Marketing integration in cross-border mergers and acquisitions: conceptual framework and research propositions

Abstract

Cross-border mergers and acquisitions (M&As) are strategic business expansions across national boundaries, which can prove rather problematic and complex. The most challenging part of the process is the integration of two different firms that feature different management styles and departmental practice. Once the integration seeps deeper into functional levels, strategic-level M&A commitment is faced with operational implementation issues. The marketing departmental function is usually heavily involved in this integration process. Research on marketing integration in relation to M&As has paid little attention to the process of combining similar resources from two similar departments, particularly in the cross-border M&A context. Furthermore, existing research does not clearly demonstrate the success factors that contribute to the marketing integration process in M&As. Hence, this paper discusses the phenomenon of marketing integration in the cross-border M&A context. Collaboration, interaction, marketing synergy and redeployment of marketing resources are proposed as antecedents to the integration. Drawing from the extant literature, propositions are developed, and mechanisms to improve M&A integration performance are elaborated.

Standardization versus adaptation of global marketing strategies in emerging market cross-border acquisitions

“…There has been a limited research investigating marketing integration related issues that follow M&As (Degbey & Pelto, 2015;Öberg, 2014;Sinkovics et al, 2014). Yet, marketing integration is as important as other variables, such as cultural integration and boundary negotiation, between the merging companies (Drori et al, 2011(Drori et al, , 2013Sinkovics et al, 2014).…”

“…Yet, marketing integration is as important as other variables, such as cultural integration and boundary negotiation, between the merging companies (Drori et al, 2011(Drori et al, , 2013Sinkovics et al, 2014).…”

“…Culture and identity related clashes could potentially affect the standardization or adaptation of global marketing strategies following M&As. However, despite its contributions, prior research on PMI has largely neglected the factors that lead to the standardization or adaptation of marketing strategies adopted during the M&A integration phase (e.g., Homburg & Bucerius, 2005;Sinkovics, Jedin & Sinkovics, 2014). This gap is even more glaring in the context of EMNEs M&As.…”

“…However, despite its contributions, prior research on PMI has largely neglected the factors that lead to the standardization or adaptation of marketing strategies adopted during the M&A integration phase (e.g. Homburg and Bucerius, 2005; Sinkovics et al , 2014). This gap is even more glaring in the context of EMNEs M&As.…”

Marketing Integration Decisions, Intermediate Goals and Market Expansion in Horizontal Acquisitions: How Marketing Fit Moderates the Relationships on Intermediate Goals

“…Bower, ; Kling et al ., ). In line with others we hold that marketing fit will enable the acquirer to build on its existing marketing resources – such as brands, sales force and expertise – which in turn will facilitate the elimination of any redundancies and the sharing and transfer of assets (Bommaraju et al ., ; Bruni and Verona, ; Sinkovics, Jedin and Sinkovics, ). We assume that marketing fit is conducive to cost savings resulting from fast and deep marketing integration and hypothesize…”