Elgar original reference
Edited by Pietro Mazzola and Franz W. Kellermanns
Chapter 18: A Review of Research Progress in Understanding the Acquisition Integration Process: Building Directions for Future Research
Annette L. Ranft, Frank C. Butler and Jennifer C. Sexton Mergers and (M&As) acquisitions play a major role in corporate strategy as evidenced by the $1.45 trillion spent on M&A activity in the United States in 2007 alone (Mergers and Acquisitions Report, 2008). Despite the preponderance of continued acquisition activity, traditional financial, strategic, and organizational perspectives of M&As have failed to explain the generally disappointing value created by these corporate events (King et al., 2004; Larsson and Finkelstein, 1999; Pablo et al., 1996). Scholars have increasingly emphasized the importance of the post-acquisition integration process, where ‘the actions of management, and the process of integration, determine the extent to which potential benefits of the acquisition are realized’ (Birkinshaw et al., 2000: 397). Indeed, it is during the acquisition integration process that potential synergy in an acquisition is realized (Larsson and Finkelstein, 1999). A major challenge then, for both managers and scholars, is to identify and manage integration processes that can lead to post-acquisition success. While there is a rich body of research on mergers and acquisitions,1 research specifically examining process issues during acquisition integration is more limited and somewhat disjointed. A theoretical process perspective of acquisitions was developed and introduced by Jemison and Sitkin (1986). This perspective considers the overall acquisition process as a series of decisions and behaviors from early stages of the due diligence phase, to deal construction, to the post-deal integration phase. Subsequent process perspectives focused on fundamental dimensions of the acquisition integration phase...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.