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Social Network Mixing Patterns In Mergers & Acquisitions - A Simulation Experiment

Author

Listed:
  • Fabac Robert

    (Faculty of Organization and Informatics, University Of Zagreb, Pavlinska 2, 42000 Varaždin, Croatia)

  • Schatten Markus

    (Faculty of Organization and Informatics, University Of Zagreb, Pavlinska 2, 42000 Varaždin, Croatia)

  • Đuričin Tomislav

    (Bio-Zrno d.o.o., Đure Sudete 42, 42000 Varaždin, Croatia)

Abstract

In the contemporary world of global business and continuously growing competition, organizations tend to use mergers and acquisitions to enforce their position on the market. The future organization's design is a critical success factor in such undertakings. The field of social network analysis can enhance our uderstanding of these processes as it lets us reason about the development of networks, regardless of their origin. The analysis of mixing patterns is particularly useful as it provides an insight into how nodes in a network connect with each other. We hypothesize that organizational networks with compatible mixing patterns will be integrated more successfully. After conducting a simulation experiment, we suggest an integration model based on the analysis of network assortativity. The model can be a guideline for organizational integration, such as occurs in mergers and acquisitions.

Suggested Citation

  • Fabac Robert & Schatten Markus & Đuričin Tomislav, 2011. "Social Network Mixing Patterns In Mergers & Acquisitions - A Simulation Experiment," Business Systems Research, Sciendo, vol. 2(1), pages 36-44, January.
  • Handle: RePEc:bit:bsrysr:v:2:y:2011:i:1:p:36-44
    DOI: 10.2478/v10305-012-0018-9
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    References listed on IDEAS

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    1. John Hagedoorn & Geert Duysters, 2002. "External Sources of Innovative Capabilities: The Preferences for Strategic Alliances or Mergers and Acquisitions," Journal of Management Studies, Wiley Blackwell, vol. 39(2), pages 167-188, March.
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    3. Schuler, Randall & Jackson, Susan, 2001. "HR issues and activities in mergers and acquisitions," European Management Journal, Elsevier, vol. 19(3), pages 239-253, June.
    4. Harford, Jarrad, 2005. "What drives merger waves?," Journal of Financial Economics, Elsevier, vol. 77(3), pages 529-560, September.
    5. Hogarty, Thomas F, 1970. "The Profitability of Corporate Mergers," The Journal of Business, University of Chicago Press, vol. 43(3), pages 317-327, July.
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    Cited by:

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    2. Crnkovic Jakov (Yasha), 2013. "Invited Article: The Future of CRM is UX," Business Systems Research, Sciendo, vol. 4(1), pages 4-13, March.

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