The Paradox of Post-acquisition IS Integration Preparation: Preparing under Incomplete Information

Peter J. Wynne, Stefan Henningsson

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

Abstract

In this paper, we propose the paradox of preparation as a salient dilemma facing IT organizations in firms anticipating acquisitions or acquisition activity. The paradox of preparation originates in the need to start preparations for post-acquisition IS integration long before the legal combination is concluded, and the contradictory observation that only after the deal is concluded will it be known to the acquirer what they should have prepared for. Based on an in-depth, explorative study of how a large multi-national company prepared for an anticipated and later enacted acquisition with another large multi-national company, we develop a process theory depicting how this paradoxical tension impacts IS integration preparation activities in the period leading up to the acquisition. Initially, preparations are based on assumptions about the future challenge. As assumptions are confirmed or rejected, focus of preparation activities are recurrently revised. To handle uncertainty of assumptions, the firm actively considered the scope of possibilities and the universality of activities to manage the paradox of preparation.
In this paper, we propose the paradox of preparation as a salient dilemma facing IT organizations in firms anticipating acquisitions or acquisition activity. The paradox of preparation originates in the need to start preparations for post-acquisition IS integration long before the legal combination is concluded, and the contradictory observation that only after the deal is concluded will it be known to the acquirer what they should have prepared for. Based on an in-depth, explorative study of how a large multi-national company prepared for an anticipated and later enacted acquisition with another large multi-national company, we develop a process theory depicting how this paradoxical tension impacts IS integration preparation activities in the period leading up to the acquisition. Initially, preparations are based on assumptions about the future challenge. As assumptions are confirmed or rejected, focus of preparation activities are recurrently revised. To handle uncertainty of assumptions, the firm actively considered the scope of possibilities and the universality of activities to manage the paradox of preparation.
LanguageEnglish
Title of host publicationProceedings of the 20th IEEE International Conference on Business Informatics. CBI 2018 : Volume 1 Research papers
EditorsHenderik A. Proper, Stefan Strecker, Christian Huemer
Number of pages10
Volume1
Place of PublicationLos Alamos
PublisherIEEE
Date2018
Pages50-59
ISBN (Electronic)9781538670163
DOIs
StatePublished - 2018
EventThe 20th Conference on Business Informatics. CBI 2018 - Vienna, Austria
Duration: 11 Jul 201814 Jul 2018
Conference number: 20
https://cbi2018.big.tuwien.ac.at/

Conference

ConferenceThe 20th Conference on Business Informatics. CBI 2018
Number20
CountryAustria
CityVienna
Period11/07/201814/07/2018
Internet address
SeriesIEEE Conference Series on Business Informatics
ISSN2378-1971

Bibliographical note

CBS Library does not have access to the material

Keywords

  • Mergers and acquisitions
  • Preparation activities
  • Information systems integration
  • Integration method

Cite this

Wynne, P. J., & Henningsson, S. (2018). The Paradox of Post-acquisition IS Integration Preparation: Preparing under Incomplete Information. In H. A. Proper, S. Strecker, & C. Huemer (Eds.), Proceedings of the 20th IEEE International Conference on Business Informatics. CBI 2018: Volume 1 Research papers (Vol. 1, pp. 50-59). Los Alamos: IEEE. IEEE Conference Series on Business Informatics, DOI: 10.1109/CBI.2018.00015
Wynne, Peter J. ; Henningsson, Stefan. / The Paradox of Post-acquisition IS Integration Preparation : Preparing under Incomplete Information. Proceedings of the 20th IEEE International Conference on Business Informatics. CBI 2018: Volume 1 Research papers. editor / Henderik A. Proper ; Stefan Strecker ; Christian Huemer. Vol. 1 Los Alamos : IEEE, 2018. pp. 50-59 (IEEE Conference Series on Business Informatics).
@inproceedings{e0b86acd8ec14128b3e2d34511472ee5,
title = "The Paradox of Post-acquisition IS Integration Preparation: Preparing under Incomplete Information",
abstract = "In this paper, we propose the paradox of preparation as a salient dilemma facing IT organizations in firms anticipating acquisitions or acquisition activity. The paradox of preparation originates in the need to start preparations for post-acquisition IS integration long before the legal combination is concluded, and the contradictory observation that only after the deal is concluded will it be known to the acquirer what they should have prepared for. Based on an in-depth, explorative study of how a large multi-national company prepared for an anticipated and later enacted acquisition with another large multi-national company, we develop a process theory depicting how this paradoxical tension impacts IS integration preparation activities in the period leading up to the acquisition. Initially, preparations are based on assumptions about the future challenge. As assumptions are confirmed or rejected, focus of preparation activities are recurrently revised. To handle uncertainty of assumptions, the firm actively considered the scope of possibilities and the universality of activities to manage the paradox of preparation.",
keywords = "Mergers and acquisitions, Preparation activities, Information systems integration, Integration method, Mergers and acquisitions, Preparation activities, Information systems integration, Integration method",
author = "Wynne, {Peter J.} and Stefan Henningsson",
note = "CBS Library does not have access to the material",
year = "2018",
doi = "10.1109/CBI.2018.00015",
language = "English",
volume = "1",
pages = "50--59",
editor = "Proper, {Henderik A.} and Stefan Strecker and Christian Huemer",
booktitle = "Proceedings of the 20th IEEE International Conference on Business Informatics. CBI 2018",
publisher = "IEEE",
address = "United States",

