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Book part
Publication date: 21 December 2010

Richard Schoenberg and Cliff Bowman

We propose a typology of acquisition value creation logics derived from the dynamic capability literature and explore the organisational capabilities and implementation processes…

Abstract

We propose a typology of acquisition value creation logics derived from the dynamic capability literature and explore the organisational capabilities and implementation processes required for the effective delivery of three value creation logics: governance-based, cost-based and knowledge-based. We argue that each value creation logic calls for a specific and distinct set of acquirer capabilities and post-acquisition implementation processes. We put forward a contingency approach, where effective corporate acquirers make a conscious choice as to their predominant value creation logic based on a consideration of their organisational capabilities, which, in turn, defines the characteristics of appropriate target companies and the necessary implementation actions required to realise value post-acquisition. We discuss the implications for both acquiring firm executives and future M&A research.

Details

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

Article
Publication date: 23 January 2007

Catarina Figueira, Joseph Nellis and Richard Schoenberg

The purpose of this study is to investigate the extent of bank industry consolidation across the European Union, the patterns that have emerged from the mergers and acquisitions…

3083

Abstract

Purpose

The purpose of this study is to investigate the extent of bank industry consolidation across the European Union, the patterns that have emerged from the mergers and acquisitions (M&As) and the regulatory framework that underpins these processes. It aims to identify the key challenges that have to be addressed if M&As are to expand.

Design/methodology/approach

The paper reviews the reasons that have led some financial institutions to merge, both domestically and cross‐border, and the developments that have taken place in the economic, legal and political environment. The paper presents an empirical analysis of bank industry M&As within the EU between 1993‐2004 and identifies possible explanations for the patterns of consolidation.

Findings

The analysis provides evidence that M&As predominantly take place at the national level and that two main strategies have emerged, namely the consolidation of commercial banking and the creation of universal banking groups.

Research limitations/implications

Ten countries joined the EU in 2004 and are excluded from the analysis, due to data limitations.

Practical implications

More cross‐border mergers should be encouraged if EU countries are to continue to integrate their financial markets. Moreover, if universal banking groups do not succeed in exploiting the economies of scope on which they are founded, divestment of non‐core activities may follow, thus providing acquisition opportunities for others, with the resulting more focused organisations wishing to diversify geographically, via cross‐border M&A.

Originality/value

The study suggests that the limited cross‐border M&A activity observed may be due to the existence of non‐legislative barriers, such as internal control issues raised by geographic diversity and, more specifically, the perceived cultural barriers to pan‐European operation.

Details

European Business Review, vol. 19 no. 1
Type: Research Article
ISSN: 0955-534X

Keywords

Book part
Publication date: 22 November 2012

Junichi Kato and Richard Schoenberg

We present an empirical investigation into how customers and competitors respond to merger and acquisition (M&A) activity, using data obtained from business-to-business customers…

Abstract

We present an empirical investigation into how customers and competitors respond to merger and acquisition (M&A) activity, using data obtained from business-to-business customers of logistics industry acquisitions. We draw on the M&A and marketing literatures to develop a set of hypotheses about how customer loyalty may be affected by a supplier's involvement in an acquisition, including the influence of competitors reactions. Our data confirm that customers purchase behaviours can be affected by M&A activity, both positively and negatively, and we find support for a causal chain whereby post-acquisition integration actions cause changes in key customer relationship variables, which in turn drive changes in customer loyalty. Our results also provide empirical evidence of the significant role that competitors responses can play in reducing customer loyalty following an acquisition. We identify a number of factors that appear to influence the magnitude of competitors reactions, namely the scale and scope of the acquisition, the form of post-acquisition integration pursued and the ‘stickiness’ of existing customers. The implications of our findings for future research, as well as for executives engaged in M&A activity, are discussed.

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-78190-460-2

Keywords

Article
Publication date: 26 April 2013

Richard Schoenberg, Nardine Collier and Cliff Bowman

Against a backdrop of continued weak economic conditions and with many firms experiencing declining financial performance, this paper presents a synthesis of the business…

5703

Abstract

Purpose

Against a backdrop of continued weak economic conditions and with many firms experiencing declining financial performance, this paper presents a synthesis of the business turnaround literature. It aims to identify which turnaround and recovery strategies have been effective historically, based on the evidence provided by previous empirical research.

Design/methodology/approach

The authors review literature that includes 22 empirical studies, which investigated business turnarounds in previous recessionary environments. This literature was reviewed in its entirety, rather than as individual contributions, to synthesise the lessons available for businesses operating in today's challenging economic environment.

Findings

The literature review revealed convergence in the findings of the prior studies. In total, six effective turnaround strategies were consistently identified and four of these relate to the content of the turnaround, namely: cost efficiencies, asset retrenchment, a focus on the firm's core activities and building for the future and two relate to accompanying change processes required for implementation: reinvigoration of firm leadership and culture change.

Research limitations/implications

The authors highlight areas where knowledge on business turnarounds remains limited and suggest potentially fruitful directions for future research.

Practical implications

The authors discuss the elements involved in each of the six effective turnaround strategies identified. The authors also provide a contemporary example to illustrate the application of these strategies in the current economic environment.

Originality/value

The paper offers practitioners an evidence‐based view on effective business turnaround and recovery strategies, in addition to providing researchers with an accessible review of the existing literature.

Details

European Business Review, vol. 25 no. 3
Type: Research Article
ISSN: 0955-534X

Keywords

Book part
Publication date: 1 January 2000

Richard Schoenberg

This chapter synthesises theoretical and empirical perspectives on cultural compatibility within cross-border acquisitions, drawing on both the organisational and national culture…

Abstract

This chapter synthesises theoretical and empirical perspectives on cultural compatibility within cross-border acquisitions, drawing on both the organisational and national culture streams of acquisitions literature. The impact of cultural compatibility on subsequent acquisition performance is seen to revolve around the form of post-acquisition integration and the relative attractiveness of the acquirer's culture. For the latter, there is some evidence that attitudes towards participation, formality and risk may have a particular importance, although the relative influence between organisational and national culture remains unclear. Avenues for future research are indicated.

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-84950-061-6

Book part
Publication date: 6 May 2004

Richard Schoenberg

This paper examines how differences in management styles impact the performance of cross-border acquisitions. Two principal findings are reported. First, the study focuses on the…

Abstract

This paper examines how differences in management styles impact the performance of cross-border acquisitions. Two principal findings are reported. First, the study focuses on the individual dimensions of management style and highlights the particular influence that differences in risk orientation exert on acquisition outcome. This result, although unexpected, is argued to be consistent with prior literature that places risk orientation in a central role within organisational behaviour. Second, the relationship between management style compatibility and cross-border acquisition performance is found to be contingent upon the level of organisational interaction imposed by the post-acquisition process. Implications are drawn for both researchers and practitioners.

Details

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

Book part
Publication date: 1 January 2000

Abstract

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-84950-061-6

Book part
Publication date: 6 May 2004

Abstract

Details

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

Content available
Book part
Publication date: 21 December 2010

Abstract

Details

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

Book part
Publication date: 6 May 2004

Abstract

Details

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

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