A1 Refereed original research article in a scientific journal

Industry consolidation as a strategy: an acquisition program perspective




AuthorsLähteenmäki Jarno, Töyli Juuso

PublisherEmerald

Publication year2023

JournalJournal of strategy and management

Journal name in sourceJOURNAL OF STRATEGY AND MANAGEMENT

Journal acronymJ STRATEGY MANAG

Volume16

Issue3

First page 492

Last page515

Number of pages24

ISSN1755-425X

eISSN1755-4268

DOIhttps://doi.org/10.1108/JSMA-10-2022-0178

Web address https://doi.org/10.1108/JSMA-10-2022-0178

Self-archived copy’s web addresshttps://research.utu.fi/converis/portal/detail/Publication/179438592


Abstract

Purpose

The purpose of this paper is to enlighten the intriguing process of industry asset consolidation. It is critical for firms to manage their business acquisitions strategically for survival in this industry life cycle process, which develops through multiple company mergers. The companies extensively acquiring industry assets have utilized acquisition programs consisting of both pre-acquisition strategizing and post-acquisition integration; however, the existing literature on acquisition programs focuses on post-acquisition integration activities. This study aims to bridge this gap.

Design/methodology/approach

This study focuses on pre-acquisition strategizing of acquisition programs and proposes a model in which an acquiring company could manage its acquisitions for industry asset consolidation over the industry evolution.

Findings

Empirically, in the multi-case study of telecommunications infrastructure companies, the authors collect an extensive set of archival records accumulated over the whole industry life-cycle, spanning more than 30 years, and they apply a qualitative data analysis to reveal strategic actions within the companies.

Research limitations/implications

The discoveries elaborate on activities comprising the acquisition process model: social legitimacy, strategic alignment, resource fulfillment, consolidation pursuit and merging.

Practical implications

The counterintuitive findings are that the companies strived to ensure legitimacy early in the telecommunication infrastructure markets before they reached strategic alignment with their owners.

Originality/value

The results extend the understanding of industry asset consolidation as an organization-level phenomenon and show how contextual factors connected to industry life-cycle phases, such as regulatory regimes and financial cycles and industry evolution, influence the attributions of an acquisition program.


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Last updated on 2024-26-11 at 11:59