}

Wynne, PJ & Henningsson, S 2018, The Paradox of Post-acquisition IS Integration Preparation: Preparing under Incomplete Information. in HA Proper, S Strecker & C Huemer (eds), Proceedings of the 20th IEEE International Conference on Business Informatics. CBI 2018: Volume 1 Research papers. vol. 1, IEEE, Los Alamos, IEEE Conference Series on Business Informatics, pp. 50-59, Vienna, Austria, 11/07/2018. DOI: 10.1109/CBI.2018.00015

The Paradox of Post-acquisition IS Integration Preparation : Preparing under Incomplete Information. / Wynne, Peter J.; Henningsson, Stefan.

Proceedings of the 20th IEEE International Conference on Business Informatics. CBI 2018: Volume 1 Research papers. ed. / Henderik A. Proper; Stefan Strecker; Christian Huemer. Vol. 1 Los Alamos : IEEE, 2018. p. 50-59.

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

TY - GEN

T1 - The Paradox of Post-acquisition IS Integration Preparation

T2 - Preparing under Incomplete Information

AU - Wynne,Peter J.

AU - Henningsson,Stefan

N1 - CBS Library does not have access to the material

PY - 2018

Y1 - 2018

N2 - In this paper, we propose the paradox of preparation as a salient dilemma facing IT organizations in firms anticipating acquisitions or acquisition activity. The paradox of preparation originates in the need to start preparations for post-acquisition IS integration long before the legal combination is concluded, and the contradictory observation that only after the deal is concluded will it be known to the acquirer what they should have prepared for. Based on an in-depth, explorative study of how a large multi-national company prepared for an anticipated and later enacted acquisition with another large multi-national company, we develop a process theory depicting how this paradoxical tension impacts IS integration preparation activities in the period leading up to the acquisition. Initially, preparations are based on assumptions about the future challenge. As assumptions are confirmed or rejected, focus of preparation activities are recurrently revised. To handle uncertainty of assumptions, the firm actively considered the scope of possibilities and the universality of activities to manage the paradox of preparation.

AB - In this paper, we propose the paradox of preparation as a salient dilemma facing IT organizations in firms anticipating acquisitions or acquisition activity. The paradox of preparation originates in the need to start preparations for post-acquisition IS integration long before the legal combination is concluded, and the contradictory observation that only after the deal is concluded will it be known to the acquirer what they should have prepared for. Based on an in-depth, explorative study of how a large multi-national company prepared for an anticipated and later enacted acquisition with another large multi-national company, we develop a process theory depicting how this paradoxical tension impacts IS integration preparation activities in the period leading up to the acquisition. Initially, preparations are based on assumptions about the future challenge. As assumptions are confirmed or rejected, focus of preparation activities are recurrently revised. To handle uncertainty of assumptions, the firm actively considered the scope of possibilities and the universality of activities to manage the paradox of preparation.

KW - Mergers and acquisitions

KW - Preparation activities

KW - Information systems integration

KW - Integration method

KW - Mergers and acquisitions

KW - Preparation activities

KW - Information systems integration

KW - Integration method

U2 - 10.1109/CBI.2018.00015

DO - 10.1109/CBI.2018.00015

M3 - Article in proceedings

VL - 1

SP - 50

EP - 59

BT - Proceedings of the 20th IEEE International Conference on Business Informatics. CBI 2018

PB - IEEE

CY - Los Alamos

ER -

Wynne PJ, Henningsson S. The Paradox of Post-acquisition IS Integration Preparation: Preparing under Incomplete Information. In Proper HA, Strecker S, Huemer C, editors, Proceedings of the 20th IEEE International Conference on Business Informatics. CBI 2018: Volume 1 Research papers. Vol. 1. Los Alamos: IEEE. 2018. p. 50-59. (IEEE Conference Series on Business Informatics). Available from, DOI: 10.1109/CBI.2018.00015