AMN Summaries articles
Contents
AMN Summaries articles .......................................................................................................................... 1
Lecture 4................................................................................................................................................... 2
Jemison, D. & Sitkin, S. 1986. Corporate acquisitions: A process perspective .................................... 2
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 ............................... 6
Lecture 5................................................................................................................................................. 10
Gates, S. & Very, P., 2003. Measuring Performance during M&A Integration .................................. 10
Epstein, M.J., 2004. The Drivers of Success in Post-Merger Integration ........................................... 13
, Lecture 4
Jemison, D. & Sitkin, S. 1986. Corporate acquisitions: A process perspective
This paper suggests that the acquisition choice perspective is supplemented with a process
perspective which recognizes the acquisition process itself as a potentially important determinant of
activities and outcomes (figure 1). The proposed process model retains an important role for
strategic and organizational fit between firms, but it is suggested here that four impediments present
in the process can result in the inadequate consideration or misuse of strategic and organizational fit
issues, indirectly affecting acquisition outcomes (table 1). Because these impediments are grounded
in the process itself, they have been overlooked in previous research.
Current acquisition research focuses mainly on strategic fit between suitor and target firms in light of
general industry, market, or technology-related issues, or on organizational fit in light of how two
firms can be integrated with respect to day-to-day operations. The present paper is directed towards
more fundamental phenomena and proposes an alternative model, one that highlights the role of
the acquisition process itself.
Increased participation of operating managers and key staff people throughout the acquisition
process is often recommended in an effective strategic choice. Such involvement, they argue, can
facilitate better strategic choices by fostering a broader information base and greater commitment
from those who will have to implement the decisions made during acquisition negotiations. With
regard to organizational fit, important is the inevitable impact of acquisition processes on
organizational employees. It is important to understand and anticipate the people-related aspects of
acquisitions stressing the importance of job security, cultural fit, and establishment of clear links
between former and future work roles. The process approach emphasizes the extent to which the
acquisition process itself may be related to the ability to make the business combination successful.
The following argument is proposed: (1) inadequate analysis of strategic fit is a sure route to failed
acquisitions, (2) because related business acquisitions require the integration of a variety of
organizational activities, issues of organizational fit must also be considered, and (3) even when
managers recognize the importance of analyzing strategic and organizational fit aspects of an
acquisition, they often are prevented from doing this by a series of impediments inherent in the very
process of analyzing, negotiating with, and acquiring other firms. Four key impediments are
Contents
AMN Summaries articles .......................................................................................................................... 1
Lecture 4................................................................................................................................................... 2
Jemison, D. & Sitkin, S. 1986. Corporate acquisitions: A process perspective .................................... 2
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 ............................... 6
Lecture 5................................................................................................................................................. 10
Gates, S. & Very, P., 2003. Measuring Performance during M&A Integration .................................. 10
Epstein, M.J., 2004. The Drivers of Success in Post-Merger Integration ........................................... 13
, Lecture 4
Jemison, D. & Sitkin, S. 1986. Corporate acquisitions: A process perspective
This paper suggests that the acquisition choice perspective is supplemented with a process
perspective which recognizes the acquisition process itself as a potentially important determinant of
activities and outcomes (figure 1). The proposed process model retains an important role for
strategic and organizational fit between firms, but it is suggested here that four impediments present
in the process can result in the inadequate consideration or misuse of strategic and organizational fit
issues, indirectly affecting acquisition outcomes (table 1). Because these impediments are grounded
in the process itself, they have been overlooked in previous research.
Current acquisition research focuses mainly on strategic fit between suitor and target firms in light of
general industry, market, or technology-related issues, or on organizational fit in light of how two
firms can be integrated with respect to day-to-day operations. The present paper is directed towards
more fundamental phenomena and proposes an alternative model, one that highlights the role of
the acquisition process itself.
Increased participation of operating managers and key staff people throughout the acquisition
process is often recommended in an effective strategic choice. Such involvement, they argue, can
facilitate better strategic choices by fostering a broader information base and greater commitment
from those who will have to implement the decisions made during acquisition negotiations. With
regard to organizational fit, important is the inevitable impact of acquisition processes on
organizational employees. It is important to understand and anticipate the people-related aspects of
acquisitions stressing the importance of job security, cultural fit, and establishment of clear links
between former and future work roles. The process approach emphasizes the extent to which the
acquisition process itself may be related to the ability to make the business combination successful.
The following argument is proposed: (1) inadequate analysis of strategic fit is a sure route to failed
acquisitions, (2) because related business acquisitions require the integration of a variety of
organizational activities, issues of organizational fit must also be considered, and (3) even when
managers recognize the importance of analyzing strategic and organizational fit aspects of an
acquisition, they often are prevented from doing this by a series of impediments inherent in the very
process of analyzing, negotiating with, and acquiring other firms. Four key impediments are
