Looking into the ‘black box’ – unlocking the effect of integration on acquisition performance

Extending research on the performance of Mergers and Acquisitions (M&As), this paper seeks to explain how the post-acquisition integration phase affects acquisition performance. Despite extensive research efforts, there remains a scant understanding of how acquisition implementation, particularly in the post-acquisition integration phase, impacts the performance of M&As. Based on an extensive study of eight acquisitions, in this paper, a grounded model detailing the mechanisms by which the post-acquisition integration phase affects acquisition performance is developed. The model posits that integration-related factors do not bear directly upon acquisition performance. Instead, their effect is mediated by functional organizations in both firms. When focusing into these functional mediating dynamics, we observe that integration-related processual, behavioral and cultural factors affect the identified functional mediators in different ways. Going forward, we echo calls for integrated perspectives to the study of M&A and M&A performance in particular.     

On the emergence and management of paradoxical tensions: The case of architectural firms

Paradoxical tensions are pervasive and unavoidable in the everyday practice of creativity-based contexts, such as architectural firms. Whilst the existing literature has extensively explored both coping strategies and multiple ways of approaching paradoxical tensions, we still have a limited understanding of how individuals engage with paradoxical tensions and how organizations support their members' efforts to sustain such tensions. Accordingly, my purpose here is to explore paradoxical tensions in the context of architectural firms and explain how firms and their members make sense of these tensions. I use a multiple case study to investigate empirically the salient paradoxical tensions central to architectural firms and to develop an understanding of what makes them salient. I explain how triggers evoke latent tensions and make them salient and also outline salient paradoxical tensions prevalent within this context. In exploring how architectural firms and their members make sense of these tensions, I outline and explain the importance of a paradoxical mindset, a paradoxical practice, and supporting organizational arrangements. I conclude by discussing the interplay among mindsets, practices, and arrangements as an organizing platform—a conceptual framework that future studies could explore further.     

学习、知识整合与创新的关系研究

本文研究企业的学习导向、知识整合、技术创新和管理创新之间相互影响的机制和路径,并以我国华南地区的196家企业为样本进行实证研究.学术贡献在于明确了上述变量之间的影响路径和作用机制,我们也发现学习导向对知识整合有显著的直接正向影响,学习导向必须通过知识的整合才能促进技术创新和管理创新.本文的结果对于正确理解组织的学习与创新过程以及知识整合在企业的学习与创新实践中的作用有重要的参考价值.     

Writing from practice

This study investigates the effects of integration change on the integration success of German acquisitions in Poland. It is argued that the degree of integration change has a positive impact on two success measures, namely, economic growth and efficient co-operation, in the acquisition target. It is further argued that process transparency, participation and positive reinforcement are moderators in this relationship between degree of integration change and integration success. Hypotheses are tested on 521 Polish employees from twenty-nine German acquisitions made in Poland between 1991 and 1999. The results show that there was a positive relationship between degree of integration change and integration success as expected and that only process transparency emerged as a significant moderator of this relationship. Consequences for post-acquisition management after German acquisitions in Poland and limitations of the study are discussed.     

Recasting the dynamics of post-acquisition integration: An embeddedness perspective

M&A scholars have generally assumed that post-acquisition integration is a self-contained process. However this ignores that this process rarely unfolds as the only ongoing initiative in an organization. We contend that post-acquisition integration is not detached from other simultaneous change processes in the organizational context and this has important implications for our understanding of how integration dynamics actually evolve. To further understand this embeddedness we examine the unfolding of a post-acquisition integration process in a company faced with an unanticipated drop in demand due to the global economic crisis. Through a qualitative, longitudinal study conducted over three years, we carried out 151 interviews to uncover the unfolding of the post-acquisition process. We find that post-acquisition integration is embedded in a set of co-evolving processes. We highlight four mechanisms (coordination, cohesion, disconnection, alienation) that arise from the co-evolution of processes that either facilitate or impede integration. Our findings contribute to our understanding of post-acquisition integration dynamics by recasting the integration process as embedded in a set of co-evolving processes that shape its unfolding.     

