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Successful integration of target firms in international acquisitions: A comparative study in the Medical Technology industry

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  • Wei, Tian
  • Clegg, Jeremy

Abstract

This paper explores approaches for integration of target firms in international acquisitions in the context of the Medical Technology (MT) industry. Recent research suggests that resource interactions present the primary activities in integration. With six in-depth case studies, this paper firstly reexamines the strategic resources in smaller units to build the foundation for later analysis. It then clarifies the concept of similarity and complementarity with two working definitions. After that, four integration approaches have been identified: capability maintenance, capacity building, product focus, and R&D focus. Finally, a two by two matrix is synthesized to reveal the nature of developing integration approaches from a resource-based view (RBV). Besides the theoretical contributions to acquisition literature, this study also has its compound managerial implications.

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  • Wei, Tian & Clegg, Jeremy, 2014. "Successful integration of target firms in international acquisitions: A comparative study in the Medical Technology industry," Journal of International Management, Elsevier, vol. 20(2), pages 237-255.
    • Handle: RePEc:eee:intman:v:20:y:2014:i:2:p:237-255
    DOI: 10.1016/j.intman.2013.05.003
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    Cited by:

    1. Ashish Malik & Ralf Bebenroth, 2017. "Mind Your Language! : Role of Target Firm Language in Post-Merger Integration," Discussion Paper Series DP2017-15, Research Institute for Economics & Business Administration, Kobe University.
    2. Wei, Tian & Clegg, Jeremy, 2017. "Exploring sources of value destruction in international acquisitions: A synthesized theoretical lens," International Business Review, Elsevier, vol. 26(5), pages 927-941.
    3. Gada, Viswa Prasad & Goyal, Lakshmi & Popli, Manish, 2021. "Earnouts in M&A deal structuring: The impact of CEO prevention focus," Journal of International Management, Elsevier, vol. 27(1).
    4. Campagnolo, Diego & Vincenti, Giampiero, 2022. "Cross-border M&As: The impact of cultural friction and CEO change on the performance of acquired companies," Journal of International Management, Elsevier, vol. 28(4).
    5. Reddy, Kotapati Srinivasa, 2015. "The State of Case Study Research in Mergers & Acquisitions: A Review of the Literature in Different Management Streams," MPRA Paper 63939, University Library of Munich, Germany, revised 2015.
    6. Murray, Janet Y. & Fu, Frank Q., 2016. "Strategic guanxi orientation: How to manage distribution channels in China?," Journal of International Management, Elsevier, vol. 22(1), pages 1-16.
    7. Yanan Yang & Christoph Lütge, 2023. "Chinese Multinationals’ Dynamic Integrations in the Developed Market: From a Resource Dependence Perspective," SAGE Open, , vol. 13(4), pages 21582440231, December.

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