Supply Chain & Logistics Synergies in Post-Merger Environment: The Case of Ethiopian Construction Corporation
No Thumbnail Available
Date
2017-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
Mergers and acquisitions represent a major source of organizational change and are closely related to the strategic focus. Synergies or rather the absence of synergies has been blamed for many failures in regards to mergers and acquisitions In this context, mergers and acquisitions are likely to become an even more important consideration in strategic planning and implementation.
The data for the study was collected from 32 employees of ECWC. The relationships proposed in the framework were tested using Pearson correlation, and the causal relations were analyzed using regression analysis. From the result of the analysis it is concluded that there is strong relationship between realized synergies, strategic combination benefits and organizational integration. Besides, pre-merger strategic decision making of strategic combination benefits and strategic fit & post-merger integration has also an influence on post-merger synergy realization.
Therefore, in order to realize merger synergies executives needs to carefully articulate combination potential & fit to maximize maximum business potential and most importantly organizational integration is a critical accelerator in capturing M&A synergies
Description
Keywords
Realized Synergies, Business Combination Benefits, Strategic Fit