Business and Management
Oxford Brookes Business School
Phone number: 01865 485460
Location: CLC.1.20, Clerici Building, Headington Campus
Post-acquisition integration matters for overall M&A outcome. However within this phase researchers have struggled to identify clear links between integration activities and post-acquisition outcome. This may be due to using organisational levels of analysis, where sub-organisational issues serve to confound findings. In order to unpack the post-acquisition phase, and to delve more deeply into organisations, this paper adopts a more granular perspective on integration activities by focusing upon the building blocks of organisations. Specifically we investigate ordinary routine amalgamation and their impact upon meta-routine outcome during acquisition integration. Drawing upon two longitudinal integration cases and using ‘retroductive’ analysis, two types of amalgamation are identified, namely ‘combination’ and ‘superimposition’. We find that, while the basic nature of routines, such as multiplicity and nestedness, inhibit routine amalgamation, external interference in the form of context, structural change or introduction of additional routines is needed to stabilise amalgamated routines. From our findings we are able to suggest a number of testable propositions about the factors that influence the amalgamation of routines. This empirical study contributes to the M&A literature by opening up the ‘black box’ of post-acquisition integration by providing details at a granular level of what actually happens during integrations.
India is an important player regarding mergers and acquisitions (M&As) from emerging economy (EE) countries, both in terms of inward and outward foreign direct investment (FDI). After two consecutive years of decline, the gross value of cross-border M&A deals increased in 2014 by 34%, reaching US$900 billion. One key characteristic was the increasing amount of M&A deals with values larger than US$1 billion (World Investment Report 2015). Cross-border M&As from EEs, especially from China and India, have increased dramatically during the past decade (Bhagat et al. 2011; Sun et al. 2012; Nicholson and Salaber 2013). In 2014, multinational enterprises (MNEs) from developing economies alone invested US$468 billion abroad, which is a 23% increase on the previous year. According to the World Investment Report (2015), for the first time MNEs from developing Asia became the world’s largest investing group. The largest home economies for FDI in developing or transition economies were, among others, China, Hong Kong (China), Singapore, Brazil, India, Chile, Indonesia, and the Russian Federation. In India the FDI outflow increased fivefold to US$10 billion in 2014 (World Investment Report 2015).