Abstract
This paper studies the role of budgets in implementing the systems integration strategies in an Australian post-acquisition case of two organisations and reducing its associated often-regarded high risks. It attempts a fresh narrative approach to examine the evolution of accounting and its effects on the challenges of post-acquisition integration processes by using the performative approach such as the sociotechnical networks of Actor Network Theory in a broader analytical framework as a possible solution to reducing the risks inherent in systems integration. The methodology of the case study is based on Callon’s model of Four-Moment translation where integration strategy and budgets are regarded as social practice and defined relationally as bundles of activities and take form in and through practice and interaction between diverse actors and actants. A qualitative approach is adopted in the examination of the systems integration networks in an Australian post-acquisition case. Data was collected and analysed using semi-structured interviews. It was found, through the examination of the routine practices of systems integration strategy making and how people enact and draw on a certain financial report on a daily basis to perform systems integration network strategies, that material forms of accounting act as a powerful structuring and inscription tool in integration activities, thus shaping integration strategic options and post-acquisition economic conditions of the organisation. The result shows how the risk could be reduced in the post-acquisition system integration. The research contributes to the risk, change, and accounting literatures by providing insights into the mundane and ordinary practices of different aspects of integration strategy making, and the way employees enact and draw on accounting numbers on a day-to-day basis to perform systems integration network strategies. This case study facilities this research to be further developed and broadened in terms of other cases, industries, and countries.
Highlights
Introduction published maps and institutional affilAcquisitions are seen as an important growth strategy and are commonly used by corporate executives and practitioners for business expansion purposes
The National Human Resources Manager further explained: “We offer in house training and that is what happens . . . say we hire someone and they sit in customer service, ok, they get the overall induction, but we get the most experienced customer service person to train that new person, and that is how it works, and sometimes you know as time goes on, that new person becomes very experienced and they can take on the role of training”
There were trials, certain people going in different areas and if it worked it worked, if it didn’t, we found another fit that would suit their skill set . . . what they do have access to I suppose, is a good remuneration package, I can guarantee you that everyone is paid above award, we work very closely with the individuals to make sure they are happy in their roles and that is both working for them and the company . . . ”
Summary
Acquisitions are seen as an important growth strategy and are commonly used by corporate executives and practitioners for business expansion purposes. Continuing research on strategic integration in the post-acquisition process is due to the rich literature reporting the failures of most acquisitions and mergers world-wide, including in Australia. Yaw (2016) reported that “M & A failure rate is very high; averaging about. 50%, regardless of the initial high hopes” and noted 1.) “the integration stage as one of the critical stages within the whole M & A process which can contribute immensely to M & A failure”. The year 2015 witnessed the highest ever global merger and acquisitions (M&A). In 2018, Australia experienced 1900 M&As, with a value of approximately $185 billion with many of them failing because risks were not fully understood (YouLegal 2019).
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