L. Häkkinen (Finland)
Mergers & acquisitions, logistics service industry, general network theory, and case study
New challenges and opportunities in the contemporary business environment have triggered a wave of mergers and acquisitions (M&A) in numerous industries as companies have sought ways to enhance their capabilities. This development has also affected to organizational structure of companies in industries, where maximizing organizational learning and flexibility have become critical organizing imperatives rather than economizing on transaction costs. This paper presents case study findings on several M&A deals completed by a pan European logistics service provider. Results illustrate that general network theory can provide a fruitful basis for examining company growth strategies. Research implications suggest that M&A driven growth may generate a rapid increase in revenues due to e.g. network effects. However, this positive effect is challenging to replicate in the development of profitability.
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