Abstract
The paper discusses main problems occurring in the post-acquisition integration phase involving Italian mid-sized manufacturing companies. The research refers to 8 cases of Italian mid-large-sized companies acquiring Italian small-mid-sized companies in order to implement strategies of horizontal integration. The analysis highlights the difficulties connected to the valuable integration of the downstream and upstream business relationships of the acquiring and the acquired companies. The paper identifies two main factors affecting the difficulties of the post-acquisition integration of inter-organization assets – the distance in the management style of business relationships and the distance in their strategic focus in the acquiring and in the acquired companiesReferences
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Anderson H., Havila V., Salmi A. (2001). Can you buy a business relationship? On the importance of cutsomer and supplier relationships in acquisitions. Industrial Marketing Management, 30: 575-586.
Anderson J.C., Narus J.A. (1998). Business Marketing Management. Understanding, Creating and Delivering Value. Prentice Hall: NY.
Angwin D. (2004). Speed in M&A Integration: the First 100 Days. European Management Journal, 22 (4): 418-430.
Bannert V., Tschirky H. (2004). Integration planning for technology intensive acquisitions. R&D Management, 34 (5): 481-494.
Blankeburg D., Johanson J. (1990). Managing Network Connections in International Business. Scandinavian International Business Review, 1 (1): 5-19.
Bocconcelli R., Snehota I., Tunisini A. (2006). Network Relationships and Corporate Acquisitions Outcomes. The IMP Journal, 2 (1): 4-28.
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Burt R.S. (1992). Structural Holes – The Social Structure of Competition. Harvard University Press: Boston, MA.
Capron L. (1999). The long term performance of horizontal acquisitions. Strategic Management Journal, 20: 987-1018.
Chanmugam R., Shill W., Mann D., Ficery K., Pursche B. (2005). The intelligent clean room: ensuring value capture in mergers and acquisitions. Journal of Business Strategy, 26 (3): 43-49.
Chatterjee S., Lubatkin M., Schweiger D.M., Weber Y. (1992). Cultural Differences and Shareholder Value in Related Mergers: Linking Equity and Human Capital. Strategic Management Journal, 13: 319-334.
Colli A. (2005). Il quarto capitalismo. L’industria, 2: 219-235.
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Corò G., Grandinetti G. (2007). Le strategie di crescita delle medie imprese. Il Sole 24 Ore: Milano.
Cortesi A. (2009). La gestione del processo di integrazione nelle fusioni e nelle acquisizioni. Pearson Education: Italia.
Datta D.K. (1991). Organizational fit and acquisition performance: effects of postacquisition integration. Strategic Management Journal, 12: 281-297.
Davidow W.H., Malone M.S. (1992). The Virtual Corporation. Structuring and Revitalizing the Cooperation for the 21st Century. Harper Collins: NY.
DiGeorgio R. (2002). Making mergers and acquisitions work: What we know and what we don’t know – part II. Journal of Change Management, 3 (3): 259-274.
Dubois A., Gadde L-E. (2002), Systematic combining: an abductive approach to case research. Journal of Business Research, 55 (7): 553-560.
Duncan C., Mtar M. (2006). Determinants of international acquisition success: lessons from FirstGroup in North America. European Management Journal, 24 (6): 396-410.
Eisenhardt K.M., Graebner M.E. (2007). Theory building from cases: Opportunities and challenges. Academy of Management Journal, 50 (1): 25-32.
Epstein M.J. (2004). The drivers of success in post-merger integration. Organizational Dynamics, 33 (2): 174-189.
Epstein M.J. (2005). The determinants and evaluation of merger success. Business Horizons, 48: 37-46.
Fiocca R., Snehota I., Tunisini A. (2009). Marketing Business-to-Business. McGraw Hill: Milano.
Ford D., Hakansson H., Gadde L.-E., Snehota I. (2003). Managing business relationships. Wiley: Chichester.
Gerpott T.J. (1995). Successful integration of R&D functions after acquisitions: An exploratory empirical Study. R&D Management, 25 (2): 161-178.
Hakansson H., Snehota I. (1995). Developing Relationships in Business Networks. Routledge:London.
Hakansson H., Ford D., Gadde L.-E., Snehota I., Waluszewski A. (2009). Business in networks. Wiley: Chichester.
