The SME perspective on cross-border mergers

What is it about?

The paper analyses a longitudinal case study of a cross-border merger of the IT SME. It is shown that from the perspective of the SME, its own perceived important network position resulting from the resources it possesses, the ability to decide how they are utilised, as well as relationships strongly supported by trust and a good atmosphere are key motives and success factors for the merger.

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Why is it important?

By adapting the IMP research perspective and the concept of network position to the analysis of mergers the additional aspects of the merger process which are usually not raised in relevant traditional M&A literature are revealed. The presented longitudinal case study of the IT company shows that a merger is (1) not just the sourcing of resources, but also interdependencies and taking joint decisions with regard to them; (2) not just economic aspects, but also social aspects of relationships (trust and atmosphere); (3) not just the sharing of resources between merged entities, but also the constant influence of other relationships and interactions on these resources.