The long-term value of M&A activity that enhances learning organisations

Daniel Arturo Heller, Glenn Mercer and Takahiro Fujimoto

International Journal of Automotive Technology and Management, 2006, vol. 6, issue 2, 157-176

Abstract: Viewing the automobile industry as being made up of independent learning-organisations may reveal some tie-ups that can generate value not easily revealed by traditional financial metrics. The key question to be answered when considering M&A activity between automakers from this perspective is how the formation of such a relationship (or its dissolution) may affect an automaker's organisational learning (e.g., the development of increasingly higher-performing organisational routines to shorten development lead times, improve a vehicle's overall customer satisfaction, improve the ease with which a vehicle can be assembled). We analyse three case studies to obtain insights into how M&A activity may be used to enhance the learning organisations of automakers. The first two cases, Renault-Nissan and Ford-Mazda, involve very significant but still minority equity stakes between Western and Japanese automakers. The third case, Chrysler-AMC, was a full acquisition involving two US firms.

Keywords: organisational learning; equity alliance; mergers; acquisitions; automobile industry; inter-firm cooperation; R&D centre; automotive assemblers; product architecture; organisational routines; organisational capabilities; learning organisations; capability-building competition; research and development; customer satisfaction; lead time reduction. (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=9525 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijatma:v:6:y:2006:i:2:p:157-176

Access Statistics for this article

More articles in International Journal of Automotive Technology and Management from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().