Getting post-M&A integration mechanisms tuned in to technological relatedness and innovation synergy realisation

Abstract

Studies on Mergers and Acquisitions (M&A) typically relate innovation synergies to either context characteristics or post-M&A integration. There is little research on how to tune the relevant practices to the benefit of realising specific innovation synergies. It is the purpose of this paper to develop a conceptual framework on innovation synergy realisation in large M&As, that relates the following components: (1) strategic M&A characteristics; and (2) post-M&A integration mechanisms; to (3) innovation synergy realisation. The research explored how different innovation synergies were achieved in nine large medium-tech and high-tech M&As in the life sciences. From this case studies research, it turns out that higher degrees of technological relatedness allow for the realisation of more types of innovation synergy, brought about by the more demanding integration mechanisms structural linking and process re-design. ARTICLE HISTORY

Determinant Factors of M&As in Emerging Economies: The Impact of Financial Performance in Romanian Minority Acquisitions

“…In this context, the target company accounting figures may justify the opportunity of an investment in terms of profitability and revenues that reflect the M&A success (Rozen-Bakher 2017;Sirower and Lipin 2003). Seeing the synergy success in terms of revenue increase is more of a managerial approach than an accounting one, given the fact that the decrease in costs may also lead to profitability in terms of accounting statements, but the revenue increasing may be connected to increase in market share (Bauer and Matzler 2013) or in innovation (Wubben et al 2016;Aevoae et al 2019). Also, the success of an M&A can be assessed through the degree in which the financial targets are met in a time frame, established during the pre-acquisition phase, in terms of expected returns and costs (Dilshad 2012).…”

Cross-cultural competence and social capital dynamic process in cross-border M&A, a theoretical framework based on a multi-case study

“…After M&A, enterprises are supposed to take appropriate steps for integration so they can achieve a synergistic effect in production factors on both sides. This can realise the optimal use of resources and finally meet the goal of M&A (Larsson and Finkelstein, 1999; Wubben et al , 2016). It is perceived that in the process of forming a new organisation, the original corporate structure has changed.…”