Title: The role of product lines in determining the degree and speed of integration: evidence from the pharmaceutical MNCs in cross-border acquisitions
Authors: Robina Rashid; Yuosre F. Badir; Adeel Tariq; Bilal Afsar
Addresses: School of Management, Asian Institute of Technology, Klong Luang, Thailand ' School of Management, Asian Institute of Technology, Klong Luang, Thailand ' NUST Business School, National University of Sciences and Technology, Islamabad, Pakistan ' Department of Management Sciences, Hazara University, Mansehra, Khyber Pakhtunkhwa, Pakistan
Abstract: Despite the growing number of acquisitions of Business Units (BUs) by Multinational Companies (MNCs), international business literature is limited to investigating the post-acquisition integration at the firm level. Therefore, this research investigates MNCs' strategic motivation in acquiring BUs and how they manage the post-acquisition integration at the BU level. Specifically, this article focuses on studying the pivotal role of acquired BU's product lines in determining the degree and speed of integration. Using multiple case study method in cross-border acquisitions, the analysis reveals three findings. First, acquired BU's product lines are the strategic motive for the acquirer MNCs and, therefore, become significant in the decisions taken during post-acquisition integration. Second, the three phases of acquired product lines, namely marketed, upcoming, and Research and Development (R&D) pipeline, set the speed of integration from fast to slow. Third, acquired product lines' market relatedness determines the degree of integration between the acquirer and acquired BUs.
Keywords: cross-border acquisitions; MNCs; product lines; market relatedness; degree of integration; speed of integration.
European Journal of International Management, 2022 Vol.17 No.1, pp.27 - 59
Received: 22 Nov 2019
Accepted: 10 Sep 2020
Published online: 20 Dec 2021 *