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1 – 10 of over 57000This study concerns two aspects of the integration process critical for the success of acquisitions: (1) levels of human integration and task integration and (2) speeds of human…
Abstract
Purpose
This study concerns two aspects of the integration process critical for the success of acquisitions: (1) levels of human integration and task integration and (2) speeds of human integration and task integration. The purpose of this study is to examine the interaction effects of human/task integration level and human integration speed advantage on acquisition performance.
Design/methodology/approach
This study collected data of companies in the Taiwanese high-tech industries at the financial, organizational and industrial levels to examine the proposed hypotheses. Corporate financial and patent data were collected from the Taiwan Securities and Futures Commission databases and the Intellectual Property Office (IPO) databases. The organizational level data were collected from 142 publicly traded related acquisitions from 2008 to 2009 in the Taiwanese high-tech industries.
Findings
The results show that (1) a high level of human integration positively affects technological performance; (2) the interaction term of human integration level and human integration speed advantage (i.e., relatively faster human integration coupled with slower task integration) positively affects technological performance; and (3) the interaction term of task integration level and human integration speed advantage positively affects technological performance.
Originality/value
The originality of this study lies in advancing our understanding of how complex interactions between human/task integration level and human integration speed advantage affect acquisition performance.
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The purpose of this paper is to report a study of post-integration mechanisms carried out by five multinational mergers and acquisitions (M & A) transactions taken place in…
Abstract
Purpose
The purpose of this paper is to report a study of post-integration mechanisms carried out by five multinational mergers and acquisitions (M & A) transactions taken place in Indian context. This study has been woven around the concept of human integration and task integration as separate objectives of acquiring organizations to be achieved.
Design/methodology/approach
This study is based on descriptive research design. Qualitative data were collected, where the managers from the acquiring organizations and employees from the acquired firms have taken part in the data collection process through interviews. Interview schedule was developed for managers consisting questions on organizations’ strategy to achieve success post-M & A integration (PMI), while interview schedule developed for employees investigated their reactions after organizational change.
Findings
Results revealed that the organizations where human integration mechanisms were given due credence also harbored highly committed employees from their organizational counterparts, whereas the transactions where task integration objective was given preference while ignoring human integration, employees developed the negative emotions of anger and insecurity for their newly merged firm.
Research limitations/implications
The M & A literature observes a huge gap in the field of M & As in India, especially in PMI mechanisms worldwide, as the emphasis has always been on financial and operational aspects of M & As. Thus, this study addresses this gap in research and opens the avenues for M & A researchers to consider HR as the strategic partner during M & As.
Practical implications
The study has important implications for MNCs operating in India and for those which want to excel the Indian market through M & A.
Originality/value
This paper is based on the original field work and every information given is authentic.
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Xiaosong Jason Wu, Randi Jiang, Jacob Chia-An Tsai and Gary Klein
An enterprise system (ES) implementation proceeds as a multi-team system (MTS), with multiple project teams spanning time and business functions to meet organization-wide goals…
Abstract
Purpose
An enterprise system (ES) implementation proceeds as a multi-team system (MTS), with multiple project teams spanning time and business functions to meet organization-wide goals. Thus, the focus shifts from the output of a single project team to the outcomes of all ES project teams as part of the larger MTS. This study extends concepts of shared mental models (SMMs) in aspects of goals and plans in both MTS level and project team level and further examines SMMs' interactive impact on the MTS-based project performance.
Design/methodology/approach
This study tests the model with survey data from 140 MTS-based ES implementations in China. Partial Least Squares Structural Equation Modeling (PLS SEM) served to test the hypothesized relationships.
Findings
SMMs of project team-level goals and plans contribute to the cooperation and coordination in the ES implementation and thereby improve final implementation efficiency either directly or in combination. However, SMMs of MTS-level goal and plans contribute integration only when considered with achievements at the project level.
Originality/value
Prior literature suggests a critical role of integration among ES project teams but finds challenges in achieving such integration. By leveraging shared mental model theory, the authors' results show that both common goal and plan understandings in the integration team critically influence integration in ES implementation and, thus, the final ES implementation efficiency, though not in a strictly linear relationship.
