Supplier management in transnational post-merger integration processes

Carsten Herbes

2006

Our newest book in our Ph.D. series, by Carsten Herbes, deals with supplier management in transnational post-merger integration processes.

More and more European companies are acquiring firms in Japan. The post-merger integration phase is critical to the success of such transactions. However, European buyers are often unaware that cultural differences between themselves and the target company in Japan can pose a threat to this integration.

Carsten Herbes analyzes integration in the realm of purchasing, because synergies in this discipline often make a significant financial contribution to the success of such acquisitions. He lines up typical buyer-side integration activities (such as joint procurement and the transformation of characteristically Japanese supplier relationships into more market-oriented relationships) alongside the objectives of Japanese stakeholders (employees, managers and suppliers) and identifies potential areas of conflict. Drawing on case studies, Herbes discusses both existing conflict areas and problems dealing with conflicts in the overall context of post-merger integration. He then goes on to propose solutions.

For the purposes of post-merger integration projects in Japan, the findings can help companies draw up an appropriate portfolio of integration activities, especially in the area of purchasing, to anticipate opposition from stakeholders and thus to tackle such opposition proactively.