Home > Research > Publications & Outputs > How Industry Lifecycle Sets Boundary Conditions...

Electronic data

  • 15LRP1004R3

    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

Links

Text available via DOI:

View graph of relations

How Industry Lifecycle Sets Boundary Conditions for M&A Integration

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published
Close
<mark>Journal publication date</mark>1/08/2017
<mark>Journal</mark>Long Range Planning
Issue number4
Volume50
Number of pages17
Pages (from-to)501-517
Publication StatusPublished
Early online date16/09/16
<mark>Original language</mark>English

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.

Bibliographic note

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