טכניון מכון טכנולוגי לישראל
הטכניון מכון טכנולוגי לישראל - בית הספר ללימודי מוסמכים  
M.Sc Thesis
M.Sc StudentErez Noa
SubjectMind the Gap: Preventing Crisis in International Structural
Co-Operations - a System Aapproach to Ggap
Identification
DepartmentDepartment of Industrial Engineering and Management
Supervisors Professor Emeritus Miriam Erez
Professor Emeritus Shlomo Maital


Abstract

The globalization of markets is bringing more companies to choose international joint ventures (IJVs) and Mergers and Acquisitions (IM&As) as their generic growth strategies. Yet the majority (50%-80%) of these structural co-operations do not achieve their objectives.

This research focused on the non-financial factors of IM&As involving Israeli companies, using case study methodology. 3 Israeli companies acquired (in different degrees) by a large American based global company were studied. Thirty-one managers participated in the study.

The data from the interviews and subsequent case studies written of the transactions underwent content analysis in which 7 key success factors (KSFs) were identified: Business environment, Deal Motives, Deal Strategy, Proceeding of the Deal, Leadership, Organizational Culture and National Culture. Each case underwent gap analysis for each of the 7 KSFs. Potential clashes and their implications were identified and discussed.

The gap analysis was found to be a necessary but not sufficient condition for the success of the deal. Another necessary condition was the integration process that dealt with the identified gaps.

The integration factor was identified as an intervening factor that enhanced the potential success of a transaction if implemented correctly. A system approach was adopted in viewing and modeling the findings.

The analysis demonstrated that the highest frequency of gaps and the lowest level of integration were associated with the case that did not end up in a full acquisition, but rather, the partnership was terminated after 1 year. The two other cases with a lower frequency of gaps, and a high level of integration ended up with successful acquisitions.