Session 210

M&A/JV Implementation

Track H

Date: Monday, October 5, 2015

Track F

Time: 11:15 – 12:30

Common Ground

Room: Plaza Court 2


Facilitator:

  • Bruce Lamont, Florida State University

Title: Bridging Two Worlds: Middle Managers in the Context of Cross-border Acquisitions

Authors

  • Gustavo Birollo, HEC-Montreal

Abstract: M&As literature has largely considered middle managers as affected by the acquisition process but not as its constructors. In this work we argue that middle managers trough their interactions are an important variable to be consider when analyzing M&As outcomes.
We present a model where middle managers from both firms working at the acquired facility and droved by their necessity of exerting their strategy roles engage in an interactive process that shapes the acquisition intended strategy by adapting their content to the acquired context. Using a mix method we aim to demonstrate that this interaction is one of interdependency and not one of victim and victimizers and that, through this process, middle managers with their day-to-day decisions are also architects of the acquisition’s strategy.

Title: Impression Management in the Sale of Ongoing Firms

Authors

  • Rich Devine, Florida State University
  • Bruce Lamont, Florida State University
  • Reginald Harris, Florida State University

Abstract: Despite a vast amount of studies focusing on the determinants of acquisition premiums there is still much to understand. We know that deal tone, CEO characteristics, prestige, and investment banker affiliations among other factors affect acquisition premiums. However, although anecdotal evidence suggests that managers also use impression management tactics to raise their firms’ acquisition premiums. Drawing on impression management theory, the purpose of this study is to theoretically delineate and empirically examine the effectiveness of target firms’ use of the media in shaping the impressions of acquiring firm managers, as reflected in higher acquisition premiums. We find that impression management tactics only yield positive acquisition premiums when the acquirer can adequately evaluate the claims and when they appear credible due to visibly supportive actions.

Title: Integration Practices. Activity Patterns for Unlocking Synergy Potential in M&A

Authors

  • Svante Schriber, Stockholm Business School

Abstract: Integration processes are central for realizing strategic aims in M&A. However, existing process research gives precedence to firm-level contingencies and individual integration efforts at the expense of how integration processes evolve. This study aims at developing the processual aspects of how strategic aims are strived for in M&A integration. Based on M&A and strategy as practice theory it develops a framework for analyzing integration processes. Drawing on detailed longitudinal qualitative data from two acquisitions, three distinct integration practices tied to distinct synergistic aims are identified. This study makes a threefold contribution to integration theory by advancing a processual view of M&A integration, by increasing the level of granularity in M&A integration theory, and by increasing attention to materiality in M&A integration.

Title: Negotiating Acquisition Premiums: The Role of Acquirer Trust

Authors

  • Heather Parola, Florida Atlantic University
  • Kimberly Ellis, Florida Atlantic University

Abstract: Why do acquiring firms continually overpay for target firms? In order to answer this question, we consider the relational aspects of the acquiring firm and target firm during the deal negotiations. Specifically, we look to uncover the role of acquirer trust in the target firm through an integration of agency theory and the social embeddedness perspective. Overall, we hypothesize that acquirer trust increases premiums as negotiations shift toward synergy identification over contractual obligations. Additionally, we consider both environmental factors and firm level factors that strengthen or weaken this relationship. Through our discussion, a contribution is made to the nascent literature on M&A negotiations, as well as the complex role of interorganizational trust in M&As.

Title: Organizations’ Attempt to Combine Complementary Capabilities: A case study of acquisition implementation process

Authors

  • Xavier Castaner, University of Lausanne
  • Güldem Karamustafa, Sustainability Management School
  • Jeff Davis, Molio Inc.

Abstract: This study focused on why acquirers struggle in leveraging and combining the unique capability of the target with acquirer capabilities to create value. Our in-depth case study reveals that when the target is dissimilar to the acquirer or to previous targets of the acquirer, acquirer’s implementation managers rely on analogies from prior experiences which reduce the perceived differences and increase acquirer managers’ overconfidence leading to acquirer’s mis-imposition of its practices. Our study contributes to the M&A literature highlighting analogical reasoning as a mechanism triggering acquirers’ mis-imposition of their practices and dominant logic. More broadly, this study contributes to the studies of organization and management pointing the risks of analogies for learning (understanding a partly new, unfamiliar context), and thus limiting absorptive capacity.

