Merging Platform Ecosystems in Technology Acquisitions: A Governance Perspective

Jamie Dowie, Stefan Henningsson, Thomas Kude, Karl Popp

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

Abstract

This paper investigates the issue of merging third-party ecosystems in corporate acquisitions to access innovative technologies and related capabilities. Extant explanations for how technology acquisitions create value are limited to the analysis of the internal capabilities and structures of the merging companies. Given the increasing importance of platforms and value co-creation with third-party providers for companies making technology acquisitions, we complement existing literature by reframing the analysis of technology acquisitions to include the merger of the broader partner ecosystems. Specifically, we draw on theories of ecosystem governance to analyze how ecosystem tensions unfolded during the ecosystem merger and how the acquirer governed these tensions in SAP SE’s acquisition of the e-commerce provider Hybris AG. Our findings suggest that the governance of ecosystem tensions is an important aspect of managing technology acquisitions. We identify the pre-acquisition relation between the acquired company’s ecosystem partners and the acquirer as an important context factor for explaining how a partner company is exposed to the ecosystem tensions during the merger.
This paper investigates the issue of merging third-party ecosystems in corporate acquisitions to access innovative technologies and related capabilities. Extant explanations for how technology acquisitions create value are limited to the analysis of the internal capabilities and structures of the merging companies. Given the increasing importance of platforms and value co-creation with third-party providers for companies making technology acquisitions, we complement existing literature by reframing the analysis of technology acquisitions to include the merger of the broader partner ecosystems. Specifically, we draw on theories of ecosystem governance to analyze how ecosystem tensions unfolded during the ecosystem merger and how the acquirer governed these tensions in SAP SE’s acquisition of the e-commerce provider Hybris AG. Our findings suggest that the governance of ecosystem tensions is an important aspect of managing technology acquisitions. We identify the pre-acquisition relation between the acquired company’s ecosystem partners and the acquirer as an important context factor for explaining how a partner company is exposed to the ecosystem tensions during the merger.
LanguageEnglish
Title of host publicationProceedings of the 25th European Conference on Information Systems (ECIS 2017)
Place of PublicationAtlanta, GA
PublisherAssociation for Information Systems. AIS Electronic Library (AISeL)
Date2017
Pages2301-2316
Article number146
StatePublished - 2017
EventThe 25th European Conference on Information Systems (ECIS) 2017 - Centro Cultural Vila Flor, Guimarães, Portugal
Duration: 5 Jun 201710 Jun 2017
Conference number: 25
http://www.ecis2017.eu/

Conference

ConferenceThe 25th European Conference on Information Systems (ECIS) 2017
Number25
LocationCentro Cultural Vila Flor
CountryPortugal
CityGuimarães
Period05/06/201710/06/2017
Internet address
SeriesProceedings of the European Conference on Information Systems
ISSN0000-0034

Keywords

  • Technology acquisition
  • Integration paradox
  • Ecosystem
  • Software industry
  • Case study

Cite this

Dowie, J., Henningsson, S., Kude, T., & Popp, K. (2017). Merging Platform Ecosystems in Technology Acquisitions: A Governance Perspective. In Proceedings of the 25th European Conference on Information Systems (ECIS 2017) (pp. 2301-2316). [146] Atlanta, GA: Association for Information Systems. AIS Electronic Library (AISeL). Proceedings of the European Conference on Information Systems
Dowie, Jamie ; Henningsson, Stefan ; Kude, Thomas ; Popp, Karl. / Merging Platform Ecosystems in Technology Acquisitions : A Governance Perspective. Proceedings of the 25th European Conference on Information Systems (ECIS 2017). Atlanta, GA : Association for Information Systems. AIS Electronic Library (AISeL), 2017. pp. 2301-2316 (Proceedings of the European Conference on Information Systems).
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abstract = "This paper investigates the issue of merging third-party ecosystems in corporate acquisitions to access innovative technologies and related capabilities. Extant explanations for how technology acquisitions create value are limited to the analysis of the internal capabilities and structures of the merging companies. Given the increasing importance of platforms and value co-creation with third-party providers for companies making technology acquisitions, we complement existing literature by reframing the analysis of technology acquisitions to include the merger of the broader partner ecosystems. Specifically, we draw on theories of ecosystem governance to analyze how ecosystem tensions unfolded during the ecosystem merger and how the acquirer governed these tensions in SAP SE’s acquisition of the e-commerce provider Hybris AG. Our findings suggest that the governance of ecosystem tensions is an important aspect of managing technology acquisitions. We identify the pre-acquisition relation between the acquired company’s ecosystem partners and the acquirer as an important context factor for explaining how a partner company is exposed to the ecosystem tensions during the merger.",
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Dowie, J, Henningsson, S, Kude, T & Popp, K 2017, Merging Platform Ecosystems in Technology Acquisitions: A Governance Perspective. in Proceedings of the 25th European Conference on Information Systems (ECIS 2017)., 146, Association for Information Systems. AIS Electronic Library (AISeL), Atlanta, GA, Proceedings of the European Conference on Information Systems, pp. 2301-2316, Guimarães, Portugal, 05/06/2017.

Merging Platform Ecosystems in Technology Acquisitions : A Governance Perspective. / Dowie, Jamie; Henningsson, Stefan; Kude, Thomas; Popp, Karl.

Proceedings of the 25th European Conference on Information Systems (ECIS 2017). Atlanta, GA : Association for Information Systems. AIS Electronic Library (AISeL), 2017. p. 2301-2316 146.

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

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AB - This paper investigates the issue of merging third-party ecosystems in corporate acquisitions to access innovative technologies and related capabilities. Extant explanations for how technology acquisitions create value are limited to the analysis of the internal capabilities and structures of the merging companies. Given the increasing importance of platforms and value co-creation with third-party providers for companies making technology acquisitions, we complement existing literature by reframing the analysis of technology acquisitions to include the merger of the broader partner ecosystems. Specifically, we draw on theories of ecosystem governance to analyze how ecosystem tensions unfolded during the ecosystem merger and how the acquirer governed these tensions in SAP SE’s acquisition of the e-commerce provider Hybris AG. Our findings suggest that the governance of ecosystem tensions is an important aspect of managing technology acquisitions. We identify the pre-acquisition relation between the acquired company’s ecosystem partners and the acquirer as an important context factor for explaining how a partner company is exposed to the ecosystem tensions during the merger.

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KW - Integration paradox

KW - Ecosystem

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KW - Case study

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Dowie J, Henningsson S, Kude T, Popp K. Merging Platform Ecosystems in Technology Acquisitions: A Governance Perspective. In Proceedings of the 25th European Conference on Information Systems (ECIS 2017). Atlanta, GA: Association for Information Systems. AIS Electronic Library (AISeL). 2017. p. 2301-2316. 146. (Proceedings of the European Conference on Information Systems).