Hakkinen L., Norrman A., Hilmola O.P., Ojala L. (2004). Logistics Integration in Horizontal Mergers and Acquisitions. The International Journal of Logistics Management, 15 (1): 27-42.
Haspeslagh P.C., Jemison D.B. (1991). Managing Acquisitions: Creating value through corporate renewal. The Free Press: NY.
Hitt M.A., King D., Krishnan H., Makri M., Schijven M., Shimizu
K., Zhu H. (2009). Mergers and acquisitions: overcoming pitfalls, building synergy, and creating value. Business Horizons, 52: 523-529.
Johanson J. (1989). Business Relationships and Industrial Networks, in Perspectives on the Economics of Organization. Crafoord Lectures 1, Institute of Economic Research, Lund
University Press, pp.65-80.
Kothandaraman P., Wilson K. (2001). The Future of Competition-Value Creating networks. Industrial Marketing Management, 30: 379-389.
KPMG (2010). 20 anni di M&A. Fusioni e acquisizioni in Italia dal 1988 al 2010. Egea: Milano.
Lin N. (1999). Building a Network Theory of Social Capital. Connections, 22(1): 28-51.
Lorenzoni G. (1990). L’architettura di sviluppo delle imprese minori. Il Mulino: Bologna.
Lorenzoni G. (1996). Lo sviluppo delle piccole e medie imprese. XIX Convegno Annuale AIDEA, Piacenza 19-20 settembre.
Lorenzoni G., Lipparini A. (1999). The Leveraging of Interfirm Relationships as a Distinctive Organizational Capability: a Longitudinal Study. Strategic Management Journal, 20 (4): 317-338.
Marks M.L., Mirvis P.H. (2000). Managing Mergers, Acquisitions and Alliances: Creating an Effective Transition Structure. Organizational Dynamics, 28 (3): 35-46.
Mattson L.-G. (1995). An application of a network approach to marketing: Defending and changing positions. In N. Dholakia, J. Arndt (Eds.), Changing the Course of Marketing: Alternative Paradigms for Widening Marketing Theory, JAI Press: Greenwich, 263-288.
Mediobanca-Unioncamere (2012). Le medie imprese industriali italiane – 2000-2009, Ufficio Studi Mediobanca e Centro Studi Unioncamere: Milano.
Mintzberg H. (1979). An Emerging Strategy of Direct Research. Administrative Science Quarterly, 24: 582-589.
Normann R. (2001). Reframing business: when the map changes the landscape. Wiley: Chichester.
Normann R., Ramirez R. (1998). Designing Interactive Strategy: from Value Chain to Value Constellation. Wiley: Chichester, NY.
Pablo A.L. (1994). Determinants of acquisition integration level: A decision-making perspective. Academy of Management Journal, 37: 803-836.
Pablo A.L., Javidan M. (2002). Thinking of a merger … Do you know their risk propensity profile?. Organizational Dynamics, 30 (3): 206-222.
Quah P., Young S. (2005). Post-acquisition Management. A phases approach for crossborder M&As. European Management Journal, 23 (1): 65-75.
Rock M.L. (ed) (1990). Fusioni ed acquisizioni. Aspetti finanziari, strategici ed organizzativi. McGraw Hill: Milano.
Searby F. W. (1969). Control postmerger change. Harvard Business Review. 47 (5): 4-11.
Shrivastava P. (1986). Postmerger integration. The Journal of Business Strategy, 7 (1): 65-76.
Thompson J.D. (1967). Organizations in Action. McGraw Hill: NY.
Ulaga W., Eggert A. (2006). Value-Based Differentiation in Business Relationships. Gaining and Sustaining Key Supplier Status. Journal of Marketing, 70 (1): 119-136.
Vaccà S. (1991). La grande impresa in transizione. Economia e Politica Industriale, 71.
Varaldo R. (2006). Il nuovo modello competitivo e aziendale dei distretti industriali. Economia e politica industriale, 1: 25-42.
Varaldo R., Dalli D., Resciniti R., Tunisini A. (a cura di) (2009). Un tesoro emergente. Le medie imprese italiane dell’era globale. Franco Angeli: Milano.
Walter A., Ritter T., Gemunden G. (2001). Value Creation in Buyer-Seller Relationships. Industrial Marketing Management, 30: 365-377.
Wittman C.M., Hunt S.D., Arnett D.B. (2009). Explaining alliances success: Competences, resources, relational factors and resource-advantage theory. Industrial Marketing Management, 38:743-756.
