Table 1

Chronological description of the key events

PeriodYearEvents
  Acquisition announcement
Acquirer acknowledged the unique capabilities of the target
Period IYear 1–2Structural intervention to preserve target capability
  
  • Granting autonomy to target management

  • Key target managers retained

  • Target management maintain autonomy as in pre-merger

  • Creation of new BU

Period IIYear 3–4Managerial interventions to facilitate two-way knowledge transfer
  
  • Move of the target HQ

  • Managerial integration at the target HQ

  • Key target managers retained

  • Target subsidiary managers retained; operations continued as in pre-merger

Period IIIYear 5-Year 7
  • Complete integration to enhance coordination

  • Appointment of acquirer managers to lead the BU

  • The launch of a new brand identity

  • Frequent visits and communication of BU top management in subsidiaries

  • Codification of implicit target knowledge

  • Communication to employees highlighting the characteristics of acquirer and target (Data collection started in Y5)

  • Target subsidiary managers lost operational autonomy

  • Harmonization at the subsidiary level

  • Formalization and standardization

  • Employee turnover

 Year 10Operational integration complete
Further management changes within the BU
Efforts to recover in customer relationships
 Year 12The BU was sold following the corporate decision to narrow down focus

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