Information System Integration after Merger and Acquisition in the Banking Industry
Company mergers and acquisitions reached their peak
in the twenty-first century. Mergers and acquisitions have become one
of the competitive strategies for external growth. In general, it is
believed that mergers and acquisitions can create synergies. However,
they require complete information technology system and service
integration, especially in the banking industry. Much of the research
has focused on performance evaluation, shareholder equity allocation,
or even the increase of company market value after the merger and
acquisition, whereas few scholars have focused on information system
integration post merger and acquisition. This study indicates the role
of information systems after a merger and acquisition, explaining the
benefits of information system integration using a merger and
acquisition case in the banking industry as an example. In addition, we
discuss factors that affect the performance of information system
integration, and utilize system dynamics to interpret the relationship
among factors that affect information system integration performance
in the banking industry after a merger and acquisition.
[1] K. Bailey, "Taking a Byte Out of M&A Failure", CMA Management
Hamilton 75(3), pp. 16-19, 2001
[2] Y. Weber, and N. Pliskin, "The Effects of Information Systems
Integration and Organizational Culture on a Firm-s Effectiveness",
Information and Management, Vol. 30, No. 2, pp. 81-90, 1996.
[3] P. McKiernan, and Y. Merali, "Integrating information systems after a
merger", Long Range Planning, Vol. 28, No. 4, pp. 54-62, 1995.
[4] P.C. Haspeslagh, and D.B. Jemmison, "AcquisitionsÔöÇMyths and
Reality", Sloane Management Review, pp.53-58, 1987.
[5] D.L. Bohl, Tying the Corporate Knot, The Effects of Mergers and
Acquisitions, New York: AMA Membership Publications Division, 1989.
[6] R. Rosenberg, Network Trauma: Making Ends Meet When Two Firms
Merge, Data Communications, Vol. 16, No. 8, pp. 102-111, 1987.
[7] J. H. Sheridan, "What path to follow?", Industry Week, Vol. 244, No. 13,
pp. 41-45, 1995.
[8] D. B. Jemison, and S. B. Sitkin, "Acquisitions: the process can be a
problem", Harvard Business Review, pp. 107-116, 1986.
[9] M. Buck-Lew, C. E. Wardle, and N. Pliskin, "Accounting for information
technology in corporate acquisitions", Information & Management, Vol.
22, No. 6, pp. 363-369, 1992.
[10] S. S. Robbins, and A. C. Stylianou, "Post-merger systems integration: the
impact on IS capabilities", Information & Management, Vol. 32, pp.
205-212, 1999.
[11] A. C. Stylianou, C. J. Jeffries, and S. S. Robbins, "Corporate mergers and
the problems of IS integration", Information & Management, Vol. 31,No.
4, pp. 203-213, 1996.
[12] Stephanie Mercurio, "Bringing IT Together: The Challenge of Integrating
Information Systems after a Merger", Bond Buyer. New York,
N.Y.14,.329, Iss. 30725; pp. 16, 1999.
[13] Mary McDonald, Terry A Mors, Ann Phillips., "Management system
integration: Can it be done?" Quality Progress. Milwaukee: 36, Iss. 10;
pp. 67, 2003.
[14] Kasavana, L. Michael, David, Smith. Julie "Creating a Multi-Processor
Environment Through Systems Integration" Cornell Hotel and
Restaurant Administration Quarterly, 1992, Ithaca.33, Iss. 4; pg. 57, 6
pgs.
[15] W. E. Souder, and R. K. Moenaert, "Integrating Marketing and R&D
Project Personnel within Innovation Projects: An Information Uncertainty
Model", Journal of Management Studies, 29(4), pp.485-512, 1992.
[16] I. Thomas, and B. Neimeh, "Definition of Tool Integration for
Environment," IEEE Software, pp. 29-35, March 1992.
[17] S. T. Zailyk, "Integration Island of Automation: The Factory Floor
Network," Journal of Information System Management, pp. 68-72,
Summer 1989.
[18] Jain, Arun, Smart Legacy Modernization, Polaris Software Lab Limited,
2005.
[19] L. Loverde, Technology Driven Deals in Mergers and Acquisitions: How
Are They Different?, The Corporate Growth Report, 1990.
[20] R. V. Bradley, J. L. Pridmore, and T. A. Byrd, "Information Systems
Success in the Context of Different Corporate Cultural Types: An
Empirical Investigation", Journal of Management Information Systems,
Vol. 33, No. 2, pp. 267-294, 2006.
[21] Lin, Sing-Ru, The Information Technology (IT) Integration of Bank
Merger: An Exploratory Case Study, MBA Thesis, National Central
University, 2006.
[22] Klausner and White, eds., Structural Change in Banking, NYU Salomen
Center, Leonard N. Stern School of Business, 1993.
[23] J. W. Forrester, Industrial Dynamics, The MIT Press (Wright-Allen Series
in SD), 1961.
[24] W. Zheng, B. Yang, G.N. McLean, Linking organizational culture,
structure, strategy, and organizational effectiveness: Mediating role of
knowledge management, Journal of Business Research, Vol. 63, Iss. 7,
July 2010, pp. 763-771.
[25] Paina-Racolta, Nicoleta; The Interference Between the Organizational
Culture and Organizational Structure, Studia Universitatis Babes-Bolyai -
European Studies (1/2001) 113-122.
