive Officer (CEO) of the newly formed Soni Manipal Hospital (SMH), Jaipur, and Unit Head, Manipal Hospitals [Manipal Health Enterprises Pvt Ltd. (MHEPL)], in a meeting with SMH’s Head of Human Resources and the Head of the Nursing Management, Mr Yaduvanshi realised the exponential growth of employee resistance, their lack of skills and technological advancements for documentation hindering the hospital's transformation goal. The case study highlighted the challenges the protagonist faced when taking charge as the CEO after nine months of acquisition and the factors contributing to them.

Students reading this case are expected to understand leadership theories, strategic and quality management approaches, and theories of social behaviour, such as Herzberg’s two-factor theory and social exchange theory (SET) and the application of these concepts in acquired organisations to develop healthy leadership–employee relations and change management theories.

Teaching notes are available for educators only.

CSS 6: Human resource management.

After completion of the case study, the students will be able to explore the challenges involved in growing a business during its early stages inorganically, discuss the challenges faced by start-ups in their quest for growth in an emerging market, investigate the reasons behind the mergers and acquisitions, comprehend the issues in the merger of a start-up and a conventional bank, identify the various possible synergies out of the merger and examine the growth strategies that a troubled start-up such as Slice can follow to survive and expand its business operations.

The case study discusses the challenges that Slice, a modern fintech organization, and North East Small Finance Bank (NESFB) face due to the changing business and regulatory environment. After working tirelessly to earn the trust of India’s banking regulator, Slice got the approval for its merger with NESFB. While Slice and NESFB got a new lease of life after the approval of their merger, Rajan Bajaj, founder of Slice, needed to make the merger a success by leveraging on the strength of the combined entity and meeting all the lending and other regulatory requirements applicable to small finance banks.

This case study is suitable for MBA/MS/BBA/BS students.

Teaching notes are available for educators only.

CSS 11: Strategy.

Past research is mixed on family small and medium-sized enterprises’ (SMEs) use of external advisors and the limited empirical evidence is confined to developed markets. Drawing on the knowledge-based view of the firm, this research focuses on the “familiness” characteristic of SMEs and their use of external accountants as advisors in an emerging marketplace. Using internal resources for basic tasks is proposed to strengthen this relationship from a managerial cognition lens. Focusing also on SME internalization, this research probes the performance ramifications of using external accountants as advisors.

Hierarchical regression is used to test the hypotheses. The mediation hypothesis is tested by bootstrapping the indirect effect. The interaction hypothesis is visualized with simple slope analysis.

The results indicate that the familiness of SMEs is positively associated with the use of external advisors, and thereby, with high performance. SMEs with higher international exposure also use these external advisors to a greater degree. Family SMEs that have a focused use of internal resources for basic tasks benefit more from the use of external accountants for advising tasks.

This research sheds light on how family involvement in management influences firm performance, showing the moderating role of the use of internal advisors for basic tasks and the mediating role of the use of external accountants for advising. We add to the knowledge-based view by describing how family SMEs can utilize internal and external knowledge resources simultaneously.

From a firm-centric perspective, this study aims to elaborate on the types of servitisation strategies that can support a firm’s circular ambitions by asking: What is the role of servitisation in narrowing, slowing and/or closing resource loops? And, how are resources and capabilities arranged to provide such strategic circular service offerings?

Drawing on the experiences of an international manufacturing company from a dynamic capabilities perspective, the study offers an analytical framework that goes inside the firm’s operationalisation of its service offerings to support circularity in terms of the strategic decisions made. This framework is later used to frame the findings.

The study highlights the case-specific feedback loops and capabilities needed to support circular transitions. Various resource and innovation strategies for circularity are combined along customer interfaces and in partnership with upstream actors. Yet, open innovation strategies are conditioned by physical distance to provide circular services in remote areas.

The main contributions are empirical, analytical, conceptual and practical. The servitisation framework for circularity connects prior servitisation-circularity research and provides an analytical tool for framing future studies. The study also expands the definition of open innovation in that closed innovations for circularity can be achieved through “open” information exchange in knowledge networks, as well as provides advice for similar large manufacturing companies.

This study focuses on the strategic choices made by industrial firms for circular service provision and emphasises the environmental benefits from such choices, in addition to the economic and customer benefits covered in extant servitisation research.

The paper aims to analyse the construct of business model innovation (BMI) in the digital and sustainable landscape, investigating the key role of boundary strategies. The paper advances a comprehensive framework aimed at further understanding the overlap among digitalization, sustainability and BMI development, by a “boundary approach”.

The paper follows a theoretical approach based on an in-depth review of relevant literature on BMI, digitalization and sustainability as relevant megatrends and, boundary management. By critically integrating the literature, a framework is developed with the objective of supporting firms in the current transformation challenges.

The paper highlights the interplay among BMIs, megatrends and boundary management. The pressures and opportunities driven by the technological changes have made even more relevant the management of resources placed in the boundary area. Our study shows how firms can rethink their BMs in the digital and sustainable landscape by providing a boundary-based framework.

The framework offers insights and guidelines to help practitioners manage the change processes dictated by digitalization and sustainability. The authors encourage a focus on boundary resources/capabilities to increase the effective management of the digitalization and sustainability processes, to grasp the external stimuli driven by these two megatrends and to develop new/renewed BMIs.

This study emphasizes the importance of developing new BMIs in the current digital and sustainable landscape starting from the analysis of firm’s boundaries. The paper enriches the BMI literature supporting the enhancement of boundary management, leading firms to overcome challenges in the digital and sustainable landscape.

This paper aims to examine the effects of the 2014 European regulatory reform on auditors’ activity, the audit outcome and the audit market, with a focus on the Spanish market.

The research is based on in-depth, semistructured interviews with partners of the main audit firms operating in the Spanish market. This qualitative approach provides a precise identification of the cause-effect relationships of the new measures introduced by the European audit regulation.

The findings indicate that, based on auditors’ opinions, the costs of the main regulatory changes outweigh the benefits. The European Union (EU) Audit Regulation imposes more demanding provisions, such as an extended auditor’s report, mandatory audit firm rotation, more banned nonaudit services and stricter quality controls, resulting in substantial side effects on audit activity and the audit market. This could undermine the objective of enhancing the quality of audit services.

To the best of the authors’ knowledge, this is the first study to analyze the effect of the 2014 EU regulatory reform on audit activity, audit market and audit outcome based on auditors’ perceptions. The findings may be of interest to academics, professionals and regulators alike, as they offer valuable insights for assessing the effectiveness of the new audit provisions. Additionally, the qualitative methodology used facilitates a causal analysis of the key elements introduced by the regulations, potentially paving the way for future research avenues.