Mergers and acquisitions are important tools used globally by firms to maintain a competitive advantage over their counterparts. Yet, a recent Harvard Business Review study reveals that between 80%-90% of mergers and acquisitions fail. This case study discusses an acquisition in the luxury car market to highlight the factors that can lead to a successful takeover. The study uses the acquisition of the premium British car brands of Jaguar and Land Rover by Tata Motors, an Indian automaker to answer a few related questions and provide future research avenues.
Academic performance indicator is a topic of great discussion among the academicians of Indian educational institutes. UGC implemented the API score to upgrade the quality of education and research in India. However, teachers have different opinions about API. Therefore, this paper aims to study the opinion of academicians working in different private and public institutes and to explore the factors that are contributing towards its acceptance and rejection, particularly by a third category, i.e., research category. The study was mainly qualitative, but the percentage method was also used as a quantitative tool to analyse the data. Results claimed that the maximum percentages of teachers despite working on different hierarchical levels were in favour of implementation of API as it motivates to acquire more knowledge. However, there were also teachers who felt that it should not be there as it is purely a mechanical experience which reduces innovation and creativity in research.
With the global expansion of start-ups, seed accelerator programs have been gaining focus, and acting as a resource for the development and internationalisation of these companies. Concurrently, networks have been used as a tool, due to the benefits they bring along with the connections developed. This qualitative research seeks to understand the functionality of business networking for the internationalisation of start-ups, analysing how accelerators influence and manage this asset. For that, we have done a comparative analysis based on the perceptions of six business accelerators located in six different countries: Brazil, Canada, Czech Republic, Italy, Israel and Malaysia. The findings suggest that networks play an ultimate role in terms of acceleration of start-ups' internationalisation. It reduces uncertainties, fosters innovation, and eases access to partners and investors. Accelerators use institutional and business partnerships, as well as seminars and workshops to foster networks; they also reduce risks when entering new markets.
This research aims to test the mediating role of the perceived brand credibility on consumer attitudes towards brand alliances. The results of a quantitative study among 248 consumers show that the effect of perceived congruence and the effect of attribution of altruistic motives depend on the perceived brand credibility. Moreover, the result highlights the effect of perceived brand credibility in the success of brand cause alliances. The results of the research suggest also that to improve the consumer attitude consumers towards causes brand alliances, companies must show their selflessness to social causes and their commitment to social welfare regardless of the level of credibility.
With the spending and failure rates of mergers and acquisitions (M&As) showing no signs of abating, strategy researchers must gain a better understanding of which factors enhance the likelihood of M&A success. We build on the M&A literature emphasising the critical role of top managers of both firms in influencing the combined firm's ability to realise a myriad of deal benefits. Drawing upon the resource based view and resource dependency theory, we offer a conceptual model which shows the effects of resource characteristics possessed by the top management team (TMT) of the acquiring and target firms on both the composition of the combined firm's TMT and its post-deal performance. Two resource characteristics emphasised are reputation-based resources as reflected in the prestige power of the respective TMTs and knowledge-based resources as denoted by the expert power of the respective TMTs. Our conceptual model offers avenues for empirical research to examine the effect of power on target executive retention and post-acquisition performance. Implications for strategic management are discussed.
Business groups (BGs), a prevalent organizational form in many economies are exhibiting evolutionary fitness and are no longer considered an organizational anomaly. We extend the traditional debate around strategic choice and performance paradigm by assessing differential performance effects of BG affiliation in international strategic alliance (ISA) formation choices(alliance scope, alliance governance structure, and alliance orientation). This study integrates the resource-based view and institutional perspective to explore the initial divergence in performance of a BG affiliated firm (BGAF) and non-BG affiliated firm (NBGAF) leading towards convergence later when partner complementarity and institutional evolution shifts from lower to the higher end of the spectrum. Contrasting the effect of different ISA choices on firm’s performance the hypotheses were developed and tested on a panel dataset of 1816 ISAs formed by 224 BGAFs and 242 NBGAFs over a span of 19 years. Findings suggest that the influence of BG affiliation on firm’s performance is more pronounced when alliance scope is broader, alliance governance structure is contractual and alliance orientation is exploratory and that this divergence in performance between BGAFs and NBGAFs weakens as the alliance partner’s complementarity increases and institutions evolve in the economy.
Although the cluster concepts are well-stressed in literature, and in several industries intensities, there are still some contributions that can be addressed to emerging countries. This article has as main objective to discuss the regional space for the development focusing the productive agglomerations and proposes a model of multilevel governance to assist the process of regional development which is important to generate income and increase the quality of life of the inhabitants of a given region. The space for regional development stems from the confrontation of two vectors: the first is the scale for development projects and the second is that of cooperation. A framework is built based on literature and a possible implementation in a Brazilian cluster is analysed.