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Achieving a highly satisfied and committed workforce, during post-merger integration (PMI), has made employees’ perceived organizational justice a vital construct in the mergers…
Abstract
Purpose
Achieving a highly satisfied and committed workforce, during post-merger integration (PMI), has made employees’ perceived organizational justice a vital construct in the mergers and acquisitions (M&A) research. For example, employee attitudes like satisfaction and commitment influence overall M&A outcomes, but employee responses primarily depend on their perceptions of justice for the merged organization. Hence, the purpose of this paper is to investigate the cause and effect of employees’ perceptions of justice during M&A.
Design/methodology/approach
This research used a mixed-methods research design (qual and quan). The quantitative investigation of 207 M&A survivors from 3 M&A deals examined the relationship between perceived organizational justice (three dimensions) with employees’ level of affective commitment and satisfaction during PMI. The multivariate analysis was performed to analyze this data. A thorough thematic content analysis of the in-depth interviews of ten M&A experts and strategists helped to develop a detailed theoretical model of justice during M&A.
Findings
The resultant model highlighted the three antecedents of perceptions of justice, i.e. human integration, cultural integration and task integration, which together explained the employees’ perception of justice during M&A. Perception of justice was further found to influence employees’ psychological outcomes and overall synergy realization.
Originality/value
The current study adds to the literature by providing a holistic understanding of the justice phenomenon during M&A by focusing on its antecedents and outcomes, and thus, proposes a detailed framework. The current study also emphasizes on the relative importance of procedural and interactional justice over distributive justice in determining employee attitudes toward change.
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Florian Bauer, Julia Hautz and Kurt Matzler
The purpose of this paper is to detect and challenge generally accepted management and consulting practice in Mergers & Acquisitions (M&As). M&As have been an important issue in…
Abstract
Purpose
The purpose of this paper is to detect and challenge generally accepted management and consulting practice in Mergers & Acquisitions (M&As). M&As have been an important issue in strategic management and corporate development for decades. The integration process of two separate entities has been found to be of importance, and has, accordingly, received a significant amount of attention by research, management and consulting literature. Based on these insights, managers tend to rely on well-established and generally accepted rules developed by practice and consultants that should support a successful integration process and the generation of value. Nonetheless, M&As’ efforts still often fail to create value. So is the common practice of the established drivers and beneficial consequences of the integration of M&As right, or do the experiences of consultants, companies and managers reveal something different?
Design/methodology/approach
To understand these challenges, the authors spent four years studying M&A projects and subsequent integration processes of more than 400 companies that engaged in M&A efforts. The data derived from four survey-based quantitative studies among more than 430 CEOs, CFOs and other senior managers in the field of M&As and personal interviews that were conducted to get in-depth insights.
Findings
This extensive research on the efforts and projects of M&As over many years and including many companies reveals that successful integration processes are complex, social and culturally dependent endeavors and that the application of commonly accepted and established principles oversimplifies and disregards the interdependencies.
Originality/value
The present paper unveils four established principles concerning the successful integration after M&As as tenacious myths and provides more differentiated insights into value-destroying and value-creating mechanisms in M&As.
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Athina Vasilaki and Nicholas O'Regan
The purpose of this paper is to address the link between the effectiveness of the top management team (TMT) and post‐acquisition organisational performance.
Abstract
Purpose
The purpose of this paper is to address the link between the effectiveness of the top management team (TMT) and post‐acquisition organisational performance.
Design/methodology/approach
The paper undertakes a literature review, identifies four streams of research regarding TMT effectiveness and explores the role of TMT in the post‐acquisition integration process.
Findings
The paper identified the characteristics of an effective TMT in the post‐acquisition integration context. It pointed to the fact that, if TMTs effectively utilise the resources, effectively manage group processes and demonstrate high levels of group task leadership as well as personal integration to the task, then it will lead to an effective decision‐making process, demonstrate vision and be able to exert influence and commitment to the goal from their subordinates.
Practical implications
The paper can be used by managers to help them identify the critical factors that contribute to the success of an acquisition.
Originality/value
The paper addresses the literature on TMT effectiveness, applies it to the M&A context and proposes a way of examining this relationship.
