An exploration of international acquisition and Joint Venture collaboration as means for closing strategic deficiencies of automotive suppliers: Providing an evidence-based advisory framework for cross-border transactions with US partners

Hagel, Michael W. (2018) An exploration of international acquisition and Joint Venture collaboration as means for closing strategic deficiencies of automotive suppliers: Providing an evidence-based advisory framework for cross-border transactions with US partners. DBA thesis, University of Gloucestershire.

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Abstract

Purpose/objectives: The study considered international Joint Venture projects (‘IJV’) and international acquisitions (for recognition purposes, the term of international Mergers & Acquisitions ‘IM&A’ is used even though mergers are not specifically part of the study) with a focus on automotive suppliers in the passenger car market and regionally on US partners. The objective was to analyse how suppliers in the automotive industry can close their strategic deficiencies through these IJV and IM&A transactions. The regional focus on US partners was chosen, as the USA is a major market for automotive suppliers (volumes/size and innovation-focus). The idea was to identify, categorise, and subsequently analyse decision-making parameters of the engagement in IJV and IM&A. Design/methodology/approach: The research had two main areas: a general literature review and an empirical part with a case study approach. As the research drew on a constructivist perspective, the empirical part of the research was conducted with a qualitative approach. At the centre were three case studies of a major German supplier analysed in depth: one IM&A, one IJV and one ‘hybrid’ transaction. These studies examined good practices, highlights, and challenges through semi-structured interviews. Senior experts in the Business Units and collaboration teams involved in these strategic projects were interviewed. Documentation reviews and the researcher’s own observations flanked these interviews. Findings: Bringing together ideas from the existing literature, and enriching them with insights from projects in the real automotive world, the current study contains valuable considerations about these complex strategic transactions. In order to enhance the deliberate use of these collaborations, the research reflected on the possible alignments of the various parameters and strategic factors. Contributions: The study represents a contribution to the practice and to the academic world, since it is a study to bridge the relevant theory/practice literature with real casestudy- based insights of German-USA inter-firm collaborations in the automotive industry. On that basis, an ‘advisory framework’ was developed to enhance decisionmaking in that area of corporate strategy. It focuses on important factors to consider when engaging in cross-border IJV and IM&A in a specific industry. Research limitations/implications: The research results would need to be further explored in practice, which could be the subject of future research. Limitations from the current study stem from the chosen research design and sample size.

Item Type: Thesis (DBA)
Uncontrolled Keywords: Automotive supplier industry; International joint ventures; International acquisitions; Equity collaboration; Germany; United States of America
Subjects: H Social Sciences > HG Finance > HG4001 Finance management. Business finance
H Social Sciences > HG Finance > HG4501 Investment, capital formation, speculation
Divisions: Schools and Research Institutes > School of Business and Technology
Depositing User: Susan Turner
Date Deposited: 13 Jun 2018 11:57
Last Modified: 13 Jun 2018 11:57
URI: http://eprints.glos.ac.uk/id/eprint/5709

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