The long-term value of M&A activity that enhances learning organisations

Viewing the automobile industry as being made up of independent learning-organisations may reveal some tie-ups that can generate value not easily revealed by traditional financial metrics. The key question to be answered when considering M&A activity between automakers from this perspective is how the formation of such a relationship (or its dissolution) may affect an automaker's organisational learning (e.g., the development of increasingly higher-performing organisational routines to shorten development lead times, improve a vehicle's overall customer satisfaction, improve the ease with which a vehicle can be assembled). We analyse three case studies to obtain insights into how M&A activity may be used to enhance the learning organisations of automakers. The first two cases, Renault-Nissan and Ford-Mazda, involve very significant but still minority equity stakes between Western and Japanese automakers. The third case, Chrysler-AMC, was a full acquisition involving two US firms.(A)

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  • Authors:
    • HELLER, D A
    • Mercer, G
    • Fujimoto, T
  • Publication Date: 2006


  • English

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  • Accession Number: 01050710
  • Record Type: Publication
  • Source Agency: Transport Research Laboratory
  • Files: ITRD
  • Created Date: Jun 4 2007 11:55PM