Purpose - This paper aims to illustrate the importance of introducing the integration manager (i.e., an executive position used to channel the acquiring firm’s course of action and strengthen the success of a post-acquisition integration process) within the acquiring firm’s board of directors.Design/methodology/approach – This is a theoretical paper that introduces the integration manager within the board of privately held firms going internationally via acquisitions and serving as an “out-insider” director able to balance the conflicting demands of the previously separated entities during their integration process. The authors present an explanatory case study that empirically contributes to board of directors’ design for internationalization.Findings - We posit that the integration manager serves as an “out-insider” director of the board for privately held firms, possessed by large-block shareholders, going internationally via acquisitions, providing the necessary expertise and knowledge of the target firm’s products and industry.Originality/value – The provided study aims to demonstrate that international acquisitions, even though apparently less risky than greenfield investments, may require additional neutral information flow – both within the due diligence process and the post-acquisition integration – that only outsiders possess. Such outsider has been individuated in the integration manager whose crucial role focuses on smoothing the pre- and post-acquisition integration processes.Keywords Board of directors, acquisitions, integration manager, corporate governance.Paper type Research paper

Internationalization of firms: revitalizing the board of directors after a cross-border acquisition

PISANO, VINCENZO;FARACI, Rosario Francesco Antonio;PICONE, PASQUALE MASSIMO
2017-01-01

Abstract

Purpose - This paper aims to illustrate the importance of introducing the integration manager (i.e., an executive position used to channel the acquiring firm’s course of action and strengthen the success of a post-acquisition integration process) within the acquiring firm’s board of directors.Design/methodology/approach – This is a theoretical paper that introduces the integration manager within the board of privately held firms going internationally via acquisitions and serving as an “out-insider” director able to balance the conflicting demands of the previously separated entities during their integration process. The authors present an explanatory case study that empirically contributes to board of directors’ design for internationalization.Findings - We posit that the integration manager serves as an “out-insider” director of the board for privately held firms, possessed by large-block shareholders, going internationally via acquisitions, providing the necessary expertise and knowledge of the target firm’s products and industry.Originality/value – The provided study aims to demonstrate that international acquisitions, even though apparently less risky than greenfield investments, may require additional neutral information flow – both within the due diligence process and the post-acquisition integration – that only outsiders possess. Such outsider has been individuated in the integration manager whose crucial role focuses on smoothing the pre- and post-acquisition integration processes.Keywords Board of directors, acquisitions, integration manager, corporate governance.Paper type Research paper
2017
Board of directors; Acquisitions; Integration manager; Corporate governance
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.11769/18207
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