Managing Information Systems Integration in Corporate Mergers and Acquisitions Henningsson ...

398 Pages·2017·2.99 MB·English

Managing Information Systems Integration in Corporate Mergers and Acquisitions
Henningsson, Stefan
2008
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Citation for published version (APA):
Henningsson, S. (2008). Managing Information Systems Integration in Corporate Mergers and Acquisitions.
[Doctoral Thesis (monograph)]. Lund Business Press.
Total number of authors:
1
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LUND UNIVERSITY
PO Box 117
221 00 Lund
[phone]
Download date: 07. Feb. 2023
Managing Information Systems
Integration in Corporate Mergers
and Acquisitions

Stefan Henningsson

Lund Institute of Economic Research
School of Economics and Management

Lund Business Press
Lund Studies in Economics and Management 101
Lund Business Press
Lund Institute of Economic Research
P.O. Box 7080, SE-220 07 Lund, Sweden

ISBN-10 91-85113-24-7
ISBN-13 978-91-85113-24-8
© Stefan Henningsson

Printed in Sweden
KFS i Lund AB 2008
Acknowledgements

Until now, the plan has been to have an acknowledgement-section
consisting of the words “Thank you mom, dad and Thomas!” In that
case, one of my supervisors, Thomas Kalling, has promised to perform
Abbas hit “Chiquitita” live at the reception dinner following my
dissertation defense. However, I realize that leaving out all other
persons to whom I owe immense gratitude for being able to finish this
dissertation project would simply be too unfair.
First of all, I would like to express my gratitude towards Trelleborg
AB for giving me the opportunity to pursue this project. Not only have
Trelleborg provided the financial means in collaboration with Lund
Institute of Economic Research, but also provided an interesting
empirical setting that consists the foundation for the research presented
here. I would like to thank all Trelleborg employees that have made this
research possible and especially direct my gratitude to Jan T. Pettersson,
Alain Guillon, Anders Grahn, David Brown, and Dan Eisengarthen for
their support and contribution to the project. I would also direct my
gratitude to my colleagues from Lund Institute of Economic Research
who has participated in the Trelleborg-project. Lars Bengtsson, for your
guidance and ability to find ways forward and Magnus Johansson for
your generous and interesting collaboration.
Further, I would like to thank my supervisors Sven Carlsson, Jonas
Hedman, and Thomas Kalling. Together you have complemented each
other perfectly, providing support in every aspect of the research
process. From understanding stodgy theories to making sure that the
internet connection works. I regard you all as (more) knowledgeable
friends that encourage me and enable me to use my full potential as
researcher. As long as I do research, it will always carry traces of what
you have taught me.
Continuing with knowledgeable friends, I’m also grateful to my
soon to be former fellow Ph.D. students in Lund. Not one time during
these four years that it has taken to complement this study have I
thought that going to the office was a hard thing to do. It could, of
course, be that I nurture an unhealthy curiosity for IS integration and
M&As, but it has most probably been because of you Lisen, PO,
Mange, Petter, Carl, and the rest of you.
Friends and colleagues is also the correct epithet for those master
students that I have collaborated with during this study. All of you have
left traces in this dissertation that you can be proud of. Thank you
Mikael Dudas, André Mazouch, Santhosh Nair, Claes Svensson, Peter
Tobisson, and Linus Vallén for your contributions.
The Swedish Research School of Management and IT has
provided me with a research community and an arena to present and
discuss my research with fellow researchers in an open and friendly
atmosphere. I’m grateful to the input I have received during numerous
seminars and presentations. I send my gratitude to Stefan Hrastinski,
Niklas Johansson, David Sörhammar, and Linda Bergkvist, among
others. Professor Anders G. Nilsson, Karlstad University, has provided
me with excellent feedback at numerous occasions. I hope I have been
able to give justice to your valuable suggestions.
I would also like to thank the always friendly and helpful Carl-
Johan Andersson who has provided a very useful link into the world of
IS integration practitioners.
Finally, I would also like to send my gratitude to my friends and
family that has been a constant support and solid foundation to lean on
when things have become a little rough at the research side. I know I
owe you a lot and my next major project should probably be to find a
way of paying you back.

