Cross-Business Information Technology Integration and Acquirer Value Creation in Corporate Mergers and Acquisitions

Published Online:https://doi.org/10.1287/isre.1090.0250

References

  • Accenture Keys to the kingdom: How an integrated IT capability can increase your odds of M&A success. (2002) . Report, Accenture, New YorkGoogle Scholar
  • Aiken L. S., West S. G.Multiple Regression: Testing and Interpreting Interactions (1991) (Sage Publications, Newbury Park, CA) Google Scholar
  • Andrade G., Mitchell M., Stafford E. New evidence and perspectives on mergers. J. Econom. Perspect. (2001) 15(2):103–120CrossrefGoogle Scholar
  • Applegate L. M., Watson E., Vatz M. E. Royal DSM N.V.: Information technology enabling business transformation. (2007) . HBS Case 9-807-167, Harvard Business School, BostonGoogle Scholar
  • Barber B. M., Lyon J. D. Detecting abnormal operating performance: The empirical power and specification of test statistics. J. Financial Econom. (1996) 41(3):359–399CrossrefGoogle Scholar
  • Barki H., Pinsonneault A. A model of organizational integration, implementation effort, and performance. Organ. Sci. (2005) 16(2):165–179LinkGoogle Scholar
  • Barney J. B. Returns to bidding firms in mergers and acquisitions. Please check.—Reconsidering the relatedness hypothesis. Strategic Management J. (1988) 9:71–78CrossrefGoogle Scholar
  • Bowen T. S. Plugging IT into the merger equation. Computerworld (2002) . Accessed December 22, 2009, http://www.computerworld.com.au/article/96107/plugging_it_into_merger_equation/Google Scholar
  • Brown C. V. Horizontal mechanisms under differing IS organization contexts. MIS Quart. (1999) 23(3):421–454CrossrefGoogle Scholar
  • Brown S. J., Warner J. B. Measuring security price performance. J. Financial Econom. (1980) 8(3):205–258CrossrefGoogle Scholar
  • Brown S. J., Warner J. B. Using daily stock returns—The case of event studies. J. Financial Econom. (1985) 14(1):3–31CrossrefGoogle Scholar
  • Brown C. V., Clancy G., Scholer R. A post-merger IS integration success story: Sallie Mae. MIS Quart. Executive (2003) 2(1):15–27Google Scholar
  • Campbell A., Goold M.Synergy: Why Links Between Business Units So Often Fail and How to Make Them Work (1998) (Capstone Publishing, Oxford, UK) Google Scholar
  • Capron L., Pistre N. When do acquirers earn abnormal returns? Strategic Management J. (2002) 23(9):781–794CrossrefGoogle Scholar
  • Chatterjee S. Types of synergy and economic value—The impact of acquisitions on merging and rival firms. Strategic Management J. (1986) 7(2):119–139CrossrefGoogle Scholar
  • Chin W. W., Marcolin B. L., Newsted P. R. A partial least squares latent variable modeling approach for measuring interaction effects: Results from a Monte Carlo simulation study and an electronic-mail emotion/adoption study. Inform. Systems Res. (2003) 14(2):189–217LinkGoogle Scholar
  • Coff R. W. How buyers cope with uncertainty when acquiring firms in knowledge-intensive industries: Caveat emptor. Organ. Sci. (1999) 10(2):144–161LinkGoogle Scholar
  • Cortina J. M., Chen G., Dunlap W. P. Testing interaction effects in LISREL: Examination and illustration of available procedures. Organ. Res. Methods (2001) 4(4):324–360CrossrefGoogle Scholar
  • Curtis G. A., Chanmugam R. Reconcilable differences: IT and post-merger integration. Outlook (2005) 2(June):81–85Google Scholar
  • Dess G. G., Beard D. W. Dimensions of organizational task environments. Admin. Sci. Quart. (1984) 29(1):52–73CrossrefGoogle Scholar
  • Duthoit C., Dreischmeier R., Kennedy S.Clusters and Nuggets: Mastering Postmerger IT Integration in Banking (2004) (Boston Consulting Group, Boston) Google Scholar
  • Duvall M. Bank of America: When systems don't merge. eWeek (2003) . Accessed December 22, 2009, http://www.eweek.com/c/a/IT-Infrastructure/Bank-of-America-When-Systems-Dont-MergeGoogle Scholar
  • Farjoun M. Beyond industry boundaries: Human expertise, diversification and resource-related industry groups. Organ. Sci. (1994) 5(2):185–199LinkGoogle Scholar
  • Feeny D. F., Willcocks L. P. Core IS capabilities for exploiting information technology. Sloan Management Rev. (1998) 39(3):9–21Google Scholar
  • Fuller K., Netter J., Stegemoller M. What do returns to acquiring firms tell us? Evidence from firms that make many acquisitions. J. Finance (2002) 57(4):1763–1793CrossrefGoogle Scholar
