Browsing by Author "Schoenberg, Richard"
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Item Open Access Customer reactions and competitive responses to mergers in a B2B service industry(Cranfield University, 2012-12-14) Kato, Junichi; Schoenberg, RichardThe primary aim of this doctoral research was to empirically investigate customer and competitive reactions to post-M&A integration through both quantitative and qualitative customer perspectives, and to identify the business impact of these reactions and its potential causal mechanisms. The topic is widely recognised among practitioners but has received relatively little attention in the academic literature (Anderson et al., 2001; Schweiger and Very, 2003), which might explain the reason why decisive factors for M&A success are still elusive (Homburg and Bucerius, 2005). The research was carried out in three stages. Project-1 engaged in a systematic review of the marketing literature in order to build a foundation of knowledge on customer-supplier relationships. The review results were integrated into a literaturebased conceptual model, indicating the link between customer relationship management activities, customer loyalty and company performance, under ‘business as usual’ conditions. Based on this conceptual model, Project-2 empirically investigated post-M&A business issues through a single case study of multi-business mergers. Interviews with key account managers and their customers suggested a potential underlying causal mechanism of integration effects on customer-supplier relationships. Finally, Project-3 tested the key variables and interrelationships identified in Project-2 through a survey method in order to begin the process of generalization. Survey responses from business-to-business (B2B) customers were analysed by applying Structural Equation Modelling, which indicated potential causal correlations between integration activities, perceived changes in customer relationship variables and changes in the level of behavioural customer loyalty during the post-M&A period. The findings suggest a possible answer to the overall research question — what are the key factors that affect post-M&A business performance, or more specifically, what are the key variables that influence customer reactions and why/how? Post-M&A integration actions were found to trigger customer relationship issues. For instance, the integration of operations and IT systems leads to perceived deterioration in service performance, while salesforce integration creates organisational issues such as employees’ internally focused attitudes, which result in perceived declines in customer orientation and account management quality. Furthermore, integration actions as a whole generate an unstable business environment that promotes intensive competitive attacks. Some contextual factors which magnify these issues were also identified, specifically the complexity of the merger/integration and the depth of the pre-merger customer relationships. The issues above negatively influence customers’ purchase intentions and, in the worst cases, drove customers to terminate contracts, which would exert a negative impact on the merging parties’ business performance during the post- M&A integration period. The research has made a step towards a better understanding of how customers and competitors respond to post-M&A integration and the mechanisms by which those responses arise, particularly within the focal industry context of this study. It contributes to the M&A-integration and performance literature by illuminating the role and drivers of competitive attacks, and customer reactions in determining market-related M&A performance. It also contributes to the M&A-integration and business network literature by suggesting the mechanisms through which the customer-supplier relationship is impacted by post-M&A integration activities. Finally, contributions to practice and methodological development, as well as limitations and implications for future research, are also presented.Item Open Access Measuring the Performance of Corporate Acquisitions: An Empirical Comparison of Alternative Metrics(Blackwell Publishing Ltd, 2006-12-01T00:00:00Z) Schoenberg, RichardThe choice of performance measure has long been a difficult issue facing researchers. This article investigates the comparability of four common measures of acquisition performance: cumulative abnormal returns, managers' assessments, divestment data and expert informants' assessments. Independently each of these measures indicated a mean acquisition success rate of between 44–56%, within a sample of British cross-border acquisitions. However, with the exception of a positive relationship between managers' and expert informants' subjective assessments, no significant correlation was found between the performance data generated by the alternative metrics. In particular, ex-ante capital market reactions to an acquisition announcement exhibited little relation to corporate managers' ex-post assessment. This is seen to reflect the information asymmetry that can exist between investors and company management, particularly regarding implementation aspects. Overall, the results suggest that future acquisitions studies should consider employing multiple performance measures in order to gain a holistic view of outcome, while in the longer term, opportunities remain to identify and refine improved metricItem Open Access Strategies for Business Turnaround and Recovery: A Review and Synthesis(Emerald Group Publishing Limited, 2013-06-01T00:00:00Z) Schoenberg, Richard; Collier, Nardine; Bowman, CliffPurpose - Against a backdrop of continued weak economic conditions and with many firms experiencing declining financial performance, this paper presents a synthesis of the business turnaround literature. It aims to identify which turnaround and recovery strategies have been effective historically, based on the evidence provided by previous empirical research. Design/methodology/approach - The authors review literature that includes 22 empirical studies, which investigated business turnarounds in previous recessionary environments. This literature was reviewed in its entirety, rather than as individual contributions, to synthesise the lessons available for businesses operating in today's challenging economic environment. Findings - The literature review revealed convergence in the findings of the prior studies. In total, six effective turnaround strategies were consistently identified and four of these relate to the content of the turnaround, namely: cost efficiencies, asset retrenchment, a focus on the firm's core activities and building for the future and two relate to accompanying change processes required for implementation: reinvigoration of firm leadership and culture change. Research limitations/implications - The authors highlight areas where knowledge on business turnarounds remains limited and suggest potentially fruitful directions for future research. Practical implications - The authors discuss the elements involved in each of the six effective turnaround strategies identified. The authors also provide a contemporary example to illustrate the application of these strategies in the current economic environment. Originality/value - The paper offers practitioners an evidence-based view on effective business turnaround and recovery strategies, in addition to providing researchers with an accessible review of the existing literature.Item Open Access Thirty Years of Mergers and Acquisitions Research: Recent Advances and Future Opportunities(Blackwell Publishing Ltd, 2006-01-01T00:00:00Z) Cartwright, Susan; Schoenberg, RichardThe complex phenomenon that mergers and acquisitions (M&As) represent has attracted substantial interest from a variety of management disciplines over the past 30 years. Three primary streams of enquiry can be identified within the strategic and behavioural literature, which focus on the issues of strategic fit, organizational fit and the acquisition process itself. The recent achievements within each of these research streams are briefly reviewed. However, in parallel to these research advances, the failure rates of mergers and acquisitions have remained consistently high. Possible reasons for this dichotomy are discussed, which in turn highlight the significant opportunities that remain for future M&A research.Item Open Access Travel abroad or stay at home?: Investigating the patterns of bank industry M&As in the EU.(Emerald Group Publishing Limited, 2007) Figueira, Catarina; Nellis, Joseph G.; Schoenberg, RichardThe purpose of this study is to investigate the extent of bank industry consolidation across the European Union, the patterns that have emerged from the mergers and acquisitions (M&As) and the regulatory framework that underpins these processes. It aims to identify the key challenges that have to be addressed if M&As are to expand.