Integration management of cross-border M&A and cross-border alliance

Abstract

While the strategic importance of cross-border M & A and cross-border alliances is increasing for Japanese companies, the research on integration management is limited. This article is based on the keynote address of the national conference of the Japan Academy of International Business Studies in 2018, “Post Merger Integration (PMI) in cross-border M & A and alliance governance in crossborder alliance”. We will ask about the possibility that “integration management” can be a frontier of international business research, and the possibility that these M&A studies and alliance studies can be complementary in integration management.

There has been considerable research accumulated on alliance management capabilities, which refers to the ability of companies to collect, share and store alliance management knowledge and apply this knowledge to current and future alliances. Research on alliance governance (how to manage opportunistic behavior of alliance members) will be important. In M & A research, the emphasis has shifted from “What are the desirable conditions for M&A?” To “How to integrate merged/acquired companies?”. PMI methods can be categorized by two axes: strategic interdependence and organizational autonomy. If synergies can be expected due to high interdependence and organizational autonomy, a “symbiotic” PMI is appropriate. In the future, it will be necessary to study how to manage symbiotic type PMI.

The case of Nissan (and Renault) may provide various suggestions by having two points of view in analyzing this case, one is the strategic alliance of these two companies and the other is PMI by Renault. We also could lean the pros and cons of synergy realization over a long period of time. The case of Recruit corporation is a symbiotic advanced case of Symbiotic PMI in cross-border M & A, and shows the importance of having a clear management strategy as the background of M & A.