  • Giacomazzi F. C., Pernici P. B., Sansoni M. Information systems integration in mergers and acquisitions: A normative model. Inform. Management (1997) 32(6):289–302CrossrefGoogle Scholar
  • Haleblian J., Finkelstein S. The influence of organizational acquisition experience on acquisition performance: A behavioral learning perspective. Admin. Sci. Quart. (1999) 44(1):29–56CrossrefGoogle Scholar
  • Harrison J. S., Hitt M. A., Hoskisson R. E., Ireland R. D. Synergies and postacquisition performance—Differences versus similarities in resource allocations. J. Management (1991) 17(1):173–190CrossrefGoogle Scholar
  • Harrison J. S., Hitt M. A., Hoskisson R. E., Ireland R. D. Resource complementarity in business combinations: Extending the logic to organizational alliances. J. Management (2001) 27(6):679–690CrossrefGoogle Scholar
  • Hayward M. L. A. When do firms learn from their acquisition experience? Evidence from 1990–1995. Strategic Management J. (2002) 23(1):21–39CrossrefGoogle Scholar
  • Hitt M. A., Ireland R. D., Harrison J. S., Hitt M. A., Ireland R. D., Harrison J. S. Mergers and acquisitions: A value creating or value destroying strategy? The Blackwell Handbook of Strategic Management (2001) (Blackwell Publishers, Malden, MA) 384–408Google Scholar
  • Homburg C., Bucerius M. Is speed of integration really a success factor of mergers and acquisitions? An analysis of the role of internal and external relatedness. Strategic Management J. (2006) 27(4):347–367CrossrefGoogle Scholar
  • Johnston K. D., Yetton P. W. Integrating information technology divisions in a bank merger—Fit, compatibility and models of change. J. Strategic Inform. Systems (1996) 5(3):189–211CrossrefGoogle Scholar
  • King D. R., Dalton D. R., Daily C. M., Covin J. G. Meta-analyses of post-acquisition performance: Indications of unidentified moderators. Strategic Management J. (2004) 25(2):187–200CrossrefGoogle Scholar
  • Larsson R., Finkelstein S. Integrating strategic, organizational, and human resource perspectives on mergers and acquisitions: A case survey of synergy realization. Organ. Sci. (1999) 10(1):1–26LinkGoogle Scholar
  • Main T. J., Short J. E. Managing the merger—Building partnership through IT planning at the new Baxter. MIS Quart. (1989) 13(4):469–484CrossrefGoogle Scholar
  • Markus M. L. Paradigm shifts—e-business and business/systems integration. Comm. Assoc. Inform. Systems (2000) 4(10):1–45Google Scholar
  • Marsh H. W., Hocevar D. Application of confirmatory factor analysis to the study of self-concept: First and higher order factor models and their invariance across groups. Psych. Bull. (1985) 97:562–582CrossrefGoogle Scholar
  • McKiernan P., Merali Y. Integrating information-systems after a merger. Long Range Planning (1995) 28(4):54–62CrossrefGoogle Scholar
  • McWilliams A., Siegel D. Event studies in management research: Theoretical and empirical issues. Acad. Management J. (1997) 40(3):626–657CrossrefGoogle Scholar
  • Mehta M., Hirschheim R. Strategic alignment in mergers and acquisitions: Theorizing IS integration decision making. J. Assoc. Inform. Systems (2007) 8(3):143–174Google Scholar
  • Merali Y., McKiernan P. The strategic positioning of information systems in post-acquisition management. J. Strategic Inform. Systems (1993) 2(2):105–124CrossrefGoogle Scholar
  • Meyer R. M., Rukstad G., Coughlan P. J., Jansen S. A. Daimler Chrysler post-merger integration (a). (2005) . HBS Case 9-703-417, Harvard Business School, BostonGoogle Scholar
  • Milgrom P., Roberts J. The economics of modern manufacturing: Technology, strategy, and organization. Amer. Econom. Rev. (1990) 80(3):511–528Google Scholar
  • Moeller S. B., Schlingemann F. P., Stulz R. M. Firm size and the gains from acquisitions. J. Financial Econom. (2004) 73(2):201–228CrossrefGoogle Scholar
  • Moeller S. B., Schlingemann F. P., Stulz R. M. Wealth destruction on a massive scale? A study of acquiring-firm returns in the recent merger wave. J. Finance (2005) 60(2):757–782CrossrefGoogle Scholar
  • Pablo A. L. Determinants of acquisition integration level—A decision-making perspective. Acad. Management J. (1994) 37(4):803–836CrossrefGoogle Scholar
  • Petter S., Straub D., Rai A. Specifying formative constructs in information systems research. MIS Quart. (2007) 31(4):623–656CrossrefGoogle Scholar
  • Popovich S. G. Meeting the pressures to accelerate IT integration. Mergers Acquisitions (2001) 36(12):30–35Google Scholar