Restaurant Brands International Inc. is a Canadian quick service restaurant company. It was created by the merger of Canadian coffee shop restaurant chain Tim Hortons and the US fast food restaurant chain Burger King in 2014 and expanded by the purchase of Popeyes in 2017. The company is the fifth-largest operator of fast food restaurants in the world with more than 25,000 restaurants operating in over 100 countries under its distinct brands. The merger's primary focus is to expand the international reach of the 'iconic' Tim Hortons brand, and provide financial efficiencies for both companies. In this case analysis, we looked at the past and present situation and addressed business issues facing both Burger King and Tim Hortons. We conducted a systematic case analysis, and used Michael's Five Forces to assess industry attractiveness. We identified problems and issues facing both companies, and we developed a set of strategic alternatives for the new company. We also evaluated and recommended sustainable alternatives marketing strategies to achieve superior results.
This research aims to understand the inter-organisational relations (RIOs) in the local productive arrangement (LPA) of gems and jewels of the South of Brazil, analysing to what extent the prevalence of characteristics of collaborative interdependence occurs. The paper addresses questions about developing LPAs, followed by the centralised discussion on the importance of the presence of collaborative interdependence between the different actors in RIOs. This exploratory research is characterised as a qualitative case study. The data collection was done through interviews, non-participant observation, and documentary analysis. Content analysis was adopted as a data analysis technique. The results indicate the occurrence of collaborative interdependence between the different actors that maintain RIOs. Collaboration on actions related to shared goals, use of common resources and complementarity of tasks is confirmed. However, it is also evidenced that the collaborative interdependence can be more effective, covering the LPA.
The purpose of this study is to provide an overview of the literature available on knowledge transfer highlighting the factors affecting knowledge transfer mechanism and provides a theoretical framework to study its impact on strategic alliance's innovation performance. The paper studied a vast literature for providing a comprehensive framework to study the knowledge transfer mechanism among the alliance partners and its impact on performance. It also proposes a methodology for future empirical testing. The paper provides factors affecting knowledge transfer among international strategic alliance partners. A theoretical framework is prepared from the literature for further research integrating factors effecting knowledge transfer, linking them with innovation performance. This paper provides avenues for further research in the field of strategic management and international business for improving knowledge exchange for alliance's success. The paper could not review all the possible variables affecting knowledge transfer and is conceptual in nature. The paper provides a useful insight for managers involved in the international strategic alliances as well as for business executives for improving knowledge transfer mechanism among alliance partners. Although various researchers have studied knowledge transfer among international strategic alliances, not too many have linked factors affecting knowledge transfer with performance, which this study does.
This research investigates the nature of strategic partnering activities of software SMEs (small-to-medium-sized enterprises), their motivations to engage in strategic partnerships as part of the internationalisation process, the key benefits achieved and the main challenges encountered. It explores managers’ perceptions of partnership activities through a qualitative research methodology focussing on Irish indigenous firms. Findings suggest that strategic partnerships were initiated to take advantage of firm synergy, reputation and credibility advantages. Partnerships also served as an important foreign market entry mechanism allowing firms to accelerate sales cycles and reduce risk in overseas markets. Challenges facing firms included partner selection and issues of control. Directions for further research are highlighted.
This research aims to analyse the historic merger between Robi and Airtel, two major telecom operators in a developing country, Bangladesh. There were six operators in the telecoms industry with Grameenphone as the dominant leader. Amid the fierce competition and price war, the merger has taken place and formed consolidated Robi Axiata, with the goal of developing the number one cellular network with widest coverage and the second largest operator of the country. The estimated outcomes of the successful merger are higher profitability and market share, increased subscriber base, higher economies of scale, financial stability, improved spectrum, extensive sale and distribution channels, etc. which will ultimately lead to a sustainable competitive advantage. However, while Robi Axiata has become the second largest telecoms operator, it has a lot to accomplish in order to improve financial performance and develop a competitive edge in the long-term. In addition, the gains from the merger are expected to be realised by the stakeholders, companies, industry, and customers. Currently, the consolidation has started a new era in Bangladesh economy and its actual benefits can only be verified in the future. With profound qualitative analysis, the study offers valuable managerial and policy implications.
