Gradual commitment and integration: a multilatina cross-border merger and acquisition case
DOI:
https://doi.org/10.18568/internext.v19i3.799Keywords:
Multilatina, Cross-border M&A, Integration, Gradual commitmentAbstract
Objective: To investigate the acquisition process of a multilatina by a much larger one, emphasizing its integration process. Specifically, this article explored the pre- and post-acquisition processes (considering the respective challenges and uncertainties of the process) to answer “How can effective acquisition be achieved?”. Method: This is a single-case study with a qualitative approach and process perspective. The coding process and analysis were based on triangulated primary and secondary data (first-order codes) and mergers and acquisitions (M&A) integration literature (second-order codes). Main Results: The study empirically demonstrates how the main cross-border M&A challenges to integration were averted through gradual commitment in the pre- and post-deal phases, providing important academic and practical contributions. Relevance / Originality / Theoretical / Methodological Contributions: The paper provides important academic and practical contributions regarding the pace of integration, size mismatch, and the importance of dedicated teams, not to mention two propositions to be tested. Finally, it stands out as a multilatina M&A case with a process perspective, answering research calls.
Downloads
References
Aguilera, R. V., Ciravegna, L., Cuervo-Cazurra, A., & Gonzalez-Perez, M. A. (2017). Multilatinas and the internationalization of Latin American firms. Journal of World Business, 52(4), 447-460. https://doi.org/10.1016/j.jwb.2017.05.006
Angwin, D. N. (2001). Mergers and acquisitions across European borders: National perspectives on preacquisition due diligence and the use of professional advisors. Journal of World Business, 36(1), 32-57. https://doi.org/10.1016/S1090-9516(00)00053-5
Angwin, D. N., & Meadows, M. (2009). The choice of insider or outsider top executives in acquired companies. Long Range Planning, 42(3), 359-389. https://doi.org/10.1016/j.lrp.2009.05.005
Bauer, F., Hautz, J., & Matzler, K. (2015). Unveiling the myths of M&A integration: challenging general management and consulting practice. Journal of Business Strategy, 36(2), 16-24. https://doi.org/10.1108/JBS-12-2013-0123
Bauer, F., Schriber, S., Degischer, D., & King, D. R. (2018). Contextualizing speed and cross-border acquisition performance: Labor market flexibility and efficiency effects. Journal of World Business, 53(2), 290-301. https://doi.org/10.1016/j.jwb.2018.01.001
Björkman, I., Stahl, G. K., & Vaara, E. (2007). Cultural differences and capability transfer in cross-border acquisitions: the mediating roles of capability complementarity, absorptive capacity, and social integration. JIBS, 38(4), 658-672. https://doi.org/10.1057/palgrave.jibs.8400287
Chen, F., & Wang, Y. (2014). Integration risk in cross-border M&A based on internal and external resource: Empirical evidence from China. Quality and Quantity, 48(1), 281-295. https://doi.org/10.1007/s11135-012-9768-2
Cuervo-Cazurra, A. (2016). Multilatinas as sources of new research insights: The learning and escape drivers of international expansion. Journal of Business Research, 69(6), 1963-1972. https://doi.org/10.1016/j.jbusres.2015.10.142
Cuervo-Cazurra, A., & Ramamurti, R. (2014). Introduction. In A. Cuervo-Cazurra & R. Ramamurti (Eds.), Understanding Multinationals from Emerging Markets (pp. 1-12). Cambridge University Press. https://doi.org/10.1017/CBO9781107587632.002
Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14(4), 532-550. https://doi.org/10.2307/258557
Eisenhardt, K., & Graebner, M. (2007). Theory building from cases: Opportunities and challenges. Academy of Management Journal, 50(1), 25-32. https://doi.org/10.5465/amj.2007.24160888
Figueira, S., Torres de Oliveira, R., Rottig, D., & Spigarelli, F. (2021). Lessons on a novel integration approach of emerging market acquisitions in developed countries. International Journal of Emerging Markets, 16(4), 645-673. https://doi.org/10.1108/IJOEM-01-2019-0077
Galpin, T. J. (2021). As another M&A wave begins: three keys to success. Strategy & Leadership, 49(2), 14-21. https://doi.org/10.1108/SL-01-2021-0008
Ghauri, P. (2004). Designing and conducting case studies in international business research. In R. Piekkari & C. Welch (Eds.), Handbook of Qualitative Research Methods for International Business (pp. 109-124). Edward Elgar.
Gioia, D., Corley, K. & Hamilton, A. (2013). Seeking qualitative rigor in inductive research: notes on the Gioia methodology. Organizational Research Methods, 16(1), 15-31. https://doi.org/10.1177/1094428112452151
Gomes, E., Angwin, D., Weber, Y. & Tarba, S. Y. (2013). Critical Success Factors through the Mergers and Acquisitions process: Revealing Pre- and Post-M&A Connections for Improved Performance. Thunderbird International Business Review, 55(1), 13-35. https://doi.org/10.1002/tie.21521
Graebner, M. E., Heimeriks, K. H., Huy, Q. N., & Vaara, E. (2017). The process of postmerger integration: A review and agenda for future research. Academy of Management Annals, 11(1), 1-32. https://doi.org/10.5465/annals.2014.0078
Haleblian, J., Devers, C. E., McNamara, G., Carpenter, M. A., & Davison, R. B. (2009). Taking stock of what we know about mergers and acquisitions: a review and research agenda. Journal of Management, 35(3), 469-502. https://doi.org/10.1177/0149206308330554
Haspeslagh, P. C., & Jemison, D. B. (1991). Managing Acquisitions: Creating value through corporate renewal. Free Press.
