Acquisitions and network identity change

Research output: Contribution to journalArticle

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Acquisitions and network identity change. / Öberg, Christina; Grundström, Christina; Jönsson, Petter.

In: European Journal of Marketing, Vol. 45, No. 9, 2011, p. 1470-1500.

Research output: Contribution to journalArticle

Harvard

Öberg, C, Grundström, C & Jönsson, P 2011, 'Acquisitions and network identity change', European Journal of Marketing, vol. 45, no. 9, pp. 1470-1500. https://doi.org/10.1108/03090561111151853

APA

Öberg, C., Grundström, C., & Jönsson, P. (2011). Acquisitions and network identity change. European Journal of Marketing, 45(9), 1470-1500. https://doi.org/10.1108/03090561111151853

CBE

MLA

Öberg, Christina, Christina Grundström and Petter Jönsson. "Acquisitions and network identity change". European Journal of Marketing. 2011, 45(9). 1470-1500. https://doi.org/10.1108/03090561111151853

Vancouver

Author

Öberg, Christina ; Grundström, Christina ; Jönsson, Petter. / Acquisitions and network identity change. In: European Journal of Marketing. 2011 ; Vol. 45, No. 9. pp. 1470-1500.

RIS

TY - JOUR

T1 - Acquisitions and network identity change

AU - Öberg, Christina

AU - Grundström, Christina

AU - Jönsson, Petter

PY - 2011

Y1 - 2011

N2 - Abstract in UndeterminedPurpose - The purpose of the paper is to discuss whether or not an acquisition changes the network identity of an acquired firm and, if so, how. This study aims to bring new insights to the corporate marketing field, as it examines corporate identity in the context of how a company is perceived because of its relationships with other firms. The focus of this research is acquired innovative firms.Design/methodology/approach - This paper adopts a multiple case study approach. Data on four acquisitions of innovative firms were collected using 41 interviews, which were supplemented with secondary data.Findings - Based on the case studies, it can be concluded that the network identity of the acquired firms does change following an acquisition. The acquired firms inherited the acquirers' identity, regardless of whether or not the companies were integrated. Previous, present and potential business partners regarded the innovative firms as being more solvent, but distanced themselves. In addition, some of them regarded the innovative firms as competitors.Practical implications - Changes in the way a firm is perceived by its business partners, following an acquisition, will influence the future business operations of the firm. Expected changes to business relationships should ideally be considered part of due diligence. Acquirers need to consider how they can minimise the risks associated with business partners' changed perceptions of acquired firms.Originality/value - This paper contributes to the research on identity, through discussion of the consequences of an acquisition for the identity and relationships of a firm. It also contributes to the existing corporate marketing literature, through consideration of perceptions at a network level. Furthermore, this paper contributes to merger and acquisition literature, by highlighting the influence of ownership on relationships with external parties.

AB - Abstract in UndeterminedPurpose - The purpose of the paper is to discuss whether or not an acquisition changes the network identity of an acquired firm and, if so, how. This study aims to bring new insights to the corporate marketing field, as it examines corporate identity in the context of how a company is perceived because of its relationships with other firms. The focus of this research is acquired innovative firms.Design/methodology/approach - This paper adopts a multiple case study approach. Data on four acquisitions of innovative firms were collected using 41 interviews, which were supplemented with secondary data.Findings - Based on the case studies, it can be concluded that the network identity of the acquired firms does change following an acquisition. The acquired firms inherited the acquirers' identity, regardless of whether or not the companies were integrated. Previous, present and potential business partners regarded the innovative firms as being more solvent, but distanced themselves. In addition, some of them regarded the innovative firms as competitors.Practical implications - Changes in the way a firm is perceived by its business partners, following an acquisition, will influence the future business operations of the firm. Expected changes to business relationships should ideally be considered part of due diligence. Acquirers need to consider how they can minimise the risks associated with business partners' changed perceptions of acquired firms.Originality/value - This paper contributes to the research on identity, through discussion of the consequences of an acquisition for the identity and relationships of a firm. It also contributes to the existing corporate marketing literature, through consideration of perceptions at a network level. Furthermore, this paper contributes to merger and acquisition literature, by highlighting the influence of ownership on relationships with external parties.

KW - Corporate identity

KW - Acquisitions and mergers

KW - Corporate marketing

KW - Corporate branding

KW - Business-to-business marketing

KW - Organisational identity

U2 - 10.1108/03090561111151853

DO - 10.1108/03090561111151853

M3 - Article

VL - 45

SP - 1470

EP - 1500

JO - European Journal of Marketing

JF - European Journal of Marketing

SN - 0309-0566

IS - 9

ER -