Post-Acquisition Management in China

331 Pages·2009·6.852 MB·English

by  Yi He (Auth.)

Post-acquisition Management in China
CHANDOS
ASIAN STUDIES SERIES:
CONTEMPORARY ISSUES AND TRENDS
Series Editor: Professor Chris Rowley,
Cass Business School,City University,UK
(email: [email protected])
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Post-acquisition
Management in China
Y H
I E
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First published in 2009
ISBN:
978 1 84334 575 6
© Yi He,2009
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To
My Family
List of figures
1.1 Worldwide M&A transaction values 2
1.2 M&A transaction values in China 2
3.1 Elements in the atmosphere for capability transfer 38
3.2 The process of change in acquisitions 49
3.3 The post-acquisition management process 50
3.4 Post-acquisition change processes 52
3.5 Types of acquisition integration approaches 53
3.6 Degree of integration 54
4.1 Methodology flowcharts 61
4.2 Indicators of post-acquisition performance 63
5.1 Timing of the acquisition in the sample 72
5.2 Ownership of acquiring and acquired firms 74
5.3 Geographic distribution of acquiring and acquired firms 75
6.1 Post-acquisition changes in the acquired firms 86
6.2 Changes in the financial control of the acquired companies 87
6.3 Changes in the top management of the acquired companies 89
6.4 Changes in the organizational structure of the acquired
companies 91
6.5 Changes in the integration and control of the acquired
companies 95
6.6 Changes in the HRM of the acquired companies 97
6.7 Changes in the sales and marketing of the acquired
companies 101
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Post-acquisition Management in China
6.8 Changes in the production and R&D of the acquired
companies 104
6.9 Changes in communication and philosophy of the
acquired companies 108
6.10 Changes in the strategy of the acquired companies 112
7.1 Change process 116
7.2 Degree of integration 118
7.3 Formal reporting relationship 120
7.4 Personal links 121
7.5 Resource from the acquiring company 124
7.6 Major problems facing the integration 127
7.7 Performance after the acquisition 131
7.8 The potential association between the performance
and post-acquisition changes 132
8.1 National differences in timing of the acquisition 137
8.2 National differences in the ownership of the target
companies 138
8.3 National differences in geographic distribution of
target companies 140
8.4 National differences in the process of the acquisition 141
8.5 National difference in the post-acquisition changes
(overview) 144
8.6 National differences in change processes 153
8.7 National differences in personal links 155
8.8 National differences in the resource provision from
parent companies 156
8.9 National differences in major problems in the change
process 157
8.10 National differences in post-acquisition performance 159
8.11 Predictors of post-acquisition changes 161
8.12 Predictors of post-acquisition performance 167
9.1 Different stages of quantitative analysis 175
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List of tables
1.1 Types of M&A activities in China at different times 3
2.1 Theories of rationales for acquisitions 14
2.2 Qualitative comparison of four measures of acquisition
performance 22–4
3.1 Linking strategic rationale and synergies 39
3.2 Summary of previous studies on post-acquisition changes 42–3
3.3 Types of Human Resources change by acquisition type 45
3.4 The key areas of post-acquisition changes 47–8
4.1 Nationality of the acquirer 64
4.2 Year of acquisition 64
4.3 Categories of acquiring companies 65
4.4 Ownership of acquiring firms 65
5.1 Transaction value of the acquisition 73
5.2 Size of acquiring and acquired firms 73
5.3 Industry of acquiring and acquired firms 75
5.4 Process of acquisition 76
5.5 Position of interviewees in the company 77
5.6 Rationale of acquisitions – acquirer’s perspective 78
5.7 Rationale of acquisitions – acquiree’s perspective 82
8.1 Nationality of the acquiring companies 136
8.2 National difference in the size of the target companies 138
8.3 National difference in the industry of the target companies 139
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Post-acquisition Management in China
8.4 National difference in the rationale of the acquiring
companies 142
8.5 National difference in the degree of post-acquisition
changes 145–6
8.6 National difference in the degree of integration 154
8.7 The influence of different factors on areas of
post-acquisition change 162–3
9.1 Measurement of key changes constructs 177–8
9.2 Correlation matrix of contextual variables 180
9.3 Measurement of key influence constructs 182–3
9.4 Summary statistics of post-acquisition changes and
influence of acquirer 185–9
9.5 Correlation matrix of indicators of post-acquisition
control and integration 192
9.6 Correlation matrix of indicators of post-acquisition
integration and strategic and operational control and
contextual factors 193
9.7 T-tests for possible predictors of post-acquisition
integration and strategic and operational control and
contextual factors 193
9.8 Comparison of impacts of contextual factors on
integration and control of our finding with Child
et al’s (2001) study 194
9.9 Changes in management practice correlating with
post-acquisition strategic control, categorized by
nationality of acquiring company 195–6
9.10 Changes in management practice correlating with
post-acquisition operational control, categorized by
nationality of acquiring company 197
9.11 Changes in management practice correlating with
post-acquisition integration, categorized by
nationality of acquiring company 198–9
9.12 National profiles: integration, strategic and operational
control, and performance 201
xiv
Contents
9.13 Correlation matrix of the indicators of post-acquisition
performance 204
9.14 Correlation matrix of key post-acquisition changes 207
9.15 Correlation matrix of key post-acquisition changes and
key influence of acquirer 208
9.16 Correlation matrix of key changes and contextual
factors 210
9.17 T-tests for key changes and contextual factors 211
9.18 Results of regression analysis of key post-acquisition
changes 213–17
9.19 Correlation matrix of key post-acquisition changes
and performance 219
9.20 Changes in management practice correlating with
post-acquisition sales and profitability performance 220–1
9.21 National profiles: changes in management practice
correlating with post-acquisition sales performance,
categorized by nationality of acquirer 222–3
9.22 National profiles: changes in management practice
correlating with post-acquisition profitability,
categorized by nationality of acquiring company 224
9.23 Correlation matrix of post-acquisition performance
and contextual factors 225
9.24 T-tests for performance changes and contextual factors 226
9.25 Comparisons of the profile of post-acquisition
changes between the case study and survey 229–31
xv