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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 research on…

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

Article
Publication date: 2 October 2023

Benjamin Asare, Dorcas Nuertey and Emmanuel Poku

Innovation has become extremely important, especially concerning manufacturing firms, as it is known to foster robust and healthy competition. The study aims to examine the effect…

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Abstract

Purpose

Innovation has become extremely important, especially concerning manufacturing firms, as it is known to foster robust and healthy competition. The study aims to examine the effect of innovation orientation and supply chain integration on structural flexibility and strategic business performance.

Design/methodology/approach

Using the quantitative approach, 315 questionnaires were distributed to manufacturing firms in three cities (Accra, Kumasi and Takoradi) in Ghana out of which 305 usable responses were retrieved. The partial least square structural equation modeling technique and the statistical package for social sciences software version 27 were used for the data analysis.

Findings

The findings showed that supply chain integration and innovation orientation have a strong beneficial association. A substantial favorable association between structural flexibility and supply chain integration was found in the study once more. What is more, the research revealed a strong positive relationship between supply chain integration and strategic business performance. Furthermore, the study found a strong relation between innovation orientation and strategic business performance.

Originality/value

The research paper adds to the body of knowledge by examining how supply chain integration affects the relationship between innovation orientation, structural flexibility and strategic business performance.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 6 May 2014

Biao Sun and Yi-Ju Lo

The purpose of this paper is to define co-exploitation, co-exploration, and alliance ambidexterity from the perspective of organizational learning; to analyze how knowledge bases…

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Abstract

Purpose

The purpose of this paper is to define co-exploitation, co-exploration, and alliance ambidexterity from the perspective of organizational learning; to analyze how knowledge bases, structural arrangements, and control mechanisms of R&D alliances influence co-exploitation and co-exploration; and to discuss how to achieve alliance ambidexterity by managing paradoxes around knowledge bases, structural arrangements, and control mechanisms.

Design/methodology/approach

This is a conceptual paper focussing on how to balance exploitation and exploration at the alliance level through managing three paradoxes of cooperation: similarity vs complementarity, integration vs modularity, and contracts vs trust.

Findings

While technological similarity, structural integration, and contracts are more likely to promote co-exploitation, technological complementarity, structural modularity, and trust are more likely to facilitate co-exploration. Alliance ambidexterity, which is beneficial for alliance performance, derives from either the combination of technological complementarity, structural integration, and contracts, or the combination of technological similarity, structural modularity, and trust temporally.

Research limitations/implications

Researchers should analyze the possibility of building alliance ambidexterity in other types of interorganizational relationships, and find other possible antecedents of interorganizational learning.

Practical implications

Managers should not simply treat R&D alliances as one of exploratory interorganizational relationships, but pay equal attention to co-exploitation and co-exploration. To achieve this balance, practitioners should combine technological complementarity with structural integration and contracts, or integrate technological similarity with structural modularity and trust.

Originality/value

This paper is one of the first contributions that analyze how an R&D alliance could gain its ambidexterity through the management of nested cooperation paradoxes.

Details

European Journal of Innovation Management, vol. 17 no. 2
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 13 June 2019

Fei Li, Yan Chen and Yipeng Liu

This paper aims to examine how integration modes impact the acquirer knowledge diffusion capacity of overseas mergers and acquisitions (M&As) effected by emerging market firms and…

1103

Abstract

Purpose

This paper aims to examine how integration modes impact the acquirer knowledge diffusion capacity of overseas mergers and acquisitions (M&As) effected by emerging market firms and the role played by the global innovation network position of the acquiring firms in affecting this relationship.

Design/methodology/approach

Through the use of structural equation modelling and bootstrap testing, the hypotheses are tested by drawing upon a sample of 102 overseas M&As effected by listed Chinese manufacturing companies.

Findings

The results show that acquirers from emerging countries are unable to increase the knowledge diffusion capacity unless they choose the right post-merger integration mode. This paper also finds that the relationship between integration mode and knowledge diffusion is channelled through the centrality and structural holes of acquirers in the global innovation networks. When considering the combinations of different resource similarities and complementarities of the acquired firms, differences emerge in the integration model and network embedded path of acquirers in emerging countries.

Practical implications

Emerging market multinational enterprises should consider post-merger integration as a crucial facilitator to the crafting of global innovation network positions that promote knowledge diffusion. The choices of integration mode and brand management autonomy should be matched with the resource similarities and complementarities that exist between the acquirer and target firms.

Originality/value

Based on the resource orchestration theory and by focussing on network centrality and structural hole as the crucial links, this study provides a nuanced understanding of the relationship between post-merger integration and knowledge diffusion and sheds light on latecomer firms from emerging countries.