Yin R.K. (2003). Case study research, design and methods, 3rd ed. Sage Publications:Newbury Park.
Anderson H., Havila V., Salmi A. (2001). Can you buy a business relationship? On the importance of cutsomer and supplier relationships in acquisitions. Industrial Marketing Management, 30: 575-586.
Anderson J.C., Narus J.A. (1998). Business Marketing Management. Understanding, Creating and Delivering Value. Prentice Hall: NY.
Angwin D. (2004). Speed in M&A Integration: the First 100 Days. European Management Journal, 22 (4): 418-430.
Bannert V., Tschirky H. (2004). Integration planning for technology intensive acquisitions. R&D Management, 34 (5): 481-494.
Blankeburg D., Johanson J. (1990). Managing Network Connections in International Business. Scandinavian International Business Review, 1 (1): 5-19.
Bocconcelli R., Snehota I., Tunisini A. (2006). Network Relationships and Corporate Acquisitions Outcomes. The IMP Journal, 2 (1): 4-28.
Brown C., Langford R. (2004). Making M&A pay: lessons from the world’s most successful acquirers. Strategy & Leadership, 32 (1): 5-14.
Burt R.S. (1992). Structural Holes – The Social Structure of Competition. Harvard University Press: Boston, MA.
Capron L. (1999). The long term performance of horizontal acquisitions. Strategic Management Journal, 20: 987-1018.
Chanmugam R., Shill W., Mann D., Ficery K., Pursche B. (2005). The intelligent clean room: ensuring value capture in mergers and acquisitions. Journal of Business Strategy, 26 (3): 43-49.
Chatterjee S., Lubatkin M., Schweiger D.M., Weber Y. (1992). Cultural Differences and Shareholder Value in Related Mergers: Linking Equity and Human Capital. Strategic Management Journal, 13: 319-334.
Colli A. (2005). Il quarto capitalismo. L’industria, 2: 219-235.
Coltorti F., Resciniti R., Tunisini A., Varaldo R. (Eds.) (2013). Midsized Manufacturing Companies: The New Driver of Italian Competitiveness. Springer Verlag.
Corò G., Grandinetti G. (2007). Le strategie di crescita delle medie imprese. Il Sole 24 Ore: Milano.
Cortesi A. (2009). La gestione del processo di integrazione nelle fusioni e nelle acquisizioni. Pearson Education: Italia.
Datta D.K. (1991). Organizational fit and acquisition performance: effects of postacquisition integration. Strategic Management Journal, 12: 281-297.
Davidow W.H., Malone M.S. (1992). The Virtual Corporation. Structuring and Revitalizing the Cooperation for the 21st Century. Harper Collins: NY.
DiGeorgio R. (2002). Making mergers and acquisitions work: What we know and what we don’t know – part II. Journal of Change Management, 3 (3): 259-274.
Dubois A., Gadde L-E. (2002), Systematic combining: an abductive approach to case research. Journal of Business Research, 55 (7): 553-560.
Duncan C., Mtar M. (2006). Determinants of international acquisition success: lessons from FirstGroup in North America. European Management Journal, 24 (6): 396-410.
Eisenhardt K.M., Graebner M.E. (2007). Theory building from cases: Opportunities and challenges. Academy of Management Journal, 50 (1): 25-32.
Epstein M.J. (2004). The drivers of success in post-merger integration. Organizational Dynamics, 33 (2): 174-189.
Epstein M.J. (2005). The determinants and evaluation of merger success. Business Horizons, 48: 37-46.
Fiocca R., Snehota I., Tunisini A. (2009). Marketing Business-to-Business. McGraw Hill: Milano.
Ford D., Hakansson H., Gadde L.-E., Snehota I. (2003). Managing business relationships. Wiley: Chichester.
Gerpott T.J. (1995). Successful integration of R&D functions after acquisitions: An exploratory empirical Study. R&D Management, 25 (2): 161-178.
Hakansson H., Snehota I. (1995). Developing Relationships in Business Networks. Routledge:London.
Hakansson H., Ford D., Gadde L.-E., Snehota I., Waluszewski A. (2009). Business in networks. Wiley: Chichester.
Hakkinen L., Norrman A., Hilmola O.P., Ojala L. (2004). Logistics Integration in Horizontal Mergers and Acquisitions. The International Journal of Logistics Management, 15 (1): 27-42.
