Managerial coordination challenges in the alignment of capabilities and new subsidiary charters in MNEs

Subsidiary-level change requires the alignment of subsidiary charters and capabilities. Yet, the mechanisms through which the alignment of charters and capabilities unfolds are not yet well understood. In this paper, we investigate alignment from the perspective of managerial coordination. Drawing on a longitudinal study of a global IT firm, we identify three coordination mechanisms (charter-, experience-, and interaction-based coordination). By tracing the shifts in these coordination mechanisms over time and by specifying the implications of each mechanism for capability level change, we explain how managerial coordination influences alignment via subsidiary level capability change as well as alignment via the potential renegotiation of charters. This also allows us to provide new insights into situations of misalignment by explaining that particular mechanisms of coordination may become a source of decoupling between subsidiary actions and HQ mandates and may also result in capability level inertia. Moreover, while prior research has already acknowledged the role of interaction-based coordination for capability level change we show how and why such a mechanism of coordination emerges

Synergy Evaluation in Mergers and Acquisitions:An Attention-Based-View

A core objective of corporate development relates to scope decisions, which regularly involve Mergers and Acquisitions (M&A). The dominant idea behind M&A is often captured by the umbrella term “synergy”. Yet, while performance is the key variable of most M&A studies, how firms arrive at a particular synergetic value for a target firm is not well understood. In this paper, we contribute to this body of research. We argue that understanding the determination of synergies in M&A, requires a look at the mechanisms that guide managerial attention to-wards specific valuation practices and synergy types. Specifically, by drawing on the attention-based view of the firm, we show that the evaluation of synergies cannot be divorced from the underlying attention structure in the M&A context and the various valuation practices that constitute different synergy types. Our analysis suggests that synergies often do not reflect the true potential of acquisitions. We reveal that this is due to an attentional crowding-out effect: The congruence of M&A attention structures with valuation practices for functional synergies crowd out the attention allocation to business models and strategic synergies. We describe the characteristics of this crowding-out effect as well as its implications

The exploration phase of replication:the role of autonomous action for overcoming knowledge boundaries in replicator organizations

Replication strategies rely on the exploration of new knowledge. An important source of new knowledge is the transfer of unit level experience to HQ, a process referred to as reverse knowledge flows. Such knowledge flows are fraught with difficulty as formal mechanisms often break down due to diverging business interests of unit and HQ managers. This study brings together research on knowledge stickiness and autonomous action to provide a new avenue for understanding RKF after formal mechanisms break down. By drawing on an exploratory study of a franchise network, we provide an insight into how autonomous action reduces initiation stickiness, but potentially increases implementation stickiness. Our analysis suggests that the role of autonomous action for reverse knowledge flows is moderated by unit managers’ resource expectations that emerge as a result of autonomous action. Exploring the interplay of autonomous action and knowledge stickiness provides new explanatory means for understanding reverse knowledge flows in replicator organizations

Putting strategy into action – The role of artefacts for business format replication

In order to facilitate the implementation of replication strategies, organizations often use a variety of artefacts such as manuals and handbooks. Existing research has largely focused on the extent to which artefacts can act as knowledge repositories that help to facilitate replication. This body of literature has made significant contributions to our understanding of the role of replication, but has focused more on highlighting key challenges involved in the codification of knowledge. This paper demonstrates that artefact based replication is a double edged sword. While replication is enabled by, ‘configuring’ artefact-action relationships (focussing, situating, coordinating) our analysis also reveals that replication is constrained by ‘decoupling’ artefact-action relationships (accounting, differentiating, disengaging). Our findings contribute to research on replication and provide a more nuanced understanding of why the implementation of replication strategies might fail. We also add to the recent debate on socio-materiality in strategy research more generally

When the parent imitates the child:Strategic renewal through separation and reintegration of subsidiaries

This paper shows how the separation and subsequent reintegration of a subsidiary becomes a source of strategic renewal for the parent company. We develop a process model that reveals how structural ambidexterity can generate ‘proximate isomorphism’ that gives rise to parent level exploration and the parent’s gradual convergence with the subsidiary. This creates the conditions for reintegration, and ultimately, strategic renewal. We identify the triggers for proximate isomorphism as well as the mechanisms through which it unfolds. We draw on the longitudinal analysis of strategic renewal of Immochan between 2006 and 2018. Our findings contribute to extant research by developing the link between structural ambidexterity and strategic renewal and, particularly, by showing that proximate isomorphism acts an integrating mechanism between the parent and the explorative unit

