Business disruptions and affective reactions: A strategy-as-practice perspective on fast strategic decision making

Netz, Joakim; Svensson, Martin; Brundin, Ethel

doi:10.1016/j.lrp.2019.101910

Cited by 36 publications

(28 citation statements)

References 102 publications

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“…T -Time of Integration -The time or speed of the knowledge-sharing process and integration of core competencies may be a very important factor for successful acquisitions in generating synergy. It has been empirically tested that the longer the integration process takes before operations start running in a normal way, the fewer the chances the acquisition has of being successful (Netz et al, 2019;Spanner et al, 1993).…”

Section: Research Design and Methodologymentioning

confidence: 99%

Brazilian Natura & Co: creating cosmetic powerhouse. Empirical evidence of competence-based synergies in M&A processes

Čirjevskis

2020

ARLA

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PurposeThis paper aims to operationalize and to test the ARCTIC (A – Advantage, R – Relatedness, C – Complexity of Competence, T – Time of Integration, I – Implementation Plan, C – Cultural Fit) framework to assess the prerequisites of competence-based synergy in the acquisition process. The current research provides new analyses of recent acquisitions in the global beauty industry where the ARCTIC framework was satisfied and where the ARCTIC model was NOT satisfied by decisive factors to get the acquisition's synergies. It allows readers to contrast two case studies and grasp how the framework works in greater detail.Design/methodology/approachThe current research relies on an extensive archival search that included financial statements, annual reports, internal documents, industry publications and CEO statements to get at a micro-level understanding. This boosts research data and the operationalization of the ARCTIC framework.FindingsThe research identified four steps for investigating whether core competence transfer in an acquisition process would be a source of competence-based synergies. The incorporation of real options into the synergy valuation measures market value-added arising from M&A deals.Originality/valueThe current paper contributes to theoretical and practical issues of global M&As as part of the existing literature of international business and strategic management. The impact on reciprocal synergies of agency problems, external interaction between CEOs in M&A deals, corporate governance systems and an executive compensation theory are promising areas of future research.

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Section: Research Design and Methodologymentioning

confidence: 99%

Brazilian Natura & Co: creating cosmetic powerhouse. Empirical evidence of competence-based synergies in M&A processes

Čirjevskis

2020

ARLA

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“…While SDS has attracted substantial attention in the literature (Baum and Wally 2003;Dykes et al 2019;Forbes 2005;Judge and Miller 1991;Netz et al 2019), the jury seems to be still out concerning its direct effect on firms' performance, especially in international markets (García-García et al 2017). Thus, in general, the review shows that the two main schools have been integrated by scholars to explain how the pace of decision-making relates to firms' performance.…”

Section: Strategic Decision-making Decision Speed and Outcomesmentioning

confidence: 99%

“…Moreover, decision speed remains a crucial factor in determining firms' ability to capitalize on market opportunities in dynamic environments (Baum and Wally 2003;Dykes and Kolev 2018;Wu et al 2017). However, while our understanding of SDS and its impact on organizational performance has improved following increasing scholarly attention (Baum and Wally 2003;Dykes et al 2019;Forbes 2005;Judge and Miller 1991;Netz et al 2019), we only have a partial understanding of how and when SDS effectively influences firms' international performance.…”

Section: Introductionmentioning

confidence: 99%

“…This study contributes to the international business literature in two main ways. First, the focus on the role of speedy decisions in SMEs' international performance in a developing country context extends the literature because this perspective is mainly built on evidence from developed market firms (Baum and Wally 2003;Forbes 2005;García-García et al 2017;Netz et al 2019). Generally, developed economy firms possess more resources (e.g., research and innovation capabilities) and operate in more benevolent external conditions.…”

Section: Introductionmentioning

confidence: 99%

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Strategic Decision Speed and International Performance: The Roles of Competitive Intensity, Resource Flexibility, and Structural Organicity

et al. 2021

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Based on insights from the decision-making and contingency theories, this study examined the influence of strategic decision speed (SDS) on the international performance of small and medium-sized enterprises (SMEs), and explored the conditions under which SDS effectively drives international performance. We tested our model using structural equation modeling using a sample of 212 SMEs involved in crossborder activities. First, the results show that fast decision-making is associated with greater international performance of SMEs. Second, the analyses suggest that the relationship between SDS and international performance is amplified for organically structured SMEs, and those operating in highly competitive environments. In addition, the outcomes revealed that SDS is more positively related to international performance at greater levels of flexible internal resources. These results have important theoretical and practical implications for the international business literature.

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“…If valuable and rare core competencies take time to absorb, then the answer is "No". Thus, if core competencies' transfers take a relatively short time (Netz et al 2019;Spanner et al 1993) when fast strategic decision making is involved, then the answer for this criterion is "Yes". This is the fourth factor of the synergy potential of the M&A process.…”

Section: Competence-based Synergy Testing In Mandas With the Arctic Research Framework: An Approachmentioning

confidence: 99%

Valuing Reciprocal Synergies in Merger and Acquisition Deals Using the Real Option Analysis

Čirjevskis

2020

Administrative Sciences

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This research explores how global cosmetic players sense emerging market demand for new technologies and products, seize opportunities through the acquisition of core competencies that they needed, and transform their global value chain. The aim of this paper to assess the prerequisites of reciprocal synergies in merger and acquisition (M&A) deals pursuing global growth. To achieve this aim, the author asked a research question: what is the best way to measure the competence-based synergies as added market value in M&A deals? To answer this question, the author researched the latest theoretical findings on the antecedents of synergy in the merger and acquisition processes. The valuation of reciprocal synergies with real options was discussed with a focus on input variables’ values. Based on in-depth content analysis, the ARCTIC (A—Advantage, R—Relatedness, C—Complexity of Competence, T—Time of Integration, I—Implementation Plan, C—Cultural Fit) framework was developed and tested. The author selected three case studies to test the methodology empirically, namely, L’Oréal’s Body Shop acquisition in 2006 and divestiture in 2017, the acquisition of The Body Shop by Brazilian’s Natura Group in 2017, and the acquisition of Avon Products by Natura that was announced in 2019. The model for the valuation of reciprocal synergies used and discussed real options with a special focus on input variables’ values.

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Business disruptions and affective reactions: A strategy-as-practice perspective on fast strategic decision making

Cited by 36 publications

References 102 publications

Brazilian Natura & Co: creating cosmetic powerhouse. Empirical evidence of competence-based synergies in M&A processes

Brazilian Natura & Co: creating cosmetic powerhouse. Empirical evidence of competence-based synergies in M&A processes

Strategic Decision Speed and International Performance: The Roles of Competitive Intensity, Resource Flexibility, and Structural Organicity

Valuing Reciprocal Synergies in Merger and Acquisition Deals Using the Real Option Analysis

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