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Acquisitions and network identity change

Öberg, Christina LU ; Grundström, Christina and Jönsson, Petter (2011) In European Journal of Marketing 45(9). p.1470-1500
Abstract (Swedish)
Abstract in Undetermined

Purpose - The purpose of the paper is to discuss whether or not an acquisition changes the network identity of an acquired firm and, if so, how. This study aims to bring new insights to the corporate marketing field, as it examines corporate identity in the context of how a company is perceived because of its relationships with other firms. The focus of this research is acquired innovative firms.



Design/methodology/approach - This paper adopts a multiple case study approach. Data on four acquisitions of innovative firms were collected using 41 interviews, which were supplemented with secondary data.



Findings - Based on the case studies, it can be concluded... (More)
Abstract in Undetermined

Purpose - The purpose of the paper is to discuss whether or not an acquisition changes the network identity of an acquired firm and, if so, how. This study aims to bring new insights to the corporate marketing field, as it examines corporate identity in the context of how a company is perceived because of its relationships with other firms. The focus of this research is acquired innovative firms.



Design/methodology/approach - This paper adopts a multiple case study approach. Data on four acquisitions of innovative firms were collected using 41 interviews, which were supplemented with secondary data.



Findings - Based on the case studies, it can be concluded that the network identity of the acquired firms does change following an acquisition. The acquired firms inherited the acquirers' identity, regardless of whether or not the companies were integrated. Previous, present and potential business partners regarded the innovative firms as being more solvent, but distanced themselves. In addition, some of them regarded the innovative firms as competitors.



Practical implications - Changes in the way a firm is perceived by its business partners, following an acquisition, will influence the future business operations of the firm. Expected changes to business relationships should ideally be considered part of due diligence. Acquirers need to consider how they can minimise the risks associated with business partners' changed perceptions of acquired firms.



Originality/value - This paper contributes to the research on identity, through discussion of the consequences of an acquisition for the identity and relationships of a firm. It also contributes to the existing corporate marketing literature, through consideration of perceptions at a network level. Furthermore, this paper contributes to merger and acquisition literature, by highlighting the influence of ownership on relationships with external parties. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Corporate identity, Acquisitions and mergers, Corporate marketing, Corporate branding, Business-to-business marketing, Organisational identity
in
European Journal of Marketing
volume
45
issue
9
pages
1470 - 1500
publisher
Emerald Group Publishing Limited
external identifiers
  • wos:000297238500008
  • scopus:79957662598
ISSN
0309-0566
DOI
10.1108/03090561111151853
language
English
LU publication?
yes
id
7cfa8a27-1c1d-4bfd-99a4-756b4a1d946a (old id 1939602)
date added to LUP
2011-05-09 14:20:39
date last changed
2017-09-17 04:14:27
@article{7cfa8a27-1c1d-4bfd-99a4-756b4a1d946a,
  abstract     = {<b>Abstract in Undetermined</b><br/><br>
Purpose - The purpose of the paper is to discuss whether or not an acquisition changes the network identity of an acquired firm and, if so, how. This study aims to bring new insights to the corporate marketing field, as it examines corporate identity in the context of how a company is perceived because of its relationships with other firms. The focus of this research is acquired innovative firms. <br/><br>
<br/><br>
Design/methodology/approach - This paper adopts a multiple case study approach. Data on four acquisitions of innovative firms were collected using 41 interviews, which were supplemented with secondary data. <br/><br>
<br/><br>
Findings - Based on the case studies, it can be concluded that the network identity of the acquired firms does change following an acquisition. The acquired firms inherited the acquirers' identity, regardless of whether or not the companies were integrated. Previous, present and potential business partners regarded the innovative firms as being more solvent, but distanced themselves. In addition, some of them regarded the innovative firms as competitors. <br/><br>
<br/><br>
Practical implications - Changes in the way a firm is perceived by its business partners, following an acquisition, will influence the future business operations of the firm. Expected changes to business relationships should ideally be considered part of due diligence. Acquirers need to consider how they can minimise the risks associated with business partners' changed perceptions of acquired firms. <br/><br>
<br/><br>
Originality/value - This paper contributes to the research on identity, through discussion of the consequences of an acquisition for the identity and relationships of a firm. It also contributes to the existing corporate marketing literature, through consideration of perceptions at a network level. Furthermore, this paper contributes to merger and acquisition literature, by highlighting the influence of ownership on relationships with external parties.},
  author       = {Öberg, Christina and Grundström, Christina and Jönsson, Petter},
  issn         = {0309-0566},
  keyword      = {Corporate identity,Acquisitions and mergers,Corporate marketing,Corporate branding,Business-to-business marketing,Organisational identity},
  language     = {eng},
  number       = {9},
  pages        = {1470--1500},
  publisher    = {Emerald Group Publishing Limited},
  series       = {European Journal of Marketing},
  title        = {Acquisitions and network identity change},
  url          = {http://dx.doi.org/10.1108/03090561111151853},
  volume       = {45},
  year         = {2011},
}