Run or Hide:Changes in Acquisition Behaviour During the Covid-19 Pandemic

Purpose: M&A are an important strategic tool for continuous adaptation, sustainable corporate development, and external growth. At the same time, M&A involve high levels of risk with mixed performance results even under normal circumstances. Even though the M&A market was continuously growing for the last decade, it was abruptly ended by the Covid-19 pandemic as executives were more concerned about liquidity than with long term growth strategies. This raises the question how M&A behaviour is affected by the economic fall-out of the Covid-19 pandemic. Design/methodology/approach: Mixed method research design Findings: We particularly investigate how target selection as well as synergy management are affected by the pandemic. Our analysis reveals four archetypical responses to the Covid-19 crisis. We describe those responses in detail and analyze antecedents that seem to influence firms’ acquisition behaviour during the pandemic. Originality: The paper draws on survey and interview data of M&A practitioner

Managing to make markets : Marketization and the conceptualization work of strategic nets in the life science sector

Abstract This paper presents one of the first studies to identify and explain the marketization work of a strategic net. Through a study of the Stevenage Bioscience Catalyst – a strategic net formed to support the marketization of Life Science Discoveries - we generate insights into the everyday work that makes marketization happen. Marketization is understood as the process that enables the conceptualisation, production and exchange of goods. Our findings focus on one specific form of marketization work found to be core to the strategic net: conceptualisation work. Three forms of conceptualisation work are identified: conceptualising actors' roles, conceptualising markets and conceptualising goods. These manifest as routinized, recursive practices. Our analysis reveals how these practices gather together multiple forms of scientific, technical and market knowledge to generate new market devices that transform market rules and conventions, and introduce new methods and instruments of valuation that change the market. In contrast to extant studies that claim a strategic net's activities influence markets; our findings position the conceptualisation work of the strategic net as constitutive of markets and the broader system of provision for ‘healthcare’ and ‘health futures’

Managerial coordination challenges in the alignment of capabilities and new subsidiary charters in MNEs

Subsidiary-level change requires the alignment of subsidiary charters and capabilities. Yet, the mechanisms through which the alignment of charters and capabilities unfolds are not yet well understood. In this paper, we investigate alignment from the perspective of managerial coordination. Drawing on a longitudinal study of a global IT firm, we identify three coordination mechanisms (charter-, experience-, and interaction-based coordination). By tracing the shifts in these coordination mechanisms over time and by specifying the implications of each mechanism for capability level change, we explain how managerial coordination influences alignment via subsidiary level capability change as well as alignment via the potential renegotiation of charters. This also allows us to provide new insights into situations of misalignment by explaining that particular mechanisms of coordination may become a source of decoupling between subsidiary actions and HQ mandates and may also result in capability level inertia. Moreover, while prior research has already acknowledged the role of interaction-based coordination for capability level change we show how and why such a mechanism of coordination emerges. ABSTRACT FROM AUTHO

Polyacrylate polymers as immobilizing agents to aid phytostabilization of two mine soils

We evaluated the effect of polyacrylate polymers as immobilizing agents to aid phytostabilization of two mine soils. One soil had a very low pH (3.7) and a large Pb content, while the other was less acidic but had a greater content of Cu and Zn. Growth of perennial ryegrass (Lolium perenne L. cv. Victorian) was stimulated in polymer-amended soils. After ryegrass had been growing for 35 days, the amounts of water-extractable Cu, Zn and Pb (one soil only) present in the polymer-amended soils were smaller than those from soil without polymer. The number of culturable heterotrophic bacteria and the activities of dehydrogenase and b-glucosidase increased following polymer application. In contrast, the urease activity was impaired by polymer application, presumably because of the presence of ammonium as a counter ion. In another experiment, the acidic soil was limed to pH 6.5 before growth of perennial ryegrass took place. Liming the soil greatly enhanced plant growth, but by the third cut, differences between treatments became apparent, with plants from polymer-amended limed soil accumulating a greater biomass compared with limed soil without polymer. After ryegrass had been growing for 119 days (five cuts), the amount of water-extractable Pb and the urease activity in the polymer-amended soil were smaller than those from limed soil without polymer. The numbers of culturable heterotrophic bacteria and the activities of dehydrogenase, b-glucosidase and acid phosphatase increased following polymer application. The results are consistent with phytostabilization being achieved by the application of polyacrylate polymers, improving soil chemical and biological properties. In very acidic soils, the use of both a liming material and polymer together appears to give a considerable advantage