Abstract
While world-wide Mergers and Acquisitions (M&As) activity continues to accelerate, a substantial proportion of deals fails to yield the expected value. The inability to plan and implement post-merger integration of information technology contributes substantially to these failure rates. This paper advances the argument that a company’s pre-existing Enterprise Architecture decisively shapes the capability to implement post-merger IT integration and subsequently realize benefits from M&A. Our multiple-case study investigates three acquisition cases and develops an explanatory theory of how Enterprise Architecture maturity enables the implementation of distinct integration strategies. The results do not only enrich the academic literature on M&A, but also show the strategic value of Enterprise Architecture maturity.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Thomson Reuters: Mergers & Acquisitions Review - Financial Advisors - Full Year 2015 (2016). http://share.thomsonreuters.com/general/PR/MA-4Q15-(E).pdf
Grant, R.M.: Contemporary Strategy Analysis: Text and Cases Edition. Wiley, Hoboken (2016)
Deloitte: M&A trends report 2014 (2014)
Weber, Y.: A Comprehensive Guide to Mergers & Acquisitions: Managing the Critical Success Factors Across Every Stage of the M&A Process. FT Press, Upper Saddle River (2013)
El Sawy, O.A.: The IS Core IX: The 3 faces of IS identity: connection, immersion, and fusion. Commun. Assoc. Inf. Syst. 12, 39 (2003)
Sarrazin, H., West, A.: Understanding the strategic value of IT in M&A. McKinsey Q. 12, 1–6 (2011)
Bank, D.: Press Release - Decline in profit due to integration expenses (2008)
Deloitte: Integration report 2015 - Putting the pieces together (2015)
Wijnhoven, F., Spil, T., Stegwee, R., Fa, R.T.A.: Post-merger IT integration strategies: an IT alignment perspective. J. Strateg. Inf. Syst. 15, 5–28 (2006)
Henningsson, S., Yetton, P.: Post-acquisition IT integration: the sequential effects in growth-by-acquisition programs. In: 24th Australasian Conference on Information Systems (ACIS 2014) (2013)
Henningsson, S., Yetton, P.: Towards a Theory of Post-Acquisition IT Integration (Working Paper) (2016)
Tanriverdi, H., Uysal, V.B.: Cross-business information technology integration and acquirer value creation in corporate mergers and acquisitions. Inf. Syst. Res. 22, 703–720 (2011)
Benitez-Amado, J., Ray, G.: Introducing IT-enabled business flexibility and IT integration in the acquirer’s M&A performance equation. In: Proceedings of the 33rd International Conference on Information Systems (ICIS 2012) (2012)
Toppenberg, G., Henningsson, S., Shanks, G.: How Cisco Systems used enterprise architecture capability to sustain acquisition-based growth. MIS Q. Exec. 14(4), 151–168 (2015)
Ross, J.W., Weill, P., Robertson, D.: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution. Harvard Business Press, Brighton (2006)
Gregor, S.: The nature of theory in information systems. MIS Q. 30, 611–642 (2006)
Henningsson, S., Carlsson, S.: The DySIIM model for managing IS integration in mergers and acquisitions. Inf. Syst. J. 21, 441–476 (2011)
Haspeslagh, P.C., Jemison, D.B.: Managing Acquisitions: CREATING Value Through Corporate Renewal. Free Press, New York (1991)
Robbins, S.S., Stylianou, A.C.: Post-merger systems integration: the impact on IS capabilities. Inf. Manag. 36, 205–212 (1999)
Henningsson, S., Yetton, P.: Managing the IT integration of acquisitions by multi-business organizations. In: Proceedings of the 32nd International Conference on Information Systems (ICIS 2011) (2011)
Yin, R.K.: Case Study Research Design and Methods. Sage, Thousand Oaks (2009)
Dubé, L., Paré, G.: Rigor in information systems positivist case research: current practices, trends, and recommendations. MIS Q. 27(4), 597–636 (2003)
Ritchie, J., Lewis, J., Nicholls, C.M., Ormston, R.: Qualitative Research Practice: A Guide for Social Science Students and Researchers. Sage, Thousand Oaks (2013)
Martin, R.C.: Agile Software Development: Principles, Patterns, and Practices. Prentice Hall PTR, Upper Saddle River (2003)
Yin, R.K.: Case Study Research: Design and Methods. Sage publications, Thousand Oaks (2013)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2017 Springer International Publishing AG
About this paper
Cite this paper
Törmer, R.L., Henningsson, S. (2017). How Enterprise Architecture Maturity Enables Post-Merger IT Integration. In: Johansson, B., Møller, C., Chaudhuri, A., Sudzina, F. (eds) Perspectives in Business Informatics Research. BIR 2017. Lecture Notes in Business Information Processing, vol 295. Springer, Cham. https://doi.org/10.1007/978-3-319-64930-6_2
Download citation
DOI: https://doi.org/10.1007/978-3-319-64930-6_2
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-64929-0
Online ISBN: 978-3-319-64930-6
eBook Packages: Business and ManagementBusiness and Management (R0)