Case selection

activities that were to be integrated as a consequence of the M&A. In two cases the purchased unit was combined with Trelleborg on the division level (Chase-Walton- and CRP-cases, see Chapter 7), and in two cases (CMP/Kléber- and Dynaflex-cases) the combination was made on the business unit level. Chapter 6 will explain how the heterogeneous organizational structure of Trelleborg renders integration, sometimes on the division level and sometimes on the unit level when activity integration is sought. In short, the reason is that some divisions have one single business model for the whole division, while others can be regarded as a collection of business models where every unit has a distinct set of business activities.

In this study analytical activities followed upon empirical data collection. Consequently, one major analytical phase was to be found in relation to the termination of the first case study. A second analytical phase was based on the Chase-Walton and Dynaflex data. Chapter 8 presents the results of the two first analytical phases. A final analytical phase was directed to the cross case comparison when most empirical data had been collected. In this analysis the level of analysis was raised to group-level. The four cases were contrasted to find similarities and differences. Through comparison it was also possible to identify if any changes in the way Trelleborg was managing IS integration in their M&As had taken place. The results of this analysis will be accounted for in Chapter 9.

in describing a chain of progression and explain an outcome (Dooley and Van de Ven, 1999; Mohr, 1982).

Van de Ven (1992) discusses the selection of cases on which to base research that investigates an organizational development process.

The vast majority of process models are based on retroperspective case studies. Historical cases have the advantage of minimizing risk, as cases can relatively easily be identified as relevant or irrelevant for the process model that the researcher is working on. However, Van de Ven stresses that “it is widely recognized that prior knowledge of the success or failure of a strategic change effort invariably biases a study’s findings”

(Van de Ven, 1992, p. 181). Historical cases should be accompanied with real-time studies of processes as they unfold in their natural field settings. Van de Ven explains and exemplifies:

For example, if the purpose of a study is to understand how to manage the formulation or implementation of an organizational strategy, it will be necessary for researchers to place themselves into the manager’s temporal and contextual frames of reference.

Presumably, this would initially involve conduction of retrospective case history to understand the context and events leading up to the present strategy being investigated. However, the major focus of the study would entail conducting real-time observations of the events and activities in strategy development while they occur in time, and without knowing a priori the outcomes of these events and activities.

(Van de Ven, 1992, p. 181)

Van de Ven (1992) argues that regularly scheduled and intermittent real-time observations are necessary to observe if and how changes occur over time. Repetitive surveys and interviews provide a basis to define if and what changes occur. Real-time observations are needed to understand how theses changes occur. The need for empirical data puts an intense demand on the level of data access. Approaching IS integration in M&A from a process perspective requires access to corporate strategic planning and ability to actually study the integration work as it takes place.

When studying such a phenomenon as integration in M&A case selection one has to include some degree of pragmatism (Mehta &

Hirschheim, 2007). The M&A activity is at the very core of a company’s strategic processes and the access required to actually grasp the essential of the integration on a deeper level is a problem when

doing research in this field. In May 2004 the School of Economics and Management at Lund University entered into a partnership agreement with the multinational industry group Trelleborg AB. In a communiqué published by Trelleborg AB the research setup was described as a “learning partnership” where researchers and the company would work together towards mutually established goals (Trelleborg AB, 2004). Trelleborg AB has an outspoken strategy of growth through M&A and makes between 5 and 10 acquisitions yearly.

It consists of a typical example of how contemporary business works with extensive M&As, and how it experiences the complexity of related integration work. The partnership opened up the way for empirical data collection of the kind needed to answer this study’s research questions, and the selection of Trelleborg AB as source of empirical data was thus natural.

According to Van de Ven (1992), a minimum of two cases are needed - one retroperspective and one real-time. However, more cases improve the chances for more solid research findings (Larsson, 1990) and better understood mechanism relating events (Van de Ven, 1992).

In total, four case studies were carried out at Trelleborg before the framework had reached a reasonably stable level where the theory was sufficient to constitute the explanatory basis for prescriptive theory.

Additional cases could have introduced a few more relations between IS integration in M&A or marginal adjustments, but generally the last cases confirmed the findings regarding the framework’s major themes and basic structure. To substantially improve the framework and research findings, it was deemed that a completely new research approach would be needed, for example, a quantitative or ethnography-inspired study. This is further discussed in the conclusions chapter that addresses future research needs.

