Rights statement: 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
Accepted author manuscript, 802 KB, PDF document
Available under license: CC BY-NC-ND
Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - How Industry Lifecycle Sets Boundary Conditions for M&A Integration
AU - Bauer, Florian
AU - Dao, Mai Anh
AU - Matzler, Kurt
AU - Tarba, Shlomo Y.
N1 - 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
PY - 2017/8/1
Y1 - 2017/8/1
N2 - 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.
AB - 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.
U2 - 10.1016/j.lrp.2016.09.002
DO - 10.1016/j.lrp.2016.09.002
M3 - Journal article
VL - 50
SP - 501
EP - 517
JO - Long Range Planning
JF - Long Range Planning
SN - 0024-6301
IS - 4
ER -