Raffaele Fiorentino

A Synergy Measurement Model to Support the Pre-Deal Decision Making in Mergers and Acquisitions

Purpose – The purpose of this paper is to develop an effective synergy measurement model to support the decision-making process in mergers and acquisitions (M&A). Design/methodology/approach – Relevant literature is reviewed and critically assessed. An interpretive methodology is used to analyse empirical data from a questionnaire survey and interviews of M&A experts. A framework is provided with the objective to support the process of synergy measurement and the success of pre-deal planning. Findings – The authors find several mismatches in synergy measurement practices. The strategic factors, which are considered very relevant to generating reliable forecasts, are surprisingly not adequately quantified. On the contrary, a synergy measurement model may integrate the assessment of these factors: the type of synergy, the size of synergy, the timing of synergy and the likelihood of achievement. Practical implications – The paper offers interesting implications for firms, advisors and consultants, pointing o...

Synergy Management Pitfalls in Mergers and Acquisitions

Purpose – The purpose of this paper is to advance a conceptual comprehensive framework to analyze synergy management pitfalls in mergers and acquisitions (M & As). The framework highlights the main dimensions of synergy management, the most relevant synergy pitfalls and the ways to overcome them. Design/methodology/approach – A greater recognition of synergy management literature in M & As is developed. A framework is provided integrating the compatible elements of previous broad areas of research and the main findings of studies on several topics related to synergy. Findings – Prior literature has suggested that synergy is an important motivation of M & As, has tended to be overestimated and has been difficult to achieve. Specifically, there are three relevant synergy pitfalls: the “mirage,” a tendency to overestimate synergy potential, the “gravity hill,” the underestimation of the difficulties in synergy realization and “amnesia,” a dangerous lack of attention to the realization of synergy. An effectiv...

An Integrated Framework to Support the Process of Green Management Adoption

– The purpose of this paper is to develop an integrated framework that aims to support the commitment of managers to green management and environmental strategies. , – Relevant literature is reviewed and critically assessed. A framework is provided with the objective of supporting the process of green management adoption and the success of environmental strategies. , – Green management issues have the potential to inform a wide range of business processes. The proposed framework clarifies that a multi-criteria approach (including the activity sector, drivers of green management adoption, strategic horizon and level of strategy) is needed to analyze the many critical actions that firms can develop to embrace green management. This model allows firms to be well equipped to address environmental challenges in a strategic manner. , – This paper offers implications of interest to managers, pointing out that many actions may result in the adoption of socially responsible environmental policies. Specifically, the paper suggests strategies and practices that contribute to green management while simultaneously driving environmental, financial and competitive results. , – This article responds to the needs of managers who are engaged in environmental social responsibility for a framework to assist in identifying and exploiting the most effective ways of coping with the adoption of green management.

Performance Measurement in Strategic Changes

Although strategic changes and management control systems are relevant, there is the need for an evolution in the tools of performance measurement, analysis and control to understand the ability of the firms, at first, to face environmental variability and, then, to achieve objectives through the strategic change management. This study was dedicated to the issue of what measures are relevant during the strategic change process. It also proposes a multidimensional control system for strategic changes. The framework is based on: the literature review and analysis about strategic change, change management and performance measurement; a two-stage empirical research. Overall, the proposed control system can help firms in managing strategic changes.

Operations strategy: a firm boundary-based perspective

The purpose of this paper is to advance a firm boundary perspective of operations strategy linking strategic management and business process management.,Relevant operations strategy, business process management and boundary perspective literature is reviewed and critically assessed in order to advance a firm boundary-based approach to operations strategy. Within this perspective, a multi-disciplinary and cross-functional framework is provided with the objective of supporting the process of operations strategy formulation and implementation.,The boundary perspective has the potential to inform a wide range of operations strategies. Strategic management of operations should be increasingly based on boundary operations. The proposed framework clarifies that the adoption of a spanning boundary perspective should improve the operations strategy process and content.,This paper offers implications of interest to managers, noting that the adoption of a new perspective in operations strategy should contribute to innovation in operations strategy development and implementation. Specifically, the framework suggests models and tools useful to support the spanning boundary perspective.,This paper allows operations and process management scholars to focus on key phenomena, such as boundary management. At the same time, the framework responds to the needs of managers who are engaged in operations management for a new perspective that can assist in the strategic management of operations.