The purpose of this study is to scrutinise the links between Chinese cross-border mergers and acquisitions (M&As) and of the export competitiveness of Chinese and of targeted countries' industries in which investors are competing. We base our study on the revealed comparative advantages (RCA) of both Chinese exports and recipient countries' exports. We develop hypotheses about the level of RCA of China in industries in which the corresponding M&As occur and the level of RCA of the recipient countries. We test our hypotheses on a sample composed of Chinese M&As realised in the eight main recipient countries registered from 2006-2016 in Europe. With respect to low-cost products, Chinese acquiring firms compete in industries with a high domestic RCA, whereas European target firms compete in industries with a high domestic RCA. With respect to more sophisticated products, Chinese acquiring firms compete in industries with a low domestic RCA and European target firms compete in industries with a high domestic RCA. Our study suggests the predominance of market-seeking investments in the first case and strategic asset-seeking investments in the second case.
With increasing competition and business uncertainties, firms have realised the importance of innovation to improve their competitive strength. Companies have also started realising that they need to make a shift from acquiring resources to enjoying the benefits of combining their own resources with the assets of others. While the importance of innovation to spur economic revival across the globe cannot be debated, how strategic alliances can aid the innovation journey of organisations is a question. The paper reviews and applies the proposed conceptual framework, highlighting the factors that influence innovation in strategic alliances, to cases of strategic alliances between companies.
The acquisition of inter-organisational network ties remains a functional pre-requisite in the survival of a business venture. We sought in this study, to explore the extent to which strategy-driven motivational factors and relational motivational factors significantly influence acquisition of inter-organisational network ties. Our data was procured from a sample of 150 managers and owners of small scale automobile firms recruited from an automobile cluster in Ghana. We adapted but modified a feed-forward neural network model where data propagate along the connections in the direction from the network inputs to the network outputs from the extant literature. Our results showed a complementary relationship between the effects of interactions that precede the development of cooperation among organisations and strategic forces which involve the deployment of a firm's core competencies. We proposed the need for automobile SMEs in Ghana to harness potential sources of competitive strength such as previous experience of working together with others.
Managers often use their alliance portfolios to learn. Learning generally involves balancing exploration and exploitation. However, within the alliance portfolio context, literature suggests that balancing exploration and exploitation alliances is problematic, and a focus in either exploration or exploitation alliances is more beneficial for learning. However, it is not clear which conditions favour one approach over the other, and how these conditions may change over time. Drawing from niche theory, I offer an evolutionary approach which suggests that, with respect to a focus on exploration or exploitation alliances, the correct choice depends on the environment. I propose two types of alliance portfolio orientations - generalist, where the firm develops general-alliance capabilities and engages in exploration and specialist, where the firm develops domain-specific capabilities and engages in exploitation. I compare the two orientations' strategic implications and theorise how and why an alliance portfolio orientation evolves over time.
This research examines individual entrepreneurial collaborations through a strategic group theoretical application in the fragmented labour brokerage industry. We describe the nature of collective strategy and strategic group activity to understand the behaviour of individuals' collaborations on service transactions. The interfirm and intrafirm collaborative behaviour of entrepreneurs are observed using a multi-level fixed effects linear regression model with 445 firms and over 30,000 transactions. We find internal collaborative activity will not necessarily increase performance but it may assist in higher quality deal flow. This study suggests the entrepreneurial behaviour of individuals operating in a fragmented industry will be to collaborate for more quality deals as opposed to more quantity deals. This behaviour is similarly to participation in strategic groups at the firm level of analysis.
The growth of alliances in developing countries has generated significant interest among scholars. Forming alliance is a reliable solution for companies based in developing countries to gain an advantage in international markets. Most of the previous studies present generic models or sets of characteristics for partner selection. In contrast, the current study suggests the partner characteristics which alliances' leaders should care about to be financially prosperous in international markets. Grounded in the resource-based view and review of recent studies, the theoretical framework of partner characteristics consisted of 13 variables. The data was gathered from Iranian alliances and analyses were done through the principal component and multiple regression analyses. The findings stress the importance of cognitive capability and knowledge stock as the most effective partner characteristics in export performance of alliances. Specifically, results introduce a framework that addresses why managers select partners with certain, specific characteristics to improve the export performance of alliances.
Traditional business process outsourcing (BPO) has been typically restricted to standardised process functions not perceived as core to the outsourcing organisations. However with knowledge process outsourcing (KPO), organisations are also exploring outsourcing of closer-to-core knowledge- intensive processes. Additionally, they are increasingly unwilling to the draw the line of separation between business process and relevant technology outsourcing and are expecting an integrated as-a-service approach. Thus KPO service providers are confronted with the dual challenge of building knowledge-intensive capabilities as well as integrating the relevant technologies hitherto not under their purview. This is leading many KPO organisations to look at building strategic partnerships with technology organisations. However, the success of the endeavour potentially rests on the organisation's alliance management capability as well as its ability of acquire, internalise and implement knowledge from partners (absorptive capacity). This paper attempts to develop a framework of possible alliance governance structures specifically aimed at KPO in an as‐a‐service scenario.
