Exploring the critical role of different routine connectors in post acquisition integration

M&A are considered as the key drivers of strategic growth (Angwin 2007) even though organizational performance studies continue to show that they underperform with approximately 50% failing (Schoenberg 2006). While contemporary thinking suggests that post acquisition integration is an important source of value creation (Haspeslagh and Jemison 1991), clear links between integration activities and post acquisition outcomes are yet to be made. Focusing on the sub organizational levels, this thesis uses organizational routines as the unit of analysis to unpack integration activities. Organizational routines are building blocks of capabilities (Winter 2003) that are critical to strategic advantage (Barney 1991). By conceptualising integration as an amalgamation of routines of two participating firms, this thesis aims to untangle interrelated routines and link these chains of routines to outcomes. Breaking away from the current norm of atomistic routine investigation, this thesis looks at interrelated routines and puts forward the concept of routine connectors that connect one routine to another. In other words, this work shows how routines are held together. Case studies are constructed from 18 integrations to explain how business functions such as operations or marketing are integrated. While doing so, the role of interconnected routines is examined for integration outcome. This thesis establishes the existence of routine connectors and their properties. Typology of connectors based on their function – vertical or horizontal, and nature –fixed or floating, is presented. The findings show that the floating connectors evolve over time and their tacit nature triggers unintended consequences during planned change initiatives. This thesis also shows that integration outcomes such as customer attrition or increase in costs are a result of misplaced or inappropriate connectors. As routines and their connectors are firm specific, this thesis shows that while prior acquisition experience matters, it does not influence integration outcomes. In addition to establishing the role of routine connectors for integration outcomes, this thesis opens up the black box of post acquisition integration.

Grantor dc:publisher

Oxford Brookes University

Year dc:date

2014

Author dc:creator

• Urs, Uma

Contributors dc:contributor

• Angwin, Duncan
• Handley, Karen

Statement dc:rights

• All rights reserved

Language dc:language

en

DOI dc:identifier

https://doi.org/10.24384/3bp3-s160

OAI identifier oai:identifier

tle:39e10023-be56-41c2-911e-8f64a718669b:d6bd9758-527a-46cd-bfe2-c433766e8fca:1