Internal and External Integration for Product Development: The Contingency Effects of Uncertainty,Equivocality, and Platform Strategy

Effective product development requires firms to unify internal and external participants. As companies attempt to create this integrated environment, two important questions emerge. Does a high level of internal integration lead to a higher level of external integration? In the context of product development, this study considers whether internal integration in the form of concurrent engineering practices affects the level of external integration as manifested by customer integration, supplier product integration, and supplier process integration. External integration, in turn, may influence competitive capabilities, namely product innovation performance and quality performance. Second, using contingency theory, do certain contextual variables moderate the linkages between integration strategy (external and internal) and performance? Specifically, this study considers whether uncertainty, equivocality, and platform development strategy change the relationships among internal integration, external integration, and competitive capabilities. Data collected from 244 manufacturing firms across several industries were used to test these research questions. The results indicate that both internal and external integration positively influence product innovation and quality and ultimately, profitability. With respect to contingency effects, the results indicate that equivocality moderates the relationships between integration and performance.     

Uncovering the Management Process: An Ethnographic Approach1

The continuing controversy over the extent to which labour management has been transformed in recent years has sustained considerable interest in the basic issue of how management regulates the employment relationship. However, two curious features of these burgeoning discussions are the neglect of small firms and the rarity of intensive fieldwork methods of investigation. This paper examines particular methodological issues arising from an ethnographic study of the small firm-dominated West Midlands clothing sector (Ram, 1994). The ethnographic approach was crucial to the unravelling of the complexities and tensions inherent in the management process. Insights generated by the method allow prevailing views of managerial practices in such settings to be questioned; and more generally, highlight the potential of ethnography as a means of management research.     

Decision Making in Cross‐Functional Teams: The Role of Decision Power*

Through a series of game‐theoretical models, this study systematically examines decision making in cross‐functional teams. It provides a framework for the design of an organization‐specific decision‐making process and for the alignment of a team's microdecision with the “optimal” decision that maximizes the firm's payoff. This study finds that even without changing the team leader, firms could change and even dictate the team's microdecision outcome via adjusting the team member's seniority, empowering team members with veto power or involving a supervisor as a threat to overrule the team decision. This finding implies that to reposition products in the marketplace, structuring cross‐functional teams’ microdecision‐making processes is essential.     

An analytic hierarchy process based simulation model for entry mode decision regarding foreign direct investment

A methodology is developed for ranking entry mode alternatives encountered by individual firms considering foreign direct investment (FDI). The methodology deals with the risks and uncertainties related to FDI. The analytic hierarchy process (AHP) is used to solve the multiple criteria decision-making problem using input from a firm's management. A simulation approach is incorporated into the AHP to handle the uncertainty considerations encountered in an FDI environment. The uncertainties include: (1) uncertainty regarding the future characteristics of the FDI decision making environment, (2) uncertainty associated with the decision maker's judgment regarding pairwise comparisons necessitated by the AHP.     

Strategies for Knowledge Creation in Firms *

We extend the knowledge‐based view by providing an explanation of how firms develop the capability to create knowledge. We take the view that firms are distributed knowledge systems composed of individuals who embody knowledge, and theoretically identify and empirically test the existence and effectiveness of two strategies – organization and project team – that promote their interactions to develop this capability. On the one hand, building on what we call the organization‐level innovation literature, we identify the organization strategy, which suggests investment in organization‐level integrative management practices to facilitate interactions to create knowledge among individuals situated in different parts of the system, independently of when a knowledge‐creation task is established and individuals are organized to create knowledge. On the other hand, building on what we call the team‐level innovation literature, we identify the project team strategy, which suggests investment in project team‐level integrative management practices to facilitate interactions to create knowledge among individuals once a knowledge‐creation task is defined and individuals are placed into teams to create knowledge. The two strategies are substitute approaches for the development of the capability, although the organization strategy appears to better predict outcomes of the capability. However, this approach might be more costly, so not all managers will choose to follow it.     

