A Typology of Cross-Business Synergies and a Mid-range Theory of Continuous Growth Synergy Realization
E-Book, Englisch, 389 Seiten, eBook
ISBN: 978-3-8349-9687-9
Verlag: Betriebswirtschaftlicher Verlag Gabler
Format: PDF
Kopierschutz: 1 - PDF Watermark
Dr. Sebastian Knoll ist wissenschaftlicher Mitarbeiter von Prof. Dr. Günter Müller-Stewens und Projektleiter am Institut für Betriebswirtschaft der Universität St. Gallen.
Zielgruppe
Research
Weitere Infos & Material
1;Foreword;6
2;Acknowledgements;8
3;Table of Contents (overview);10
4;Table of Contents (detailed);11
5;List of Figures;17
6;List of Abbreviations;21
7;Abstract;23
8;Introduction;24
8.1;Research objectives and guiding questions;24
8.2;Key results and contribution;29
8.3;Outline of dissertation;33
9;PART I: INTRODUCING AND CLASSIFYING CROSSBUSINESS SYNERGIES;36
9.1;Concept and Characteristics of Cross-business Synergies;37
9.1.1;The concept of synergy;37
9.1.2;Definition of cross-business synergies;38
9.1.3;The impact of cross-business synergies on corporate advantage;41
9.1.4;The existence of cross-business synergies;45
9.1.5;Summary and discussion;46
9.2;Types of Cross-business Synergies;47
9.2.1;Operative synergies;49
9.2.2;Market power synergies;57
9.2.3;Financial synergies;61
9.2.4;Corporate management synergies;70
9.3;Summary and Discussion of Part I;123
9.3.1;Summary;123
9.3.2;Implications for theory and managerial practice;126
10;PART II: REALIZING GROWTH SYNERGIES;130
10.1;Literature Review: Operative Synergies;132
10.1.1;Corporate Strategy Research;133
10.1.2;Corporate Design Research;139
10.1.3;Corporate Process Research;149
10.1.4;Summary and Discussion;155
10.2;Empirical Approach;159
10.2.1;Methodology and Research Approach;159
10.2.2;Research Design;165
10.2.3;Quality of research: Validity and reliability;178
10.2.4;Summary and Discussion;182
10.3;Exploratory Work: Strategies for Growth Synergies;183
10.3.1;Joint market penetration;184
10.3.2;Joint offering development;190
10.3.3;Joint market development;195
10.3.4;Joint diversification;197
10.3.5;Corporate Growth Path: Timing of growth synergy strategies;199
10.3.6;Summary and Discussion;201
10.4;Case Study: The continuous realization of growth synergies;203
10.4.1;Company Background;203
10.4.2;‘One ElectroCorp’ – Alignment for Growth Synergies;208
10.4.3;Strategic Concept for the continuous realization of growth synergies;213
10.4.4;Corporate Design for the continuous realization of growth synergies;225
10.4.5;Summary;253
10.5;Results: Key success factors for the continuous realization of growth synergies;254
10.5.1;Strategic Concept: Selective focus;255
10.5.2;Organization Design: Decentralized Collaboration;278
10.5.3;Corporate Management: Guided and balanced self-interest;307
10.6;Summary and Discussion of Part II;322
10.6.1;Key findings;322
10.6.2;Implications for theory;331
10.6.3;Implications for managerial practice;349
10.6.4;Limitations;353
10.6.5;Directions for future research;354
11;PART III: CONCLUSION;357
12;Appendices;359
13;References;379
Introducing and Classifying Cross-Business Synergies.- Concept and Characteristics of Cross-business Synergies.- Types of Cross-business Synergies.- Summary and Discussion of Part I.- Realizing Growth Synergies.- Literature Review: Operative Synergies.- Empirical Approach.- Exploratory Work: Strategies for Growth Synergies.- Case Study: The continuous realization of growth synergies.- Results: Key success factors for the continuous realization of growth synergies.- Summary and Discussion of Part II.
3 Types of Cross-business Synergies (p. 24-25)
In the previous chapter, we provided a definition of cross-business synergies and identified conditions under which cross-business synergies contribute to corporate advantage. The purpose and contribution of this chapter is to derive various sources of crossbusiness synergies from the literature and categorize them into specific synergy types. This chapter seeks to answer our first research question and aims to generate further insights into the nature of the corporate effect. Furthermore, this chapter establishes a dedicated research perspective on cross-business synergies, which sets the stage for our in-depth investigation of growth synergies in the second part of this study.
Several streams of literature ranging from industrial economics to financial theory and strategic management refer to the concept of cross-business synergy. However, theoretically grounded typologies of cross-business synergies are largely absent from the literature. Most typologies are arbitrary. For instance, Ansoff (1965) differentiates sales synergy, operating synergy, investment synergy, and managerial synergy as types of cross-business synergies without providing proper definitions, classification criteria, or theoretical grounding.
Similarly, in a more recent typology, Goold and Campbell (2000) classify synergies randomly without a clear underlying logic into shared knowhow, shared tangible resources, pooled negotiation power, coordinated strategies, vertical integration, and combined new business generation.14 By providing a typology that clearly delineates different sources of cross-business synergies based on the latest research, we aim to address this shortcoming.
Our synergy typology is grounded in a resource-based perspective of the firm. Following Barney (1991), we employ a broad notion of resources, which we define as "(…) all assets, capabilities, organizational processes, firm attributes, information, knowledge, etc., controlled by a firm that enable the firm to conceive of and implement strategies that improve its efficiency and effectiveness" (Barney, 1991:101).
We posit that leveraging resources across businesses creates cross-business synergy and delineate different types of cross-business synergies based on four classes of resources (see exhibit 3-1 on the next page): operative resources, market power resources, financial resources and corporate management resources. Operative resources refer to the tangible and intangible business-level resources necessary for ongoing operations.
Market power resources entail all sources of the firm to reduce competition and increase prices. Financial resources include the firm’s risk capacity and all means of financing. Finally, corporate management resources refer to managerial capabilities at the corporate level. Based on these resources, we conceptualize four types of cross-business synergies: Operative synergies focus on advantages of MBFs from leveraging operative resources across their related businesses that increase efficiency and profitable growth.
Market power synergies center on advantages of MBFs from conglomerate power that reduce business-level competition. Financial synergies concentrate on financial advantages of MBFs that reduce capital costs and increase the firm’s financial flexibility. In addition to these three types, which we derive directly from the literature, we propose a fourth type of cross-business synergies, corporate management synergies. Corporate management synergies focus on advantages of MBFs from leveraging corporate management resources that improve the profitability of the individual businesses of the firm.
