Decision-making in conditions of constant change - a case within the automotive industry

• PurposeTo analyse how differences in decision-making affected the integration of the R&D functions after Ford's acquisition of Volvo Cars. Design/methodology/approachThe analysis is carried out in two steps. Step one analyses which type of approach Ford employed to integrate Volvo into the company. Step two analyses how R&D decisions are made by both firms and the consequences of found differences in decision-making on the success of the integration process.FindingsFord's approach to the integration of Volvo Cars follows a symbiosis approach, combining a high need of both organizational autonomy and strategic interdependence. A symbiosis acquisition integration approach demands that the decision-making processes are given special attention. The acquired firm's specific decision-making processes need to remain intact in order to preserve its embedded unique R&D value creation capabilities. The decision-making processes should be kept separate in order to prevent disruption. Originality/valueThe paper relates theories about firm acquisition processes and aspects of organization theory to establish a bridge between these research areas.

Subject headings

TEKNIK OCH TEKNOLOGIER  -- Maskinteknik -- Annan maskinteknik (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Mechanical Engineering -- Other Mechanical Engineering (hsv//eng)

Keyword

Automotive industry

Acquisitions and mergers

Change management

Industrial organisation, administration and economics

Industriell organisation, administration och ekonomi

Publication and Content Type

ref (subject category)

art (subject category)