The strategic positioning of information systems in post-acquisition management

Merali, Yasmin; McKiernan, Peter

Abstract

Although corporate growth through acquisition continues to be a popular strategy for the 1990s, the failure rate of acquired companies remains high at 50 per cent. This paper focuses on post-acquisition integration of information systems (IS) and information technology (IT) and its impact on post-acquisitive performance. Based on the results of detailed case studies and a preliminary survey, it is found that managers involved in pre-and post-acquisition decision-making often fail to adequately consider the strategic importance of IS/IT in contributing to the acquisition outcome. IS integration is often driven by the immediate requirements of operational consolidation, and organizations fail to invest in the establishment of IS infrastructures to support longer-term corporate requirements. It is suggested that the reactive status accorded to IS coupled with an observed lack of organizational learning prevents organizations from exploiting IS effectively for the achievement of acquisition success.

Citation

Merali, Y., & McKiernan, P. (1993). The strategic positioning of information systems in post-acquisition management. Journal of Strategic Information Systems, 2(2), 105-124. https://doi.org/10.1016/0963-8687%2893%2990003-S

• Journal Article Type: Article
• Online Publication Date: Apr 23, 2002
• Publication Date: 1993-06
• Deposit Date: Oct 18, 2019
• Journal: Journal of Strategic Information Systems
• Print ISSN: 0963-8687
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 2
• Issue: 2
• Pages: 105-124
• DOI: https://doi.org/10.1016/0963-8687%2893%2990003-S
• Keywords: Post-acquisition management; Information systems integration; Information technology integration
• Public URL: https://hull-repository.worktribe.com/output/2957079
• Publisher URL: https://www.sciencedirect.com/science/article/pii/096386879390003S