Details

Journal of Knowledge Management, vol. 23 no. 7
Type: Research Article
ISSN: 1367-3270

Keywords

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 suggesting…

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

Article
Publication date: 19 April 2024

Nadia Hanif

Drawing on organizational design theory and organizational learning theory, this paper aims to examine component technology (CT) and the interaction between CT and experiential…

Abstract

Purpose

Drawing on organizational design theory and organizational learning theory, this paper aims to examine component technology (CT) and the interaction between CT and experiential learning (EL) effects on the degree of integration (DI) of cross-border technological acquisitions.

Design/methodology/approach

Using a sample of 267 firms consisting of 229 acquirer firms who started cross-border technological acquisitions from developed economies and 38 acquirer firms who initiated cross-border technological acquisitions from emerging economies over the period of 1993–2016, this study adopts a value chain framework to measure the acquirers’ acquisition integration degree for the investigation of the effects of CT and the interaction between CT and EL.

Findings

First, this paper finds CT in cross-border technological acquisitions exerting a positive influence on the acquirer firm’s likelihood of the DI implementation, in line with the organizational design theory. Second, in view of organizational learning theory, this study finds EL and the combined effect of CT and EL to have an inverse influence on the DI.

Practical implications

The results imply that the moderating role of EL significantly optimizes decision choices for an acquirer firm for integration implementation strategies in the form of DI, such as full integration (structural integration), partial integration and no integration (structural separation), which appears to be crucial for cross-border technological acquisitions.

Originality/value

This study contributed to international business strategies by shedding light on the importance of the DI for an acquirer firm that undertakes a cross-border technological acquisition with a CT target firm. This study explains why structural integration might be necessary in cross-border technological acquisitions regardless of the costs of disruption it imposes, as well as the contexts in which it becomes less important or unnecessary. The study disclosed that the increase in the likelihood of DI because of CT depends on the EL of the acquisition company in the host country environment and fluctuates with the prior acquisition knowledge and EL of the host country. Combining two cross-border technological acquisition’s literature streams, such as CT and EL, this study enlightens the importance of organizational learning theory and theory of organization design strategic direction making on acquisition integration implementation strategies.

Details

Review of International Business and Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 1 February 1995

Peter A. Stanwick and Larry P. Pleshko

An area that so far has been neglected within organizational theory research is the examination of the relationship of characteristics of the environment, formalized planning, and…

Abstract

An area that so far has been neglected within organizational theory research is the examination of the relationship of characteristics of the environment, formalized planning, and organizational structure, along with their resultant effects on firm performance. This paper examines these relationships based on three environmental dimensions, four design dimensions, and two dimensions of formalized planning used by decision makers within an organization. The results of an empirical investigation suggest that environmental characteristics and organizational design do have an impact on both performance efficiency and performance effectiveness. In addition, interactions of environmental characteristics and organizational design on performance effectiveness were significant.

Details

The International Journal of Organizational Analysis, vol. 3 no. 2
Type: Research Article
ISSN: 1055-3185

Article
Publication date: 1 February 2005

Premaratne Samaranayake

The main purpose of this paper is to document the research on development of a conceptual framework for the supply chain. The aims of the research were to develop an integrated…

12699

Abstract

Purpose

The main purpose of this paper is to document the research on development of a conceptual framework for the supply chain. The aims of the research were to develop an integrated framework, and to provide a methodology for planning of many components in the supply chain such as suppliers, materials, resources, warehouses, activities and customers. The proposed framework is based on the unitary structuring technique where bills of materials, bills of warehouses, project networks and operations routings, in both manufacturing and distribution networks, are combined into a single structure.

Design/methodology/approach

The framework is described along with illustrated numerical examples in the manufacturing and distribution environments.

Findings

The numerical testing has shown that each network in the supply chain provides an integrated approach to planning and execution of many components, and is capable of providing visibility, flexibility and maintainability for further improvement in the supply chain environment.

Originality/value

The framework and planning approach developed in this research are new in the area of supply chain management and provide a foundation for planning, control and execution in supply chain in various industries.

Details

Supply Chain Management: An International Journal, vol. 10 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 6 July 2015

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…

3382

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.

Details

Business Process Management Journal, vol. 21 no. 4
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 1 July 2006

María Iborra and Consuelo Dolz

In this paper, we analyze the heterogeneity of acquisition integration processes. Starting with the integration types laid down by Haspeslagh and Jemison (1991), we describe…

Abstract

In this paper, we analyze the heterogeneity of acquisition integration processes. Starting with the integration types laid down by Haspeslagh and Jemison (1991), we describe integration processes in terms of their integration level and their integration style. We analyze the postacquisition consequences of integration choice in terms of organizational management analysis, employee turnover, and communication and socialization problems. In a sample of 74 Spanish acquisitions, we demonstrate that management choices about integration level and integration style explain the more relevant consequences of the integration process. They have different consequences in terms of organizational management analysis, employee retention, and communication and socialization.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 4 no. 2
Type: Research Article
ISSN: 1536-5433

Keywords

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