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Decision-making in conditions of constant change - a case within the automotive industry
Luleå University of Technology, Luleå, Sweden .
Halmstad University, School of Business and Engineering (SET), Centre for Innovation, Entrepreneurship and Learning Research (CIEL), Centre for Technology, Innovation and Marketing Management (CTIM2).
2005 (English)In: Management Decision, ISSN 0025-1747, E-ISSN 1758-6070, Vol. 43, no 2, p. 220-235Article in journal (Refereed) Published
Abstract [en]

Purpose

To analyse how differences in decision-making affected the integration of the R&D functions after Ford's acquisition of Volvo Cars.

Design/methodology/approach

The analysis is carried out in two steps. Step one analyses which type of approach Ford employed to integrate Volvo into the company. Step two analyses how R&D decisions are made by both firms and the consequences of found differences in decision-making on the success of the integration process.

Findings

Ford's approach to the integration of Volvo Cars follows a symbiosis approach, combining a high need of both organizational autonomy and strategic interdependence. A symbiosis acquisition integration approach demands that the decision-making processes are given special attention. The acquired firm's specific decision-making processes need to remain intact in order to preserve its embedded unique R&D value creation capabilities. The decision-making processes should be kept separate in order to prevent disruption.

Originality/value

The paper relates theories about firm acquisition processes and aspects of organization theory to establish a bridge between these research areas.

Place, publisher, year, edition, pages
Bradford: MCB University Press , 2005. Vol. 43, no 2, p. 220-235
Keywords [en]
Automotive industry, Acquisitions and mergers, Change management
National Category
Other Mechanical Engineering
Identifiers
URN: urn:nbn:se:hh:diva-270DOI: 10.1108/00251740510581939Scopus ID: 2-s2.0-20344366265Local ID: 2082/566OAI: oai:DiVA.org:hh-270DiVA, id: diva2:237449
Available from: 2006-11-27 Created: 2006-11-27 Last updated: 2018-03-23Bibliographically approved

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Hörte, Sven-Åke

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf