Integrating Cross-Border Acquisitions: A Process-oriented Approach

Abstract

Acquisitions and mergers of equals often fail to deliver shareholder value, largely because poor integration practices do not allow synergies to be created. The issue has been addressed by several studies from two different research streams: the first looks at the combination of resources after the acquisitions and the second focuses on the human factor. We propose an integrated model where the effects of these key aspects are tested simultaneously and where three independent variables are included: the extent of planning and knowledge from previous acquisitions and knowledge from previous relationships. We believe that through the model managers can prioritise their actions and select an appropriate time horizon for the integration.

Untangling micro-behavioral sources of failure in mergers and acquisitions: a theoretical integration and extension

“…Addressing these challenges requires specialized integration skills (Norburn & Schoenberg, 1994) and know-how (e.g. Bruton, Oviatt, & White, 1994;Colombo, Conca, Buongiorno, & Gnan, 2007;Larsson & Finkelstein, 1999;Meyer, 2008). In some cases, it is also necessary for the acquiring firms to provide autonomy to the acquired firms in managing the post-acquisition operations (Datta & Grant, 1990).…”

Antecedents of marketing integration in cross-border mergers and acquisitions

“…Within marketing integration outcomes, cost savings items were adapted from Homburg and Bucerius (2005) and relationship effectiveness items from Guenzi and Troilo (2007). Finally, the M&A performance items were adapted from Colombo et al (2007).…”

Hybridization in Mergers and Acquisitions

“…As outlined in the analyzed case studies, certain forms of hybridization consist of phenomena that have so far been treated as separate independent constructs, e.g. company size (Barkema & Schijven, 2008;Puranam et al, 2006;Paruchuri et al 2006;Puranam et al 2009;Nadolska & Barkema, 2007;Nemanich & Vera 2009;Homburg & Bucerius 2006;Meschi & Metais, 2006;Colombo et al, 2007;Zollo & Singh, 2004;Ellis et al, 2009;Cording et al, 2008) or speed of integration/assimilation (Angwin, 2004;Cording et al, 2008;Homburg & Bucerius, 2006). Moreover, the relevance of different acculturation strategies was empirically outlined, as few scholars suggest from a theoretical point of view (e.g.…”

“…Thus, outcomes of blending organizational cultures dependent on contextual factors (see also Stahl & Voigt, 2008). Colombo et al (2007) and Schweizer (2005) argue that each M&A is unique, which calls for more research considering contextual factors to explain how certain phenomena, such as culture differences, unfold as is emphasized in this doctoral thesis.…”