Homburg, C., & Bucerius, M. (2005). A marketing perspective on mergers and acquisitions: How marketing integration affects postmerger performance. Journal of Marketing, 69(1), 96-113. https://doi.org/10.1509/jmkg.69.1.95.55510
Homburg, C., & Bucerius, M. (2006). Is speed of integration really a success factor of mergers and acquisitions? An analysis of the role of internal and external relatedness. Strategic Management Journal, 27(4), 347-367. https://doi.org/10.1002/smj.520
Jemison, D., & Sitkin, S. (1986). Corporate Acquisitions: A Process Perspective. Academy of Management Review, 11(1), 145-163. https://doi.org/10.2307/258337
Johanson, J., & Vahlne, J.-E. (1977). The internationalization process of the firm: a model of knowledge development and increasing foreign market commitments. JIBS, 8(1), 23-32. https://doi.org/10.1057/palgrave.jibs.8490676
Junni, P., & Teerikangas, S. (2019). Mergers and Acquisitions. Oxford Research Encyclopedia of Business and Management. https://doi.org/10.1093/acrefore/9780190224851.013.15
Khan, Z., Rao-Nicholson, R., Akhtar, P., & He, S. (2021). Cross-border mergers and acquisitions of emerging economies' multinational enterprises — The mediating role of socialization integration mechanisms for successful integration. Human Resource Management Review, 31(3), 100578. https://doi.org/10.1016/j.hrmr.2016.12.003
Li, Y., Redding, K. S., & Xie, E. (2019). Organizational characteristics of cross-border mergers and acquisitions: A synthesis and classic case examples from around the world. Journal of Organizational Change Management, 34(1), 223-251. https://doi.org/10.1108/JOCM-01-2017-0008
Luo, Y., & Tung, R. L. (2018). A general theory of springboard MNEs. JIBS, 49(2), 129-152. https://doi.org/10.1057/s41267-017-0114-8
Öberg, C. (2018). Customer Roles in M&A Integration. International Studies of Management & Organization, 48(1), 43-70. https://doi.org/10.1080/00208825.2018.1407084
Oh, J.-H., & Johnston, W. J. (2021). How post-merger integration duration affects merger outcomes. Journal of Business & Industrial Marketing, 36(5), 807-820. https://doi.org/10.1108/JBIM-11-2019-0476
Rouzies, A., Colman H. L., & Angwin, D. (2019). Recasting the dynamics of post-acquisition integration: an embeddedness perspective. Long Range Planning, 52(2), 271-282. https://doi.org/10.1016/j.lrp.2018.03.003
Shimizu, K., Hitt, M. A., Vaidyanath, D., & Pisano, V. (2004). Theoretical foundations of cross-border mergers and acquisitions: A review of current research and recommendations for the future. Journal of International Management, 10(3), 307-353. https://doi.org/10.1016/j.intman.2004.05.005
Stahl, G. K., Angwin, D. N., Very, P., Gomes, E., Weber, Y., Tarba, S. Y., Noorderhaven, N., Benyamini, H., Bouckenooghe, D., Chreim, S., Durand, M., Hassett, M. E., Kokk, G., Mendenhall, M. E., Mirc, N., Miska, C., Park, K. M., Reynolds, N.-S., Rouzies, A., Sarala, R. M., Seloti, S. L., Jr., Søndergaard, M., & Yildiz, H. E. (2013). Sociocultural Integration in Mergers and Acquisitions: Unresolved Paradoxes and Directions for Future Research. Thunderbird International Business Review, 55(4), 333-356. https://doi.org/10.1002/tie.21549
Stahl, G. K., & Voigt, A. (2008). Do cultural differences matter in mergers and acquisitions? A tentative model and examination. Organization Science, 19(1), 160-176. https://doi.org/10.1287/orsc.1070.0270
Teerikangas, S., & Thanos, I. C. (2018). Looking into the ‘black box’–unlocking the effect of integration on acquisition performance. European Management Journal, 36(3), 366-380. https://doi.org/10.1016/j.emj.2017.06.002
Torres de Oliveira, R., & Rottig, D. (2018). Chinese acquisitions of developed market firms: home semi-formal institutions and a supportive partnering approach. Journal of Business Research, 93, 230-241. https://doi.org/10.1016/j.jbusres.2018.04.031
United Nations Conference on Trade and Development (UNCTAD) (2021). World Investment Report. UNCTAD. Available at https://unctad.org/system/files/official-document/wir2021_en.pdf
Yin, R. K. (2014). Case study research: Design and methods. Sage.
Zilber, M. A., Fischmann, A. A., & Pikieny, E. E. (2002). Alternativas de Crescimento: a Alternativa de Fusões e Aquisições. RAM-Revista de Administração Mackenzie, 3(2), 137-154.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Clarice Kogut, Renato de Mello, Thiago Brandão da Cunha
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
- The author(s) authorize the publication of the article in the journal;
- The author(s) ensure that the contribution is original and unpublished and is not being evaluated in other journal(s);
- The journal is not responsible for the opinions, ideas and concepts expressed in the texts because they are the sole responsibility of the author(s);
- In case an article will be approved for publication, the author will sign the term of Cession of Copyright to the journal, according to the download form.