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Integration Vacuum: Creating Action Space for Global Strategy Implementation in International Acquisitions
Authors:Helene Loe Colman  Birgitte Grøgaard
Institution:1. BI Norwegian Business School;2. University of Calgary in Canada
Abstract:Many multinationals rely on acquisitions when expanding internationally. However, cross‐border integration processes are complex and often result in a looser integration than intended. In this study, we examine the postacquisition process in a multinational seeking global integration of its geographically dispersed organizational units. We find that politicization and ambiguity lead to integration vacuum where top‐down initiatives fail to achieve desired integration outcomes. However, the integration vacuum creates expanded space of action for the acquired firm to initiate unexpected bottom‐up integration. We contribute to the literature on multinationals by illuminating the challenges they face when extending their dominant strategic logic to international acquisitions. Furthermore, we identify the process through which politicization and ambiguity lead to integration vacuum that allows the foreign subsidiary an expanded space of action wherein it can initiate bottom‐up integration efforts. © 2013 Wiley Periodicals, Inc.
Keywords:
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