Helene Loe Colman, Audrey Rouzies and Randi Lunnan explore subsidiary-building acquisitions, a complex process involving a triad of actors: the MNC, existing subsidiary, and target.
Through a qualitative study of a Norwegian target acquired by a French MNC with an existing Norwegian subsidiary, they identify tensions between autonomy and integration in local and cross-border integration processes, fueling headquarters–subsidiary relationships and subsidiary cohesion.
For instance, their research revealed two distinct integration processes: local integration between the newly acquired units and the existing Norwegian subsidiary and cross-border integration between the newly acquired units and the French headquarters. Despite tensions between integration and autonomy at local and cross-border levels, the data also showed the emergence of social integration.
Their findings provide novel insights into the complexities of international acquisitions and bridge the M&A and MNC literature. Take your time and find in-depth insights and the complete paper in the Journal of International Business Studies.
Comments