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Eva‐Maria Kern and Wolfgang Kersten
The purpose of this article is to introduce a framework for internet supported inter‐organizational product development, which enables companies to efficiently configure their…
Abstract
Purpose
The purpose of this article is to introduce a framework for internet supported inter‐organizational product development, which enables companies to efficiently configure their development processes according to their needs.
Design/methodology/approach
Three ideal types of partner integration are identified and specific design guidelines for each type are proposed. Current approaches for product development collaboration are analysed. Based on their shortcomings the main approach of this paper evolves. Additionally the main results of interviews with experts are used to develop and introduce a framework which has been tested partially in the shipbuilding industry.
Findings
The paper identifies three types of partner integration and proposes specific design guidelines.
Research limitations/implications
The framework introduced in this paper provides guidance for future research in the area of product development collaboration.
Practical implications
The framework further supports managers in designing efficient and effective inter‐organizational product development collaboration by choosing the appropriate level of partner integration.
Originality/value
The paper presents a practical and usable framework for internet supported inter‐organizational product development collaboration. The main focus is on designing the partnership interaction.
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Aihie Osarenkhoe and Akmal Hyder
A review of extant literatures shows that most mergers fail during the integration process. Little is known about how the realization of operating synergies and dissemination of…
Abstract
Purpose
A review of extant literatures shows that most mergers fail during the integration process. Little is known about how the realization of operating synergies and dissemination of available know-how in the merged firm are managed in the post-merger phase. The purpose of this paper is to provide insights on the process of integrating operating synergies by focusing on the critical success factors that facilitate integration of the skills of merged banks.
Design/methodology/approach
The authors draw on three research traditions in merger literature and reconcile them with three dimensions of integration. In-depth interviews were conducted with Nordea managers from four Nordic countries.
Findings
Having learned from the mistakes of previous mergers, Nordea’s “guiding star” for managing its post-merger integration process was expressed as focus, speed and performance from top management. A hands-on leadership style, vision-led thinking, a bias for action, involvement of the entire staff, continuous focus on customers, open and honest communication with employees are critical to success.
Practical implications
The motive for a merger has an important impact on the degree of interaction and degree of integration. The authors expand on previous findings by, among other things, synthesizing three theoretical lenses into an integrative model, and addresses post-merger issues with a sharp eye towards clear managerial relevance.
Originality/value
The authors respond to the call to expand inter-firm relationships study beyond the narrow dyadic relationship focus and not solely conceptualize mergers as one of companies’ entry modes to implement mechanistic growth strategy. The three dimensions of integration imbued with three research traditions in merger literature provides us with a conceptual lens to conceive mergers also as engines for change emerging from the merged firms to enhance a bespoke performance of their business process.
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The purpose of this paper is to unpack the black box of post-merger and acquisition (M&A) integration of reverse M&A by Chinese multinational enterprises (MNEs).
Abstract
Purpose
The purpose of this paper is to unpack the black box of post-merger and acquisition (M&A) integration of reverse M&A by Chinese multinational enterprises (MNEs).
Design/methodology/approach
This research adopts multiple cases of Chinese reverse M&A. Data are collected using the approaches of in-depth interviews, storytelling and narratives.
Findings
This research identifies various antecedents underlying Chinese post-M&A integration, such as asymmetries in resources, capabilities, vision and status between Chinese MNEs and acquired firms. The post-M&A integration process of Chinese reverse M&A consists of a top-down effortless integration initiated by Chinese MNEs with both benefits and problems, and a bottom-up reverse integration conducted by acquired firms.
Originality/value
By linking the pre-M&A phase and the post-M&A phase, this research builds a new model of post-M&A integration of Chinese reverse M&A from an indigenous Wu Wei paradigm. The new model counterpoises extant literature, shifting from the task and efficiency-focussed view to the people and harmony-focussed view.
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Markus C. Becker and Francesco Zirpoli
The paper analyses the organization of the new product development process at FIAT from a resource‐based perspective. The focus is on organizational resources for integrating…
Abstract
The paper analyses the organization of the new product development process at FIAT from a resource‐based perspective. The focus is on organizational resources for integrating dispersed specialist knowledge required in the development of complex products. The analysis shows how the application of a resource‐based perspective is able to uncover negative long‐term effects of outsourcing on the knowledge base (hollowing out), despite beneficial short‐term effects on cost.
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