Managerial and leadership considerations for the process of integrating small innovation acquisitions at the team level

Anderson, Katelyn Ann (2019-04)

Thesis (MCom)--Stellenbosch University, 2019.

Thesis

ENGLISH SUMMARY : The subject of innovation inspires much inquiry due to its lucrative and strategic applications in industry, its exciting means of continually engaging consumers as well as its potential to create a desirable basis for a modern competitive advantage. The mergers and acquisitions (M&A) literature shows that these transactions are increasingly driven by innovation, which may be undertaken for the purpose of acquiring innovative value offerings, for instance. Scholars submit that commercialisable, innovative value offerings are most effectively created through an innovation execution process undertaken by a skilled innovation team. Among the prescriptions for developing this team is the undertaking of a small innovation acquisition. Yet, M&A are known for their high rate of failure; one common cause is the strategy and implementation of the post-acquisition integration process (PAIP), which is arguably the most problematic stage of the M&A process. Scholars advance that, for successful integration to be achieved, forms of both management and leadership are necessary. As the PAIP is a common cause of failure in M&A, it is likely necessary that this process of integrating the small innovation acquisition at the team level requires attention by the managers and leaders of the team. As it pertained to the team level of post-acquisition integration, the existing research was found lacking. As such, the study had the overarching aim to explore managerial and/or leadership considerations for the process of integrating small innovation acquisitions (with more than one individual) at the team level. A cross-case study was undertaken with three cases selected through purposive sampling; these cases availed five research subjects with managerial and/or leadership responsibilities in their teams to the study, all of whom acquiesced to participate anonymously. These cases are referred to as “Egypt”, “Greece” and “Rome” to protect the identity of the organisations, natural persons and innovations examined within these cases. The reviewing of literature led to devising an in-depth, semi-structured interview guide with which the research subjects were interviewed and probed. The data collected through the audio-recorded interviews was transcribed verbatim and analysed using interpretative phenomenological analysis. This presented eight key thematic findings that were of interest across two or more of the cases studied. The cross-case key thematic findings that emerged from the primary research were: unaltered process approach; relationship-building as integration; innovative teams need complementary skills; weekly meetings manage expectations; founder-only meetings; entrepreneurs want autonomy; team consensus; and technology readiness level. These were translated into recommendations for team level integration managers and leaders with a view to benefit future integrations. The main contribution of this study is in its exploration of an underrepresented area. Thus, it contributed findings regarding managerial and/or leadership considerations for team level integrations of small innovation acquisitions and served to initiate a dialogue about the subject. As M&A often fall prey to failure as a result of unsuccessful PAIPs, this study was undertaken to endeavour to further the collective knowledge of researchers and practitioners undertaking the PAIP, with a focus on integration at the team level. It identified how three cases of small innovation acquisitions, partial or full, can provide a starting point for enlightening other organisations. A failed innovation acquisition may lead to eroding the value of the investment as well as strained relationships with the acquired organisation. To honour the innovation that consumers will purchase and the individuals who made that value offering possible, small innovation acquisitions should be given more attention in future studies and practice.

AFRIKAANSE OPSOMMING : Die onderwerp van innovasie trek aandag as gevolg van die winsgewende en strategiese toepassings in die bedryf, die opwindende manier om voortdurend verbruikers te betrek, asook die potensiaal om 'n wenslike basis vir 'n moderne mededingende voordeel te skep. Die literatuur van samesmeltings en verkrygings toon dat hierdie transaksies toenemend deur innovasie gedryf word; dit kan byvoorbeeld onderneem word om innoverende waardeaanbiedings te verkry. Geleerdes beweer dat kommersiële, innoverende waardeaanbiedings mees effektiewelik geskep word deur 'n innovasie-uitvoeringsproses wat deur 'n vaardige innoveringspan onderneem word. Een van die voorskrifte vir die ontwikkeling van hierdie span is die onderneming van 'n klein innovasie-verkryging. Tóg is samesmeltings en verkrygings bekend vir hul hoë persentasie van mislukking; een algemene oorsaak is die strategie en implementering van die ná-verkryging integrasie-proses, wat waarskynlik die mees problematiese stadium van die samesmeltings-en-verkrygings-proses is. Geleerdes stel voor dat, om suksesvolle integrasie te behaal, vorms van bestuur en leierskap nodig is. Aangesien die ná-verkryging integrasie-proses 'n algemene oorsaak van mislukking in samesmeltings en verkrygings is, is dit waarskynlik nodig dat hierdie proses van integrasie van die klein innovasieverkryging op spanvlak die aandag van die bestuurders en leiers van die span vereis. Die bestaande navorsing, met betrekking tot die ná-verkryging integrasie op spanvlak, is beperk. Dus het die studie die oorkoepelende doel gehad om bestuurs- en/of leierskapsoorwegings te ondersoek vir die proses om klein innovasie-verkrygings (met meer as een individu) op spanvlak te integreer. Om dit te ondersoek, is 'n kruisstudie onderneem met drie gevalle wat deur doelgerigte steekproefneming gekies is en vyf navorsingsvrywilligers met bestuurs- en/of leierskapsverantwoordelikhede. Almal van hulle het verneem om anoniem aan die studie deel te neem. Hierdie word na verwys as die Egipte, Griekeland en Rome gevalle om die identiteit van die organisasies, natuurlike persone en innovasies binne hierdie gevalle te beskerm. Die hersiening van literatuur het gelei tot die samestelling van die in-diepte, semi-gestruktureerde onderhoudsgids waarmee die navorsingsvakke onderhoude gevoer en ondersoek was. Die data wat deur die klankopnames van onderhoude versamel was, was woordeliks op skrif gestel en geanaliseer met behulp van interpretatiewe fenomenologiese analise. Dit het agt sleutel-tematiese bevindinge aangedui wat oor twee of meer van die gevalle van belang was. Die tematiese sleutel-tematiese bevindings wat uit die primêre navorsing na vore gekom het, was: onveranderde proses benadering; verhoudingsbou as integrasie; innoverende spanne benodig komplementerende vaardighede; weeklikse vergaderings bestuur verwagtinge; stigter-alleenlike vergaderings; entrepreneurs wil outonomie hê; span konsensus; en Tegnologie Gereedheidsvlak. Hierdie is omskryf in aanbevelings vir spanvlak-integrasiebestuurders en leiers met die oog daarop om toekomstige integrasies te bevoordeel. Die belangrikste bydrae van hierdie studie is in die verkenning van 'n onderverteenwoordigde area. Die doel van die studie was om bevindinge oor bestuurs- en/of leierskapsoorwegings vir spanvlakintegrasies by te dra en om 'n sinvolle dialoog daaroor aan te moedig. Aangesien samesmeltings en verkrygings dikwels as gevolg van onsuksesvolle ná-verkryging integrasie-prosesse misluk, is hierdie studie onderneem om die gesamentlike kennis van navorsers en praktisyne wat die ná-verkryging integrasie proses onderneem te bevorder, met die klem op integrasie op spanvlak. Dit het aangedui hoe drie gevalle van klein innovasie-verkrygings, gedeeltelik of volledig, 'n beginpunt van insig kan wees vir ander organisasies. 'n Mislukte innovasie verkryging kan lei tot die erosie van die waarde van die belegging sowel as gespanne verhoudings met die verkrygde organisasie. Om die innovasie wat verbruikers koop en die individue wat daardie waardeaanbieding moontlik gemaak het te eerbiedig, moet klein innovasie-verkrygings meer aandag geniet in toekomstige studies asook in praktyk.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/105971
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