Impact of strategic and operational risk management practices on firm performance: An empirical investigation

Increasingly, creating and delivering value through complex supply chain networks involves substantial risks. However, strategy development under business risk conditions is not well-understood. This cross-country research examines how, under conditions of supply chain network risk, firms develop effective risk management practices. Using a literature review and survey research of managers from global firms; we present a research model, and empirically test the hypothesized relationships. The results show that under conditions of uncertainty, management decision-making is more likely to be cautious until visible forms of risks emerge, and prudent response mechanisms are put in place. This study identifies the crucial role of supply chain exploration and exploitation practices, and their influence in development of network risk management practices, leading to competitive financial outcomes.     

Managing Coopetitive Tensions at the Working‐group Level: The Rise of the Coopetitive Project Team

This study seeks to provide insights into the management of coopetitive tensions at the working‐group level. We theoretically discuss the principles of separation and integration and a combination of both to manage coopetitive tensions at this level. An in‐depth case study of a space programme conducted by two competitors ? Astrium and Thales Alenia Space ? was conducted. At the organizational level, according to the separation principle, we found that the coopetitors implemented a Coopetitive Project Team separated from the rest of their organization. At the individual level, according to the integration principle, we evidenced that project managers internalize the coopetitive paradox. At the working‐group level, we revealed a new principle, that of co‐management. The co‐management principle, in the case of dyadic coopetition, relies on the implementation of a dual, equally shared governance structure and a dual management committee. To efficiently manage coopetitive tensions, firms are combining the separation principle at the organizational level, the co‐management principle at the working‐group level and the integration principle at the individual level.     

并购后高管变更、合法性与并购绩效——基于制度理论的视角

并购后的高管变更对于企业的并购绩效具有重要的影响,但目前的研究结论没有取得一致性。本文基于制度理论的视角引入合法性的概念,通过123份并购样本实证分析了并购后高管变更、合法性以及并购绩效之间的关系。研究结果显示:并购后高管变更与并购的外部合法性和内部合法性之间均存在显著的负相关;而外部合法性和内部合法性对于并购绩效具有显著的积极作用。本研究结论对于我国企业的并购后高管变更决策以及如何提升并购绩效具有理论指导意义。     

Paradoxes and Dual Processes: A Review and Synthesis

Paradox and dual‐process theories are used by management and organization researchers in studying a variety of phenomena across a wide range of management sub‐fields. Cognition is a focal point of both of these theories. However, despite their growing importance and shared areas of inquiry, these two theories have developed largely in isolation from each other. To address this lack of integration, the authors conducted a review and synthesis of relevant aspects of the paradox and dual‐process literatures. Focusing bidirectionally on how paradox theory informs dual‐process theory and how dual‐process theory informs paradox theory, they highlight the ‘nestedness’ of intuition and analysis in paradox (a paradox within paradoxical thinking). On the basis of the review and synthesis, they identify four themes (epistemological and ontological assumptions in the relationship between intuition and analysis; psychological and psychometric issues in the relationships between intuition and analysis; managers’ experiences of tensions between intuition and analysis; managers’ approaches to tensions between intuition and analysis) and introduce an integrative framework that assimilates these two perspectives and sets out an agenda for future research and implications for management.     

日本制造企业新产品开发过程中模糊前端创新的效果分析

本文对日本制造企业新产品开发(NPD)过程中模糊前端(FFE)创新成功的关键因素进行了大样本分析,开发并构建了FFE创新要素与NPD项目绩效之间的因果关系模型.根据513家日本制造企业NPD项目的调查数据,运用AMOS验证因果关系模型,我们得出两个重要结论:在FFE阶段,技术和市场的不确定性减少越多,NPD项目的效率越高;开发前项目初始规划强度越大,开发过程中市场和技术的不确定性就越少.而且相对服务企业而言,制造企业的管理层更容易做出对降低市场不确定性有重大影响的初始规划.     

