How Industry Lifecycle Sets Boundary Conditions for M&A Integration

Bauer, Florian and Dao, Mai Anh and Matzler, Kurt and Tarba, Shlomo Y. (2017) How Industry Lifecycle Sets Boundary Conditions for M&A Integration. Long Range Planning, 50 (4). pp. 501-517. ISSN 0024-6301

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Abstract

Value creation in acquisitions is tightly connected with actions taken during integration. However, research on integration mainly concentrates on integration typologies or on the autonomy vs. absorption debate, each stream with empirical evidence for respective benefits. We argue and give empirical evidence that there is no “one size fits all” approach for integration but rather an interdependency of the suitability of integration related decisions with the industry lifecycle. We demonstrate that beneficial or detrimental effects of degree of integration, formal, and informal coordination mechanisms are context-specific and differ significantly in growing, mature, and declining industries. We show that the degree of integration only has a significant beneficial effect in mature industries, while no effect in cases of declining and fast growing industries is observable. Here we indicate that in acquisitions with buyers in declining industries, formal coordination mechanisms are most beneficial, while in growing industries only informal coordination mechanisms are valuable.

Item Type:
Journal Article
Journal or Publication Title:
Long Range Planning
Additional Information:
This is the author’s version of a work that was accepted for publication in Long Range Planning. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Long Range Planning, 50, 4, 2017 DOI: 10.1016/j.lrp.2016.09.002
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/3300/3305
Subjects:
ID Code:
125390
Deposited By:
Deposited On:
04 Jul 2018 15:36
Refereed?:
Yes
Published?:
Published
Last Modified:
10 Apr 2020 04:08