M&A Success and Failure: The Role of Synergy Management

This chapter introduces the role of synergy management in mergers and acquisitions (M&As). M&As have increasing attention in the external growth strategies of firms. Synergy plays a key role in M&As, first, in the decision making process and, then, in the performance evaluation. Prior studies have paradoxically regarded synergy. The “synergy hypothesis” stream considers synergy as the main motive of M&As. In contrast, the “synergy inflation” stream argues that synergy is the main failure’s reason of M&A. Overall, prior research shows that synergy is an important motivation of M&As, has tended to be overestimated and has been difficult to achieve. Accordingly, we argue that synergy is not a “myth” and could improve the value of combined firms if managers and executive had able to develop an effective management avoiding hidden pitfalls.

Strategie di sostenibilità: dalle motivazioni ai sistemi di misurazione della performance

The paper aims to examine the main changes that performance measurement systems of firms have to face after the adoption of sustainability strategies. The relationship between sustainability strategies and performance measurement systems is analysed along three main dimensions: the reasons that lead to the implementation of sustainability strategies; the changes that these strategies produce within the performance measurement systems; the feedback effects that the revised performance measurement systems determine on the sustainability strategies. We adopted a qualitative research methodology analysing a single case study: ASIA Napoli S.p.A. The case study and the results have been achieved through a theoretical framework built in the first step of the research. The case study allowed to examine the role of legitimacy and reputation when a company chooses to implement sustainability strategies, and confirmed, overall, that the decision to integrate sustainability into business strategy produces changes in performance measurement systems. Our findings showed that the implementation of sustainability strategies produce some changes in the performance measurement systems with regard to the processes and the tools for information and data collection. However, tools for information processing and analysing for decision-making support are less developed. The results also suggested that the measurement of social performance represents an incentive to revise sustainability strategies.

The Strategic Intelligence implications for Information Systems

In current economic contexts, one of the most important drivers of firm success is the ability of information systems to answer the call for new relevant data. This request for data is increasingly related to the likelihood of supporting the strategic decision-making process. Consequently, data collection and data analysis processes are evolving from the traditional Enterprise Resource Planning systems to innovative Strategic Intelligence. Despite the growing attention on Intelligence, there is a lack of studies analysing the many critical perspectives and data that firms can consider to embrace Intelligence in strategic management. The literature, from one perspective, does not clearly define the boundaries of the broad concept of Strategic Intelligence, and, from another perspective, does not provide the needed support to the information selection process for decision-making. Accordingly, the aim of this paper is to develop an integrated framework that aims to support the commitment of managers to Strategic Intelligence by analysing the implications for information systems. Using a structured literature review, we develop a conceptual comprehensive framework based on five main dimensions: competitive intelligence, market intelligence, resources intelligence, finance intelligence and innovation intelligence. The comprehensive framework provides insights and guidelines for collecting, analysing and explaining data for Strategic Intelligence. Specifically, the paper suggests sources and methods to translate data into effective knowledge for strategic decision-making.

The Current Environmental Strategy Reporting Model: What can be Learned from Corporate Reports?

This paper explores the information on environmental strategy. Our interest is to understand whether corporate reports are useful to assess a firm’s environmental performance. We developed an empirical investigation of annual reports and social reports of large public firms. Using content analysis, our findings show major differences among companies in sensitive, manufacturing/service and financial sectors in terms of: integration of environmental issues into corporate reporting model; disclosure of environmental information. We offer some relevant insights on the overlooked relation between environmental disclosure and environmental performance and on the predominant use of environmental qualitative and/or non financial measures. The study shows that there is: a lack of consideration paid to the relationship between environmental strategies and environmental performance; high variability and limited standardization in environmental practices. Consequently the comparability of environmental performance is very low. Furthermore, integrating theoretical and empirical findings, we suggest some implications to improve environmental disclosure practices.

Inside Synergy Assessment: Towards the Real Value of M&As

This chapter develops an effective synergy assessment model to support the process of synergy valuation and the success of pre-deal planning. The effectiveness of the synergy value depends from the valuation models, the valuation path and the assessment process. We highlight that the synergy assessment process and the effective use of synergy valuation models are critical points to cut the failure rate of mergers and acquisitions. We analyze the most relevant valuation models and the strategic factors affecting synergy: the type of synergy, the size of synergy, the timing of synergy and the likelihood of achievement. The effective use of synergy assessment models is critical to improve the success of mergers and acquisitions due-diligence.