The extensive understanding needed of the organizational context and the managerial situation are emphasized as an argument for regarding only cases within the organization, Trelleborg AB. In addition, no study on IS integration and M&A has thus far investigated several M&As and related IS integration made by the same organization. Studying four cases by the same company would give the opportunity to see similarities and dissimilarities in the way IS integration was managed, thus giving a more profound understanding of the management. Appendix B presents a complete list of acquisitions undertaken by Trelleborg AB from 1991 to 2006. Some cases naturally

were more appropriate as empirical sources. For example, the takeover of the Japanese distribution company, Eika, could be considered inappropriate, as access to empirical data was limited by geographical distance and separate languages. In the search for cases was also included the coverage of dimensional attributes. The overarching condition for selecting cases was the estimated potential of the cases to increase the understanding of management of IS integration in M&A.

This was the condition in general terms: the specific characteristics that would increase the understanding were specific to each of the cases. The specific sought for characteristics in each case are explained below.

Selection had in common that the cases were selected to provide a broad coverage, ideally covering all variations of the theoretical framework. Selection was therefore made in collaboration with Trelleborg representatives by matching the available cases and their potential contribution to the study’s purpose and research questions.

5.3.1 Case A: CMP/Kléber

The selection of the first case was decided upon in collaboration with informed members of Trelleborg AB. The most important consideration before selecting this case was based on the awareness that integration following an M&A could take considerable time. The first condition was thus that the case should present a more or less finished integration process. Based on the methodological approach where theory and empirical findings were developed hand in hand, it was considered that for a first case, it was also desirable with an integration process that was known beforehand would end up in integrated IS. As explained in Chapter 4, IS integration is not required in all M&As. An initiative that conformed to both these demands and according to informed Trelleborg representatives included many typical aspects of synergy leverage, the integration issues involved the purchase of CMP/Kléber Industrie. The deal was closed in 1996, and in 2005 the IS integration was finally concluded.

5.3.2 Case B: Dynaflex

The second case drew the attention because of one significant difference compared to the CMP/Kléber case. While in the first case it took 10 years until IS was finally integrated, the desired level of IS integration

was in this case reached within a couple of months. Compared to the CMP/Kléber case, this case also addressed the weakness of being based on actions that had been taken several years ago. The Dynaflex integration presented fresh data and the possibility to reach all involved parts. It also conformed to the criteria of involving some degree of integration and not being an object for complete preservation or holding.

5.3.3 Case C: Chase-Walton

The reasons behind the selection of the third case differed in one decisive aspect from reasons for selecting the two first cases. A retrospective case study can give a good overview of which concepts and problems may appear, but to actually understand the progression of an organizational change process, there is no other option than taking part of the process as it takes place. Real-time observations are needed to understand how theses changes occurred (Van de Ven, 1992). To conduct this type of real-time studies, an extensive organizational access is required, an access that very few researchers have achieved.

Fortunately, this access was provided by Trelleborg AB in the partnership setup of this study.

A second important reason for studying the Chase-Walton integration was the expression by Trelleborg representatives that this case reflected a more proactive approach to IS integration. As no such story had been presented in the existing research publications, it was thought of as being able to significantly influence the understanding of the proactiveness concept. The Chase-Walton case also covered different technologies and a different approach to organizing the information infrastructure which would be relevant to further develop the theoretical framework.

5.3.4 Case D: CRP

The fourth case in this study was the acquisition of British/American CRP Group, a deal which was accomplished at the beginning of 2005.

The first two cases were studied in retrospection, whereas the third case was caught in the final stages of its integration process. This fourth case, however, did provide the opportunity to study the early stages of the process as access was gained only weeks after the deal was

announced. The anticipated integration need was minor to the needs in the previous cases, which increased the probability for the chances of being able to follow the process to its end. In addition, the CRP-case was selected by theoretically driven conditions. It covered a number of attributes of the framework that were not covered by the other cases, such as technology used, IS importance to business, and desired integration level, which could reveal additional aspects of the relationship between IS integration and M&A.