Malmö, April 4, 2008

Stefan Henningsson

Ps. Thomas, I have not given up on “Chiquitita” yet… ds.
Contents

PART I: Outset and framing 1
1. Introduction 3
1.1 When integration becomes a part of everyday business life… 4
1.2 Definitions of key concepts 6
1.3 What is known and not known about IS integration in M&A 8
1.4 Purpose and knowledge contribution 15
1.5 Methodological considerations and study delimitations 18
1.6 The empirical cases 24
1.7 Disposition and use of publications 25
2. Management of information systems integration 29
2.1 The terminology of IS integration 29
2.2 Elements of IS integration management 37
2.3 IS integration objectives 43
2.4 IS integration options 55
2.5 Contribution of chapter 2 61
3. Research on Mergers and Acquisition 67
3.1 Defining Mergers and Acquisitions 67
3.2 M&A as a tool for corporate strategy 68
3.3 Organizational integration in M&A 78
3.4 The M&A process 80
3.5 Contribution of Chapter 3 88
Part II: Describing and explaining IS integration in M&A at
Trelleborg 93
4. IS Integration and M&A 95
4.1 Research on IS integration in M&A 95
4.2 Combining literature on M&A and IS integration 103
4.3 Contribution of Chapter 4 109
5. Methodological considerations for describing and explaining IS integration in
M&A 113
5.1 The choice of qualitative case studies 113
5.2 The research process 117
5.3 Case selection 120
5.4 Data gathering 125
5.5 Data analysis 129
5.6 Evaluating descriptive and explanatory contribution 129
5.7 Contribution of Chapter 5 132
6. A Preliminary Theoretical Framework for IS Integration in M&A 135
6.1 Use and structure of the framework 135
6.2 Elements of a theoretical framework of IS integration in M&A 136
6.3 The complete framework 147
6.4 Contribution of Chapter 6 152
7. Managing IS integration in four M&As at Trelleborg AB 153
7.1 Case context: Trelleborg AB 153
7.2 Case A: Kleber 161
7.3 Case B: Dynaflex 175
7.4 Case C: CRP Group 187
7.5 Case D: Chase-Walton 194
7.6 Contribution of Chapter 7 206
8. The relationship between IS integration and M&A 207
8.1 Case coverage 207
8.2 Theoretically identified relations 209
8.3 Empirically identified relations 213
8.4 Contribution of Chapter 8 220
9. Reconsidering the framework: towards an IS integration model 225
9.1 Revising the six dimensions 225
9.2 Extending the frame with a meta level 234
9.3 Towards a model over the dynamic system of IS integration in M&A 242
9.4 In the light of recent contributions on IS integration in M&A 251
9.5 Contribution of Chapter 9 253
PART III Supporting management of IS integration in M&A 255
10. A design for this design science 257
10.1 Towards prescriptive theory 257
10.2 Design activities 265
10.3 Contribution of Chapter 10 272
11. Three managerial challenges and their support 275
11.1 Challenge I: Improving the IS integration capability 275
11.2 Challenge II: Leveraging synergies with IS integration 283
11.3 Challenge III: Choosing an integration architecture 293
11.4 Contribution of Chapter 11 303
Part IV: Epilogue 307
12. Research contributions and conclusions 307
12.1 Knowledge contribution 309
12.2 Major conclusions and impact of research findings 314
12.3 Quality attributes of this research 320
12.4 The future of IS integration in M&A 326
Appendix A – Publications on IS in M&A 330
Appendix B - Acquisitions and Divestments by Trelleborg AB 334
Appendix C – Interviews 337
Appendix D – General interview guide 338
Appendix E – Supporting management of IS integration in M&A 343
Appendix F – Guide for evaluation of management support 348
Appendix G – Evaluation form 350
Appendix H – List of Evaluators 356
References 359
Recurring abbreviations

CEO – Chief Executive Officer
CIO – Chief Information Officer
CIM – Computer Integrated Manufacturing
CRM (system) – Customer Relationship Management (system)
EAI – Enterprise Application Integration
EI – Enterprise Integration
ERP (system) – Enterprise Resource Planning (system)
ES - Enterprise System
ESB – Electronic Service Bus
FTC (-framework) – Federal Trade Commission (-framework)
IS – Information System
IT – Information Technology
M&A – Merger & Acquisition
MIS – Management Information Systems
MRP (system) – Materials Resource Planning (system)
OI – Organizational Integration
OL – Organizational Learning
SCOR – Supply-Chain Operations Reference
SOA – Service Oriented Architecture
TA – Trelleborg Automotive
TBS – Trelleborg Building Systems
TES – Trelleborg Engineered Systems
TSS – Trelleborg Sealing Solutions
TWS – Trelleborg Wheel Systems
PART I:

Outset and framing
1