A review of information system integration in mergers and acquisitions

2018 | Journal of Information Technology | Citations: 25

Authors: Henningsson, Stefan; Yetton, Philip W.; Wynne, Peter J.

Abstract: For three decades, research has investigated the role of information systems int ... Expand

Abstract: For three decades, research has investigated the role of information systems integration (ISI) in mergers and acquisitions (M&As). This research has improved our understanding of the M&A IS challenges and their solutions. However, consolidation and integration across the research is limited. To redress this omission, we review 70 articles published between 1989 and 2016. To do this, we adopt and extend the methodology developed by Lacity and her colleagues to review the empirical evidence in a fragmented IT literature. We code 53 dependent variables and 195 independent variables to identify the robust relationships among them and to model how ISI decisions, including the choice of IS integration methods, partially mediate the effects of the independent variables on ISI outcomes. Examining the relationships in this model, we identify five quasi-independent thematic domains on which we draw to develop an agenda for future research. Our contribution is the aggregation, organization and structuring of the empirical findings in the M&A ISI literature as a basis on which to develop a cumulative knowledge process. Collapse

Topics: database system information technology infrastructure user training IS agility decision making

Methods: literature sample case study constant comparative analysis qualitative coding theory development

Understanding Information Systems Integration Deficiencies in Mergers and Acquisitions: A Configurational Perspective

2016 | Journal of Management Information Systems | Citations: 36

Authors: Henningsson, Stefan; Kettinger, William J.

Abstract: Information systems (IS) integration is a critical challenge for value-creating ... Expand

Abstract: Information systems (IS) integration is a critical challenge for value-creating mergers and acquisitions. Appropriate design and implementation of IS integration is typically a precondition for enabling a majority of the anticipated business benefits of a combined organization. Often, IS integration projects are subject to deficiencies (e.g., loss of the target firm’s business capabilities with expedited integration) that limit value creation. Drawing on a configurational perspective, we reanalyze 37 published case studies of problematic IS integrations and identify the potential deficiencies and how they are produced. Our findings reveal nine causal configurations that together explain deficiency as a consequence of multiple paths of interconnected mechanisms and contextual conditions that drive their actualization. Finally, based on a post hoc analysis of 25 cases where no negative outcomes are reported, we discuss approaches for managing IS integration to avoid realizing the actualization of deficiencies. Collapse

Topics: system integration enterprise resource planning mergers and acquisition website

Methods: constant comparative analysis post analysis post-hoc analysis cluster analysis case study

Strategic Alignment In Mergers And Acquisitions: Theorizing IS Integration Decision making

2007 | Journal of the Association for Information Systems | Citations: 39

Authors: Mehta, Manjari; Hirschheim, Rudy

Abstract: This paper focuses on IS integration decisions made during mergers and acquisiti ... Expand

Abstract: This paper focuses on IS integration decisions made during mergers and acquisitions from a strategic-alignment lens. The objectives of this study are to: (1) examine business-IS alignment as reflected in IS integration decisions in a merger context and (2) identify factors that shape IS integration decisions in a merger context. We study these issues in three oil and gas mergers from pre-merger announcement to three to four years after merger announcement. Our contributions are threefold. We show that firms are somewhat misaligned in the early post-merger period, and come into alignment only two to three years after the merger. We find that business-IS alignment was a minor concern for the new organizations in premerger and early post-merger phases. Other factors such as acquirer-target power struggles, prior merger experience, and overarching synergy goals drove much of the initial integration decision making. Only late in the post-merger do the merged organizations revisit their systems to bring them into alignment with the business needs. Collapse

Topics: system integration IT alignment strategic management decision making outsourcing

Methods: qualitative interview case study theory development triangulation company material

Theories: institutional theory