Exploring the Relationship Between Post-acquisition and Supply Chain Disruption Risk of Acquired Firms During the First Year Following Acquisition (A Dynamic Capability Perspective)

Abstract

This doctoral thesis expands on the literature in the under-researched field of supply chain disruption risk management (SCDRM) in the M&A context. In particular, it focuses on the phenomenon of Supply Chain Risk Management (SCRM) and its alignment to the requirements of corporate acquisition contexts. The theoretical framework informing this study draws upon dynamic capability theory (DCT) of the firm organisation to develop an integrated framework explaining what the main risks associated with acquired firms’ supply chain disruptions in post-acquisition are and how dynamic capabilities (DCs) resulting from a corporate acquisition can enable the target company to manage such risks in post-acquisition and increase acquisition performance. In this doctoral research project, the phenomenon of SCRM is investigated through an empirical study of target companies’ supply chain disruption risks in post-acquisition by collecting data from both senior managers in acquired companies (SMACs) and M&A Consultants (M&ACs). While a growing stream of literature has discussed the role of SCRM in coping with the vulnerabilities of modern supply chains and increasing value for firms and explored the ability of firms to deal with internal and external changes during supply chain integration in relation to DCs and integration flexibility, greater attention is needed to understand how dynamic capabilities benefits SCRM in the M&A context and leads to superior performance in post-acquisition. This research begins to address this gap by exploring SCRM in a post-acquisition context and recommends a theoretical framework to manage supply chain disruptions in post-acquisition by emphasising key opportunities and risks associated with the post-acquisition integration process. This research also responds to the call to assess supply chain disruption risks in post-acquisition and strategies to manage post-acquisition integration risks, with the aim of mitigating the high failure rate of M&A deals in the global context. It contributes to management decision-making quality in the post-acquisition process. The findings indicate that sensing, seizing, and reconfiguring DCs play a critical role throughout the post-acquisition integration process and, collectively, help the acquired firm to manage supply chain disruption risks in post-acquisition successfully. The findings reveal that the use of DCs in post-acquisition requires careful attention and shed light on the importance of the SCRM in managing both the disruption risks and DCs resulting from an acquisition.