David B. Jemison

Acquisition Decision-Making Processes: The Central Role of Risk

This paper builds upon the work of organizational and strategic management scholars who have conceptualized acquisitions as decisionmaking processes, We suggest that behavioral concepts of risk, specifytally decision-maker risk perceptions andpropensities, are key to understanding the process by which acquisition candidates are selected, the characteristics of pre-acquisition evaluation and negotiations, and approaches to post-acquisition integration. By drawing upon past work concem~ng the efsects of these risk-related variables in other decisioneking contexts, we develop propositions that conceptualize their impact on acquisition decision processes. Incorporation of risk as a key variable in process theories of acquisitions provides a stronger theoretical grounding for these theories, and suggests some important practical implications for managers. Since the mid-1980’s, scholarly attention has increasingly focused on the process by which acquisitions are planned, negotiated, and integrated. While this work has varied in terms of its specific focus, a unifying thread can be seen in the conceptualization of acquisitions as strategic decision processes. In this paper, we attempt to increase our ~derst~ding of why acquisition decision processes unfold as they do, by theorizing about risk as a key variable that has been omitted from most existing work on the acquisition decision process. Finance and strategic management scholars have conducted most of the prior work that has addressed risk in relation to acquisitions. The central focus in most of these empirical studies has been on the risk/return relationship in which risk, operationalized as variation in post-acquisition performance, has been linked to acquisition type (i.e., related versus unrelated). This literature has relied almost exclusively upon ex post meusureS of risk (e.g., Montgomery & Singh, 1984).

Corporate governance in mutual insurance companies

Abstract The key corporate governance issues facing mutual insurance company managements are examined. Results of a comprehensive survey of the state of corporate governance in mutual property-liability insurance companies are presented. Recommendations for changes in governance practices by mutual companies are presented and their implications are discussed.

Acquisition Integration: Creating the Atmosphere for Value Creation

The integration process is the key to making acquisitions work. Value creation can occur only after the two firms come together and begin to work toward the acquisition’s purpose. Moreover, the postacquisition management task is extremely complex for several reasons. First, integration must be both detail-oriented and subtle. Integration involves interactions between the firms that directly affect capability transfer, and also, interactions which have an indirect impact and are directed at the general integration atmosphere and context.

Analyzing Corporate Culture in Its Strategic Context

The topic of corporate culture has been receiving a good deal of attention recently. Academics and practitioners alike have embraced this theme in efforts to explain and perpetuate effective management practices (Peters and Waterman, 1982; Deal and Kennedy, 1982; Pascale and Athos, 1981; Ouchi, 1981; Schwartz and Davis, 1981). Although many authors have recognized and attempted to study the impact of culture on organizational behavior and the use of culture as a strategic management tool, methods by which a company’s current culture can be analyzed and assessed with respect to any particular strategy are relatively few. This paper describes a method by which the impact of a corporate culture can be identified in light of the firm’s strategic situation. The method is a technique that was developed while working with a division of a multinational firm during a strategy development program. The paper will focus on the interactive nature of strategic management and corporate culture and a process by which managers can better understand the importance of this relationship in the context of their

Industry Restructuring, Acquisitions, and the Value Creation Process

Irrespective of the public attention received by financial transactions, hostile takeovers and. mega-mergers, most acquisition activity is essentially strategic, and involves the pursuit of corporate renewal. Such renewal can be derived from augmenting or renewing the capabilities that underlie a firm’s competitive position in an existing business domain (domain strengthening); by leveraging the firm’s existing capabilities into new business domains (domain extension), or by entering new business domains which bring into the firm texposure new capabilities (domain exploration).

ABSTRACTS OF PAPERS PRESENTED BUT NOT PUBLISHED.

This article presents several abstracts related to business and commerce. Some of the articles featured discuss topics such as; the business strategies for supermarkets, the benefits of industrial diversification and an examination of the factors that influence group decision making processes for physicians.