Emotionally intelligent top management and high family firm performance: Evidence from Germany

Executives in family firms are often confronted with emotionally loaded issues, in part due to the need to include the interests of the owning family. Given this context, we hypothesize how high family-firm performance is affected by the emotional intelligence (EI) of a family-based CEO and top-management team (TMT), in addition to the CEO's transformational leadership (TFL) and TMT's behavioral integration. Survey measures were taken from a random sample of 72 CEOs of German family firms and 245 members of their TMTs. We found that TMT behavioral integration mediates between CEO TFL and objective firm performance while CEO EI is significantly related to both CEO TFL and TMT EI. Implications are discussed for future research thereby suggesting an extension to upper-echelon theory.     

An examination of the ISO 9001:2000 standard and its influence on the integration of management systems

Abstract

Analysis of the literature and examination of the various models of integration and testing in the field, have revealed five key issues relating to management system integration. This paper examines the recently published ISO 9001 : 2000 quality management system standard to see how it addresses these issues, under the headings of compatibility, scope and organizational culture. The examination reveals that while compatibility with the ISO 14001 and OHSAS 18001 standards has been improved in some areas, a different approach and model of a management system has been used. The paper suggests that differences in the scope of the standards are also likely to give rise to different sub-cultures which will hinder integration, and scope and culture are more important than compatibility. This leads the authors to conclude that new models of integration should be based on an approach and definitions which can be used in any management system, as well as an integrated one. Models of an integrated management system should also emphasize the need for no significant differences in the scope of the integrated systems, and a strong culture which supports the main requirements of TQM.     

The Impact of Insider Power on Fraudulent Financial Reporting

This study examines the relationship between top management team duality and the decision to release false financial information. Using a matched sample of 103 firms that were convicted of issuing fraudulent financial statements in the period from 1992 to 1996, the results show that this form of illegal corporate behavior is more likely to occur when there is a concentration of power in the hands of insiders. For these firms, insiders control the top management team and the Board of Directors by simultaneously occupying the key managerial positions of clout within the firm while also sitting on the Board (duality), and through their ownership interest in the firm.     

On How to Deal with Deep Uncertainties in a Risk Assessment and Management Context

Recently, several authors have presented interesting contributions on how to meet deep or severe uncertainties in a risk analysis setting. In this article, we provide some reflections on some of the foundational pillars that this work is based on, including the meaning of concepts such as deep uncertainty, known probabilities, and correct models, the aim being to contribute to a strengthening of the scientific platform of the work, as well as providing new insights on how to best implement management policies meeting these uncertainties. We also provide perspectives on the boundaries and limitations of analytical approaches for supporting decision making in cases of deep uncertainties. A main conclusion of the article is that deep uncertainties call for managerial review and judgment that sees beyond the analytical frameworks studied in risk assessment and risk management contexts, including those now often suggested to be used, such as robust optimization techniques. This managerial review and judgment should be seen as a basic element of the risk management.     

动态能力的测量与功效:基于中国经验的实证研究

本文通过理论分析初步界定了测量动态能力的6个维度。为了验证此评测体系的科学性和实用性,本文对国内29家企业的高层管理者进行了半结构性访谈,并在探测性检验的基础上将动态能力的测量维度调整为市场潜力、组织柔性、战略隔绝、组织学习与组织变革5个方面。最后通过大规模的问卷调查,基于363份有效样本,对我国企业动态能力的制约性因素,以及它对企业绩效的贡献进行了检验,结果表明,动态能力在一定程度上受到经济结构的影响,在动态能力对企业绩效的有限的贡献中,不同能力因子的作用存在一定的差异性。