An operations process framework for international M&A value creation. (28th January 2010)

• Record Type: Journal Article
• Authors: Srai, Jagjit Singh; Bertoncelj, Andrej; Fleet, Don; Gregory, Mike
• Is Part Of: European journal of international management. Volume 4:Number 1/2(2010)
• Page Start: 3
• Page End: 29
• Publication Date: 2010-01-28
• Subjects: international M&amp -- amp -- A -- mergers and acquisitions -- process maps -- value creation -- manufacturing -- supply networks -- operations integration -- resources optimisation -- supply chain resources; Management -- Periodicals; Organizational behavior -- Periodicals; International business enterprises -- Management -- Periodicals; Globalization -- Periodicals; 658.005
• Languages: English
• ISSNs: 1751-6757

Abstract

A framework for understanding the operational aspects of international Mergers and Acquisitions (M&As) is presented. Based on a literature review of the operational activities that support M&As, the key stages used in the integration of manufacturing and supply networks are captured from an operations perspective. In-depth case studies of international M&As are used to explore these phases and their supporting operational processes. The resulting process map is tested and further developed with a range of operational and non-operational stakeholders, those that play critical gate-keeping roles in M&A progression. Finally, a single integrating framework is proposed, that links the 'hard' and 'soft' management factors, with the operational factors that influence successful M&A integration, and how these contribute to value creation. The framework suggests that 'network access', i.e. markets, products, technology, know-how and 'network efficiency', i.e. optimisation of manufacturing and supply chain resources, provide the two principal routes to achieving operational synergy.