  • Powell W. W., DiMaggio P. J.The New Institutionalism in Organizational Analysis (1991) (University of Chicago Press, Chicago) CrossrefGoogle Scholar
  • Robbins S. S., Stylianou A. C. Post-merger systems integration: The impact on IS capabilities. Inform. Management (1999) 36(4):205–212CrossrefGoogle Scholar
  • Seth A. K., Song P., Pettit R. Synergy, managerialism or hubris? An empirical examination of motives for foreign acquisitions of US firms. J. Internat. Bus. Stud. (2000) 31(3):387–405CrossrefGoogle Scholar
  • Shay D. PricewaterhouseCoopers presentation to the Federal Trade Commission on issues in post-merger integration. (2002) . Hearing (April 23), Federal Trade Commission, Washington, DCGoogle Scholar
  • Shearer B. Avoiding the IT integration blues. Mergers Acquisitions: Dealermaker's J. (2004) 39(11):10–15Google Scholar
  • Strassmann P. A. Mergers and the myth of synergy. (2003) . Reed Business Information. Accessed December 22, 2009, http:// www.computerweekly.com/Articles/2003/08/04/196366/Mergers-and-the-myth-of-synergy.htmGoogle Scholar
  • Stylianou A. C., Jeffries C. J., Robbins S. S. Corporate mergers and the problems of IS integration. Inform. Management (1996) 31(4):203–213CrossrefGoogle Scholar
  • Sumi T., Tsuruoka M. Ramp new enterprise information systems in a merger & acquisition environment: A case study. J. Engrg. Tech. Management (2002) 19(1):93–104CrossrefGoogle Scholar
  • Tanriverdi H. Information technology relatedness, knowledge management capability, and performance of multibusiness firms. MIS Quart. (2005) 29(2):311–334CrossrefGoogle Scholar
  • Tanriverdi H. Performance effects of information technology synergies in multibusiness firms. MIS Quart. (2006) 30(1):57–77CrossrefGoogle Scholar
  • Tanriverdi H., Venkatraman N. Knowledge relatedness and the performance of multibusiness firms. Strategic Management J. (2005) 26(2):97–119CrossrefGoogle Scholar
  • Thibodeau P., Tennant D. HP's CIO details ERP migration issues. Computerworld (2004) . Accessed December 22, 2009, http://www.computerworld.com/s/article/96049/Q_A_HP_s_CIO_ details_company_s_ERP_migration_problemsGoogle Scholar
  • Tippins M. J., Sohi R. S. IT competency and firm performance: Is organizational learning a missing link? Strategic Management J. (2003) 24(8):745–761CrossrefGoogle Scholar
  • Useem M., Harder J. Leading laterally in company outsourcing. Sloan Management Rev. (2000) 41(2):25–36Google Scholar
  • Venkatraman N. Performance implications of strategic coalignment: A methodological perspective. J. Management Stud. (1990) 27(1):19–41CrossrefGoogle Scholar
  • Vermeulen F., Barkema H. Learning through acquisitions. Acad. Management J. (2001) 44(3):457–476CrossrefGoogle Scholar
  • Vielba F., Vielba C.Reducing the M&A Risks: The Role of IT in Mergers and Acquisitions (2006) (Palgrave Macmillan, New York) CrossrefGoogle Scholar
  • Watson J. Bank reaps benefits of integration plan. Computing (2003) September 25):18Google Scholar
  • Weber Y., Pliskin N. The effects of information systems integration and organizational culture on a firm's effectiveness. Inform. Management (1996) 30(2):81–90CrossrefGoogle Scholar
  • White H. A heteroscedasticity-consistent covariance matrix estimator and a direct test for heteroscedasticity. Econometrica (1980) 48:817–838CrossrefGoogle Scholar
  • Wijnhoven F. T., Stegwee S. R., Fa R. T. A. Post-merger IT integration strategies: An IT alignment perspective. J. Strategic Inform. Systems (2006) 15(1):5–28CrossrefGoogle Scholar
  • Witney G., Boss N. Involve IT from the start to ease pain of mergers and acquisitions. Comput. Weekly (2004) . Accessed December 22, 2009, http://www.computerweekly.com/Articles/ 2004/10/12/205791/Involve-IT-from-the-start-to-ease-pain-of-mergers-and.htmGoogle Scholar
  • Worthen B. Success factors for integrating IT systems after a merger. CIO Magazine (2002) . Accessed December 22, 2009, http://www.cio.com/article/31272/Success_Factors_for_Integrating_IT_Systems_After_a_MergerGoogle Scholar
  • Wübben B.German Mergers and Acquistions in the USA (2007) (Deutscher Universitäts-Verlag, Wiesbaden, Germany) Google Scholar
  • Zollo M., Singh H. Deliberate learning in corporate acquisitions: Post-acquisition strategies and integration capability in US bank mergers. Strategic Management J. (2004) 25(13):1233–1256CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.