![]() ![]() (1957) describe synergy as the superior use of resources to adapt more successfully to a changing environment with increased competitive pressure. Synergy as a concept was introduced in the 1960s in the field of strategic management. Conceptual point of departure 2.1 Acquisitions and synergy realisation The analysis is structured around the conceptual framework including the extended synergy in the dimensions time (pre-acquisition and post-acquisition) and space (integrating firms and business network). The methodology of the study is described followed by a section on the case, which presents three acquisitions in chronological order. The conceptual framework addressed in the paper is presented thereafter. The influence of business networks on acquisition is also explored. The paper begins with synergy as a concept and links this concept to the literature on the development of acquisitions. Thus, the study conceptualises how companies, after acquisitions, may realise synergy in interaction with other companies in a business network and that synergy can be the result of both intended and not intended actions. ![]() The present study aims to contribute with an extended framework on synergy realisation in acquisitions drawing on literature from mainly two fields: business strategy and business networks. To understand such developments, it is not enough to evaluate a company’s own resources without including its business relationships with other actors ( Anderson et al., 1994). We propose that such interconnectedness may not only generate reactions such as levelling out intended synergies but may also generate new and unexpected ones. Thus, including a business network perspective when studying synergy in acquisitions opens for new insights on integration effects. The literature on business networks shows that interconnectedness between companies such as customers and suppliers, may play important roles in realising synergy after an acquisition ( Christofi et al., 2017 Degbey, 2015 Homburg and Bucerius, 2005 Quah and Young, 2005 Lusch et al., 2003 Anderson et al., 2001). In this way, a business network is dynamic ( Ritter and Ford, 2004 Mattsson and Johanson, 2006) and the different actors adapt mutually to each other’s activities ( Anderson et al., 1994 Håkansson and Snehota, 1989). Business relationships are not static, they develop over time ( Hadjikhani and LaPlaca, 2013) and companies react to changes and adapt as a consequence ( Harrison et al., 2010 Håkansson and Snehota, 1989). From a business network perspective, companies are interconnected through business relationships and interactions ( Ford and Håkansson, 2006). However, when companies acquire other companies, only the two involved companies seem to be in focus. In this study, we assume that synergy may emerge, intended or not intended because of an acquisition. Being an important measure of the expected outcome of acquisitions ( Larsson and Finkelstein, 1999), there seems to be a difference between intentions and realisations ( Zollo and Meier, 2008), which makes acquisition planning important ( Epstein, 2005). In the literature, the realisation of synergy appears complicated and not easily achieved ( Garzella and Fiorentino, 2014 Zaheer et al., 2013 Zollo and Meier, 2008) often due to integration problems ( Teerikangas and Thanos, 2018 Cartwright et al., 2012 Mirc, 2012), differences in organisational culture ( Stahl and Voigt, 2008) or difficulties in presenting positive financial performance ( King et al., 2004). Intended synergy is more commonly described than achieved synergy because synergy is not only difficult to attain ( Zaheer et al., 2013 Goold and Campbell, 1998 Porter, 1987) but also to identify and measure ( Garzella and Fiorentino, 2014 Zaheer et al., 2013 Goold and Campbell, 2000). The broadly used concept ( Campbell and Sommers Luchs, 1998) lacks a common definition besides the general “two plus two equals five” ( Garzella and Fiorentino, 2014 Sirower, 1997 Porter, 1987 Carter, 1977). ![]() Synergy is frequently used to legitimise acquisitions ( Mukherjee et al., 2004 Seth et al., 2000 Trautwein, 1990 Porter, 1987) in various types of industries, for example, Mylan’s acquisition of Meda ( Mylan, 2016) in the pharmaceutical industry, Pernod Ricard’s acquisition of Vin and Sprit ( Pernod, 2008) in the food industry, AT&T’s acquisition of Time Warner ( AT&T, 2016) in the communications industry and Volkswagen’s acquisition of Scania ( Volkswagen, 2014) in the manufacturing industry. The full terms of this licence may be seen at Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Copyright © 2021, Johan Holtström and Helén Anderson. ![]()
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