A1 Refereed original research article in a scientific journal
Industry consolidation as a strategy: an acquisition program perspective
Authors: Lähteenmäki Jarno, Töyli Juuso
Publisher: Emerald
Publication year: 2023
Journal: Journal of strategy and management
Journal name in source: JOURNAL OF STRATEGY AND MANAGEMENT
Journal acronym: J STRATEGY MANAG
Volume: 16
Issue: 3
First page : 492
Last page: 515
Number of pages: 24
ISSN: 1755-425X
eISSN: 1755-4268
DOI: https://doi.org/10.1108/JSMA-10-2022-0178
Web address : https://doi.org/10.1108/JSMA-10-2022-0178
Self-archived copy’s web address: https://research.utu.fi/converis/portal/detail/Publication/179438592
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.
Downloadable publication This is an electronic reprint of the original article. |