Title: Acquisition and collaboration as determinants of organisational structure

Authors: Alnoor Bhimani; Kjell Hausken; Mthuli Ncube

Addresses: Department of Accounting, London School of Economics, Houghton Street, London, WC2A 2AE, UK ' Faculty of Social Sciences, University of Stavanger, 4036 Stavanger, Norway ' African Development Bank Group, 15 Rue du Ghana, Tunis, Tunisia; Graduate School of Business Administration, University of Witwatersrand, 2 St David's Place, Parktown, Johannesburg, South Africa

Abstract: We analyse acquisition and collaboration as two dimensions underlying hybrid enterprise structures. Two two-period games with discounting conceptualise firm creation path-dependently, compared with one simultaneous game. The impact of organisational boundary changes via imposing required processes on acquired units is assessed, alongside the impact of new acquired units on the organisation's priorities. The organisation's incentive to enhance operational standardisation increases ceteris paribus with the specification diversity among the units within the organisation under certain conditions. Units within an organisation are less prone to acquire new units, the more the mean specification preference of inside units deviates from the mean specification preference of non-acquired units for specification that can be expected to become standardised subsequently. Conversely, inside units are more likely to acquire new units before choosing collaboration, the more mean specification preference of inside units deviates from the mean preference of non-acquired units for specifications that have already been harmonised.

Keywords: organisational structure; acquisitions; collaboration; extended firms; operational specification diversity; market; hierarchy; widening; deepening two-period game; discounting; hybrid enterprises; enterprise structures.

DOI: 10.1504/IJISM.2012.051039

International Journal of Integrated Supply Management, 2012 Vol.7 No.1/2/3, pp.3 - 37

Accepted: 28 Feb 2012
Published online: 10 Apr 2015 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article