Case summaries
| Case I: PublishingHouse’s acquisition of TeachingCorp | Case II: StandardWeb’s acquisition of TailoredIT | |
|---|---|---|
| Characteristics of firms | Publishing firm/book manufacturer acquiring firm specialised in workplace training/education Acquirer a dominating worldwide player in its field of operations; Acquired party big actor on country level | Manufacturer of software for websites acquiring local IT consultancy firm Acquirer operating on an extended Nordic level, acquired party local player in the city of the acquirer's head office |
| Data collection | Interviews with managing director, country manager (UK), marketing manager, CFO, sales and customer manager, product manager, procurement manager, division manager, PublishingHouse; marketing manager, former CEO, and former CFO, TeachingCorp; procurement managers, Customer firms 1–3 Documents: approx. 500 newspaper items, annual reports, press releases, websites | Interviews with CEO, CFO, marketing manager, production manager, design manager, StandardWeb; marketing manager, CEO, CFO, 2 consultants, TailoredIT. CEOs, Customer firms 1–2 Documents: approx. 100 newspaper items, annual reports, press releases, websites |
| Initial integration, business model | Functions: Acquirer regards servitisation as only being about the customer interface and resists integrating this, while integrating administrative routines Degree: Non-integration of customer interface, complete integration of internal organising Direction: From acquirer to acquired party | Functions: Only board integrated through putting acquirer representatives on the acquired party’s board Degree: Non-integration with a focus on not changing value-carrying functions for customers Direction: Acquired party’s operations in focus and how to preserve them |
| Initial integration, customer orientation | Customer orientation not acknowledged by acquirer. Product orientation prevailed affecting offerings and integrations | Acquirer focuses on acquired firm’s business model when deciding not to integrate, but with the consequence that customer orientation prevails |
| Initial integration, consequences | Acquirer remains non-servitised Acquired party experiences how acquirer’s routines affect activities of business model and through stakeholder losses, external activities Upstream, collaboration stakeholders leaving due to acquisition. Customers perceive change to value-orientation | Acquirer remains non-servitised Acquired party remains unaffected by the acquisition due to non-integration Customers and other stakeholders remain due to no changes in either customer orientation or business model |
| Initial integration, servitisation, type labelled as | Rhetorical integration | Insulated integration |
| Subsequent integration, business model | Functions: Acquired firm business model including sourcing alternatives adopted to new division Degrees: Separate division. Integration through adopting Direction: From acquired to new division Timing: Following acquirer obtaining capabilities through TeachingCorp acquisition | Functions: Operations and capabilities linked to customer value, relationships and partnerships integrated among targets. These pertain across functions. Technological skills kept separate. Acquirer kept separate Degree: Complete integration across mentioned functions of targets Direction: Combining across targets Timing: Following subsequent acquisitions |
| Subsequent integration, customer orientation | Customer orientation taught from past acquisitions led to the development of a new niche of operations focussing on the value in learning | Customer orientation guiding selection of targets in subsequent acquisitions, driven by how various targets' offerings combined build value for customers |
| Subsequent integration, consequences | Acquirer separated into corporate firm with customer orientation but not business model and division with business model and customer orientation New offerings directed at new customers Collaboration with new stakeholders in division | Acquirer adopts customer orientation but not business model Acquired firms with business model and customer orientation New offerings to new and present customers |
| Subsequent integration, servitisation, type labelled as | Transformative integration | Transformative integration in terms of acquiring firms to create value for customers (building a portfolio for customers). Insulated integration in terms of integrations of individual targets |
| Case I: PublishingHouse’s acquisition of TeachingCorp | Case II: StandardWeb’s acquisition of TailoredIT | |
|---|---|---|
| Characteristics of firms | Publishing firm/book manufacturer acquiring firm specialised in workplace training/education | Manufacturer of software for websites acquiring local IT consultancy firm |
| Data collection | Interviews with managing director, country manager (UK), marketing manager, CFO, sales and customer manager, product manager, procurement manager, division manager, PublishingHouse; marketing manager, former CEO, and former CFO, TeachingCorp; procurement managers, Customer firms 1–3 | Interviews with CEO, CFO, marketing manager, production manager, design manager, StandardWeb; marketing manager, CEO, CFO, 2 consultants, TailoredIT. |
| Initial integration, business model | ||
| Initial integration, customer orientation | Customer orientation not acknowledged by acquirer. Product orientation prevailed affecting offerings and integrations | Acquirer focuses on acquired firm’s business model when deciding not to integrate, but with the consequence that customer orientation prevails |
| Initial integration, consequences | Acquirer remains non-servitised | Acquirer remains non-servitised |
| Initial integration, servitisation, type labelled as | ||
| Subsequent integration, business model | ||
| Subsequent integration, customer orientation | Customer orientation taught from past acquisitions led to the development of a new niche of operations focussing on the value in learning | Customer orientation guiding selection of targets in subsequent acquisitions, driven by how various targets' offerings combined build value for customers |
| Subsequent integration, consequences | Acquirer separated into corporate firm with customer orientation but not business model and division with business model and customer orientation | Acquirer adopts customer orientation but not business model |
| Subsequent integration, servitisation, type labelled as |
Source(s): Table by author
Sharing content requires targeting cookies to be enabled. Please update your cookie preferences to use this feature.