Exploratory Research: supply chain integration during merger and acquisition
(2013) Exploratory Research: supply chain integration during merger and acquisition, no. 117.
Purpose - This paper aims to explain the benefits of effective supply chain management during merger and acquisition (M&A) in order to increase the success rate of M&A - an area which has little empirical research and which features contradictory findings. Design/methodology/approach - Seven semi-structured interviews were conducted with senior executive employees from the oil and gas, finance, bottling and fast moving consumer goods (FMCG) sectors. These interviews highlighted the influentional supply chain management factors when carrying out merger and acquisition activities. Findings - Three influential factors were identified; cultural managenment, the need for integrated systems and collaborative network creation. The motivations for M&A were also highlighted to unearth why this high risk strategy is attempted. It was identified that the cultural fit was the most important aspect in all merger and acquisitions experienced by the respondents. Research limitations/implications - This study provided generalisable data in order to be used as a catalyst for further research in M&A activity. Further studies will be required to highlight intricate entities to the integration of two organisations and aim to be industry specific. Practical implications - Documentation of M&A process and case studies would reveal the correct methods and behaviours required to suceed during M&A. Originality/value - As global competition increases understanding how to conduct merger and acquisition effectively could add competitive advantage and strengthen a companies position significantly.