Managing patterns of internationalization, integration, and identity transformation: The post-acquisition metamorphosis of an Arabian Gulf EMNC

Abstract

In this paper, we study the multifaceted transformation of an emerging market firm making multiple acquisitions. Drawing on a process study of an acquisitions program spanning two decades, we examine the post-acquisition internationalization, integration and organizational identity dynamics of an Arabian Gulf EMNC serial acquirer. We find that the serial acquisitions and post-acquisition integration were sufficiently profound and changing over time to create an organizational identity transformation in four phases: (1) diffusion, (2) consolidation, (3) restoration, and (4) reinvention. These phases further reflect an emergent business model centered on new resource allocations and innovation competencies as well as a new worldwide brand and revised value propositions. Our study enhances understanding of post-acquisition integration variations and programmatic expansion through acquisitions from emerging markets by proposing a post-acquisition metamorphosis perspective on internationalization from a region of the world relatively less-examined yet nevertheless of central economic importance from a global geopolitical resources perspective

Integration modes, global networks, and knowledge diffusion in overseas M&As by emerging market firms

“…However, in the presence of too much resource similarity between acquirer and target, especially in relation to market and product resources, granting too much target brand management autonomy will inevitably lead to the brands from the acquirer and target firm to compete for core resource, causing brand perception confusion in the original customers (Vũ et al, 2009). In this case, emerging market firms conducting international M&As should adopt unified global brand management strategies aimed at constructing coherent organizational identities (Park et al, 2018). In the presence of high levels of target brand autonomy and strong resource similarity, the target TMT tends to resist the changes brought about by restructuring (Zollo and Singh, 2004), to hinder effective control of the target resources by the acquirer firm, and to impede the acquirer from directly accessing heterogeneous network resources and improving its network position.…”

Playing a double game? Pursuing innovation through ambidexterity in an international acquisition program from the Arabian Gulf Region

“…Concomitant with the scope of the phenomenon, scholars of acquisition programs have changed the unit of analysis from single deals to acquisition programs (Chatterjee, ). While the learning and performance effects of acquisition programs have been studied (e.g., Barkema et al, ; Zollo and Singh, ), only more recently has attention been directed to the evolution of innovation in acquisition programs, for instance, through identifying and growing knowledge resources cumulatively (Capron and Mitchell, ) or through internationalization and identity transformation based in part on innovation capabilities enhanced in iterative acquisitions (Park et al, ). These findings signal the potential for innovation development in acquisition programs and call for delving further into the dynamics of acquisition program processes and outcomes.…”

“…Over time it has become apparent that any single acquisition cannot provide an ongoing innovation momentum. Scholars have consequently dedicated increasing attention to acquisition programs (Smit and Moraitis, 2010;Park et al, 2018;Weber et al, 2018). Beyond the impact of single deals, acquisition programs can further leverage innovation capabilities obtained from targets, from different countries, acquired at different times (Laamanen and Keil, 2008).…”

Corporate name change: Investigating South African multinational corporations' postacquisition performance

“…Recent works have explored the EMNC's engagement with the institutional complexity faced in the foreign markets (Agnihotri & Bhattacharya, 2018;Liu, Öberg, Tarba, & Xing, 2018;Muralidharan et al, 2017;Park, Meglio, Bauer, & Tarba, 2018). Research has shown postacquisition integration change over time and can lead to changes in the organizational identity.…”