Haspeslagh P.C., Jemison D.B. (1991). Managing Acquisitions: Creating value through corporate renewal. The Free Press: NY.
Hitt M.A., King D., Krishnan H., Makri M., Schijven M., Shimizu
K., Zhu H. (2009). Mergers and acquisitions: overcoming pitfalls, building synergy, and creating value. Business Horizons, 52: 523-529.
Johanson J. (1989). Business Relationships and Industrial Networks, in Perspectives on the Economics of Organization. Crafoord Lectures 1, Institute of Economic Research, Lund
University Press, pp.65-80.
Kothandaraman P., Wilson K. (2001). The Future of Competition-Value Creating networks. Industrial Marketing Management, 30: 379-389.
KPMG (2010). 20 anni di M&A. Fusioni e acquisizioni in Italia dal 1988 al 2010. Egea: Milano.
Lin N. (1999). Building a Network Theory of Social Capital. Connections, 22(1): 28-51.
Lorenzoni G. (1990). L’architettura di sviluppo delle imprese minori. Il Mulino: Bologna.
Lorenzoni G. (1996). Lo sviluppo delle piccole e medie imprese. XIX Convegno Annuale AIDEA, Piacenza 19-20 settembre.
Lorenzoni G., Lipparini A. (1999). The Leveraging of Interfirm Relationships as a Distinctive Organizational Capability: a Longitudinal Study. Strategic Management Journal, 20 (4): 317-338.
Marks M.L., Mirvis P.H. (2000). Managing Mergers, Acquisitions and Alliances: Creating an Effective Transition Structure. Organizational Dynamics, 28 (3): 35-46.
Mattson L.-G. (1995). An application of a network approach to marketing: Defending and changing positions. In N. Dholakia, J. Arndt (Eds.), Changing the Course of Marketing: Alternative Paradigms for Widening Marketing Theory, JAI Press: Greenwich, 263-288.
Mediobanca-Unioncamere (2012). Le medie imprese industriali italiane – 2000-2009, Ufficio Studi Mediobanca e Centro Studi Unioncamere: Milano.
Mintzberg H. (1979). An Emerging Strategy of Direct Research. Administrative Science Quarterly, 24: 582-589.
Normann R. (2001). Reframing business: when the map changes the landscape. Wiley: Chichester.
Normann R., Ramirez R. (1998). Designing Interactive Strategy: from Value Chain to Value Constellation. Wiley: Chichester, NY.
Pablo A.L. (1994). Determinants of acquisition integration level: A decision-making perspective. Academy of Management Journal, 37: 803-836.
Pablo A.L., Javidan M. (2002). Thinking of a merger … Do you know their risk propensity profile?. Organizational Dynamics, 30 (3): 206-222.
Quah P., Young S. (2005). Post-acquisition Management. A phases approach for crossborder M&As. European Management Journal, 23 (1): 65-75.
Rock M.L. (ed) (1990). Fusioni ed acquisizioni. Aspetti finanziari, strategici ed organizzativi. McGraw Hill: Milano.
Searby F. W. (1969). Control postmerger change. Harvard Business Review. 47 (5): 4-11.
Shrivastava P. (1986). Postmerger integration. The Journal of Business Strategy, 7 (1): 65-76.
Thompson J.D. (1967). Organizations in Action. McGraw Hill: NY.
Ulaga W., Eggert A. (2006). Value-Based Differentiation in Business Relationships. Gaining and Sustaining Key Supplier Status. Journal of Marketing, 70 (1): 119-136.
Vaccà S. (1991). La grande impresa in transizione. Economia e Politica Industriale, 71.
Varaldo R. (2006). Il nuovo modello competitivo e aziendale dei distretti industriali. Economia e politica industriale, 1: 25-42.
Varaldo R., Dalli D., Resciniti R., Tunisini A. (a cura di) (2009). Un tesoro emergente. Le medie imprese italiane dell’era globale. Franco Angeli: Milano.
Walter A., Ritter T., Gemunden G. (2001). Value Creation in Buyer-Seller Relationships. Industrial Marketing Management, 30: 365-377.
Wittman C.M., Hunt S.D., Arnett D.B. (2009). Explaining alliances success: Competences, resources, relational factors and resource-advantage theory. Industrial Marketing Management, 38:743-756.
Yin R.K. (2003). Case study research, design and methods, 3rd ed. Sage Publications:Newbury Park.
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