Speed of ICT integration strategies in absorptions: Insights from a qualitative study

SummaryA quick replacement of the Information and Communication Technology Systems (ICT) of the target company with the bidder’s ICT is expected in absorptions, as the synergies stemming from these deals lie in the rapid integration of the acquired firm within the organizational structure of the bidder. However, the evidence from the literature shows that this is not always the case. In order to analyze and identify the different ICT integration strategies, we conduct a multiple case study featuring five Spanish companies with ample experience in absorptions. Based on this evidence, we construct a typology of ICT integration strategies based on the speed of integration, which is understood as the extent to which the ICT system integration meets or exceeds the minimum technology transfer time due to other organizational requirements.

► Rapid unification of ICT among different firms is not always the best option.
► Internal relatedness of ICT systems affects the speed of integration.
► Sizes of the companies involved affect the speed of integration.
► In absorptions, the best integration strategies are takeovers and standardizations.
► Align integration speed and strategic/cultural change related to ICT investments.