Antecedents of marketing integration in cross-border mergers and acquisitions

Abstract

Purpose -The purpose of this paper is to examine operational-level implementation issues regarding mergers and acquisitions (M&As) in general, and resource combination and integration at the functional marketing level in particular. Design/methodology/approach -The paper introduces four factors (i.e. collaboration, interaction, marketing synergy, and the realignment of marketing resources) that support successful M&A marketing integration and enhance overall M&A performance. Findings -The results indicate that marketing synergy and the realignment of marketing resources contribute significantly to the extent of integration. At the same time, the authors find a significant but negative relationship between the interaction dimension and the speed of integration. Originality/value -The cultural integration of firms that feature different management styles and organizational cultures has been recognized as a particularly challenging aspect of cross-border M&As. This study explains factors that contribute to effective marketing integration in M&As.

Information technology and marketing performance within international market-entry alliances

“…During the past two decades, the international business sphere has witnessed dramatically increasing growth in cross-border collaborations in the forms of strategic alliances, joint ventures, and merger and acquisitions (Ahammad et al, 2012;Ahammad, Tarba, Liu, Glaister and Cooper, 2016;Basuil and Datta, 2015;Chiao et al, 2010;Czinkota et al, 2009;Di Guardo et al, 2016;Dutta et al, 2016;Gaffney et al, 2016;Rao-Nicholson et al, 2016;Sinkovics et al, 2015;Whitelock, 2002;Zheng et al, 2016). Marketing practices and performance in this context have received growing recognition as a key measure of overall effectiveness of the collaboration Burgel and Murray, 2000;Dan and Zondag, 2016;Eng and Ozdemir, 2014;Huang and Brass, 2016;Sinkovics et al, 2015;Vrontis et al, 2009).…”

“…Marketing practices and performance in this context have received growing recognition as a key measure of overall effectiveness of the collaboration Burgel and Murray, 2000;Dan and Zondag, 2016;Eng and Ozdemir, 2014;Huang and Brass, 2016;Sinkovics et al, 2015;Vrontis et al, 2009). Positive marketing performance in the host location is considered crucial for foreign investor firms due to the widely recognised contrast between the amount of capital involved and the high rate of failure (Gomes et al, 2011;Weber et al, 2011).…”

Relationship Engagement in Mergers and Acquisition through Collegial Leadership

“…We look at M&A transactions undertaken by the Malaysian firms, within the period of seven years (2006)(2007)(2008)(2009)(2010)(2011)(2012)(2013). This period was also applied by Sinkovics et al (2015) in the M&A studies. However, the scope of this study was limited to Malaysian contexts.…”

“…This measurement was taken from Jedin and Saad (2012). The final division is performance outcomes, which were adapted from (Sinkovics, et al, 2015).…”

“…M&A also has disadvantages that are attributed to hubris, managerial incompetency in achieving projected economies of scale and the firms being strategically mismatched (Sinkovics, Sinkovics, Lew, Jedin, & Zagelmeyer, 2015). Lack of communication between top management and other managerial positions is also believed to add more hurdles to the amalgamation process.…”