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Separation or Integration for Successful Acquisition?: A Comparative Study of Established and Emerging Economies' Firms
Linköping University, Department of Management and Engineering, Project Innovations and Entrepreneurship. Linköping University, Faculty of Science & Engineering. (Emerging Economies)ORCID iD: 0000-0002-3863-1073
Alliance Manchester Business School, University of Manchester, UK.
Linköping University, Department of Management and Engineering, Project Innovations and Entrepreneurship. Linköping University, Faculty of Science & Engineering. (PIE)ORCID iD: 0000-0002-4233-5138
2018 (English)In: Journal of Applied Economics and Business Research, E-ISSN 1927-033X, Vol. 8, no 1, p. 1-23Article in journal (Refereed) Published
Abstract [en]

Studies of the post-acquisition practices of established economy firms argue that integration is one of the most important factors that drives acquisition performance. Recent research suggests that firms from emerging economies may use different approaches in their acquisitions. However, there is a lack of studies of the post-acquisition strategies of emerging economy firms. This study presents an in-depth case study of the strategy of an emerging economy firm from a large business group after its acquisition of a classical brand-name company in a developed economy. Moreover, this strategy and its performance outcomes is compared with the strategy of the acquired firm´s previous owner, an established MNE from a leading OECD country. The study reveals that the emerging economy firm, Tata Motors, pursued a consistent separation strategy in all the investigated areas – human resource management, new product development, production, and marketing. Moreover, this separation strategy turned out to be much more successful than the integration strategy pursued by the previous owner, Ford Motors.

Place, publisher, year, edition, pages
Burnaby, Canada: Journal of Applied Economics and Business Research , 2018. Vol. 8, no 1, p. 1-23
Keywords [en]
Post-acquisition organization strategy, separation, integration, emerging economies firm, automotive industry, Tata, Ford
National Category
Business Administration
Identifiers
URN: urn:nbn:se:liu:diva-146278OAI: oai:DiVA.org:liu-146278DiVA, id: diva2:1195893
Projects
This work was supported by VINNOVA, Sweden´s national innovation agency (grant number: 2014-03388)
Funder
Vinnova, 2014-03388Available from: 2018-04-06 Created: 2018-04-06 Last updated: 2021-06-08Bibliographically approved

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Karabag, Solmaz FilizBerggren, Christian

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