Title: Top Level Management Diversity and Firm Performance in Sino-Foreign Joint Ventures: Moderating Role of State Ownership

Authors

  • Frank Lam, Yew Chung Education Foundation
  • Siggi Gudergan, University of Newcastle
  • Brendan Boyle, University of Newcastle

Abstract: This paper examines the effects of both top management team (TMT) and board of directors (BOD) diversity on Sino-foreign joint venture (JVs) performance, conditional on state ownership. Based on an analysis of 137 JVs listed in China, the study shows that international experience diversity in the BOD is positively associated with firm performance, whereas neither nationality diversity in the BOD and the TMT nor international experience diversity in the TMT affects performance. Furthermore, state ownership within these JVs strengthens the effect of BOD international experience diversity on firm performance. Consequently, an understanding of firm performance not only requires separate consideration of the TMT and BOD, but also attention to the ownership constellation, especially in emerging economies such as China.

All Sessions in Track H...

Sun: 08:00 – 09:15
Session 22: On Boxes, Arrows and Multiple Case Studies
Sun: 09:45 – 11:00
Session 23: Simple Rules and Other Seminal Contributions
Sun: 11:15 – 12:30
Session 24: Tribute to Kathleen Eisenhardt
Sun: 16:15 – 17:30
Session 113: Serial Acquisitions: Strategies and Processes
Session 154: Processes of Capability Development, Rejuvenation and Erosion and their Interplay with Strategy
Sun: 17:45 – 00:00
Session 316: Strategy Process Business Meeting
Mon: 08:00 – 09:15
Session 162: Strategy Formation Processes
Mon: 11:15 – 12:30
Session 210: M&A/JV Implementation
Mon: 13:45 – 15:00
Session 169: The Role of Attention in Organizational Processes (Evaluation, Promotion, Innovation and Growth)
Mon: 16:45 – 18:00
Session 134: Leading change implementation processes
Tue: 08:00 – 09:15
Session 135: Micro-processes for developing dynamic capabilities
Session 212: Initiative Generation, Opportunity Sensing, Decision and Change Processes: The Role of Context and Cognition
Session 255: Processes for Innovation and Ideation
Tue: 11:00 – 12:15
Session 211: Cognition, Discourse and Innovation Dynamics within and across Organizations
Tue: 14:15 – 15:30
Session 275: External Interface Processes and their Consequences
Tue: 17:30 – 18:45
Session 165: Strategic Change: The Role of Cognition and Affect/Emotions

All Sessions in Track F...

Sun: 08:00 – 09:15
Session 193: Phenomenon-driven Research in Strategic Management
Sun: 09:45 – 11:00
Session 221: Reflecting on the scope of the firm: New avenues for future research
Sun: 11:15 – 12:30
Session 194: The State and Future of Disciplinary Research in Strategic Management
Sun: 16:15 – 17:30
Session 113: Serial Acquisitions: Strategies and Processes
Sun: 17:45 – 00:00
Session 314: Corporate Strategy Business Meeting
Mon: 08:00 – 09:15
Session 111: Portfolio Management: Diversification and Divestitures
Session 176: Different Perspectives Informing Governance Choices: Partner Choice in Alliances vs. Acquisitions
Mon: 11:15 – 12:30
Session 195: Where Are the Boundaries of Strategic Management Research?
Session 210: M&A/JV Implementation
Mon: 16:45 – 18:00
Session 112: Acquisitions - Before the Deal
Session 243: Competitive Dynamics and Market Positioning
Tue: 08:00 – 09:15
Session 115: Horizontal and Vertical Scope: Interactions and Embeddedness
Session 272: Competitive Dimensions of Firm Boundary and Location Decisions
Tue: 11:00 – 12:15
Session 117: Issues and Answers for the Diversified Firm
Session 145: Strategic Leadership and Corporate Strategy
Tue: 14:15 – 15:30
Session 58: Corporate VCs and spin-outs
Session 116: Acquisitions - After the Deal
Session 267: Healthcare Industry Dynamics, Relationships, and Activities
Tue: 15:45 – 17:00
Session 110: Models of Corporate Strategies
Tue: 17:30 – 18:45
Session 114: The Interplay Between Financial Markets & Advisors and the Acquiring Firm
Session 271: Spinouts


Strategic Management Society

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