[26] John W. O'Neill, Laura L. Beauvais, Richard W. Scholl The use of
organizational culture and structure to guide strategic behavior: An
information processing perspective, the Journal of Behavioral and
Applied Management - Winter/Spring 2001 - Vol. 2(2) pp. 131-150.
[27] Kemeny, M. Elizabeth, Staff Development of Direct Care Workers in
Pennsylvania: The Relationship between Organizational Structure and
Culture and Best-Practices in Training, 8-Jun. 2010,
http://hdl.handle.net/2069/247
[1] K. Bailey, "Taking a Byte Out of M&A Failure", CMA Management
Hamilton 75(3), pp. 16-19, 2001
[2] Y. Weber, and N. Pliskin, "The Effects of Information Systems
Integration and Organizational Culture on a Firm-s Effectiveness",
Information and Management, Vol. 30, No. 2, pp. 81-90, 1996.
[3] P. McKiernan, and Y. Merali, "Integrating information systems after a
merger", Long Range Planning, Vol. 28, No. 4, pp. 54-62, 1995.
[4] P.C. Haspeslagh, and D.B. Jemmison, "AcquisitionsÔöÇMyths and
Reality", Sloane Management Review, pp.53-58, 1987.
[5] D.L. Bohl, Tying the Corporate Knot, The Effects of Mergers and
Acquisitions, New York: AMA Membership Publications Division, 1989.
[6] R. Rosenberg, Network Trauma: Making Ends Meet When Two Firms
Merge, Data Communications, Vol. 16, No. 8, pp. 102-111, 1987.
[7] J. H. Sheridan, "What path to follow?", Industry Week, Vol. 244, No. 13,
pp. 41-45, 1995.
[8] D. B. Jemison, and S. B. Sitkin, "Acquisitions: the process can be a
problem", Harvard Business Review, pp. 107-116, 1986.
[9] M. Buck-Lew, C. E. Wardle, and N. Pliskin, "Accounting for information
technology in corporate acquisitions", Information & Management, Vol.
22, No. 6, pp. 363-369, 1992.
[10] S. S. Robbins, and A. C. Stylianou, "Post-merger systems integration: the
impact on IS capabilities", Information & Management, Vol. 32, pp.
205-212, 1999.
[11] A. C. Stylianou, C. J. Jeffries, and S. S. Robbins, "Corporate mergers and
the problems of IS integration", Information & Management, Vol. 31,No.
4, pp. 203-213, 1996.
[12] Stephanie Mercurio, "Bringing IT Together: The Challenge of Integrating
Information Systems after a Merger", Bond Buyer. New York,
N.Y.14,.329, Iss. 30725; pp. 16, 1999.
[13] Mary McDonald, Terry A Mors, Ann Phillips., "Management system
integration: Can it be done?" Quality Progress. Milwaukee: 36, Iss. 10;
pp. 67, 2003.
[14] Kasavana, L. Michael, David, Smith. Julie "Creating a Multi-Processor
Environment Through Systems Integration" Cornell Hotel and
Restaurant Administration Quarterly, 1992, Ithaca.33, Iss. 4; pg. 57, 6
pgs.
[15] W. E. Souder, and R. K. Moenaert, "Integrating Marketing and R&D
Project Personnel within Innovation Projects: An Information Uncertainty
Model", Journal of Management Studies, 29(4), pp.485-512, 1992.
[16] I. Thomas, and B. Neimeh, "Definition of Tool Integration for
Environment," IEEE Software, pp. 29-35, March 1992.
[17] S. T. Zailyk, "Integration Island of Automation: The Factory Floor
Network," Journal of Information System Management, pp. 68-72,
Summer 1989.
[18] Jain, Arun, Smart Legacy Modernization, Polaris Software Lab Limited,
2005.
[19] L. Loverde, Technology Driven Deals in Mergers and Acquisitions: How
Are They Different?, The Corporate Growth Report, 1990.
[20] R. V. Bradley, J. L. Pridmore, and T. A. Byrd, "Information Systems
Success in the Context of Different Corporate Cultural Types: An
Empirical Investigation", Journal of Management Information Systems,
Vol. 33, No. 2, pp. 267-294, 2006.
[21] Lin, Sing-Ru, The Information Technology (IT) Integration of Bank
Merger: An Exploratory Case Study, MBA Thesis, National Central
University, 2006.
[22] Klausner and White, eds., Structural Change in Banking, NYU Salomen
Center, Leonard N. Stern School of Business, 1993.
[23] J. W. Forrester, Industrial Dynamics, The MIT Press (Wright-Allen Series
in SD), 1961.
[24] W. Zheng, B. Yang, G.N. McLean, Linking organizational culture,
structure, strategy, and organizational effectiveness: Mediating role of
knowledge management, Journal of Business Research, Vol. 63, Iss. 7,
July 2010, pp. 763-771.
[25] Paina-Racolta, Nicoleta; The Interference Between the Organizational
Culture and Organizational Structure, Studia Universitatis Babes-Bolyai -
European Studies (1/2001) 113-122.
[26] John W. O'Neill, Laura L. Beauvais, Richard W. Scholl The use of
organizational culture and structure to guide strategic behavior: An
information processing perspective, the Journal of Behavioral and
Applied Management - Winter/Spring 2001 - Vol. 2(2) pp. 131-150.
[27] Kemeny, M. Elizabeth, Staff Development of Direct Care Workers in
Pennsylvania: The Relationship between Organizational Structure and
Culture and Best-Practices in Training, 8-Jun. 2010,
http://hdl.handle.net/2069/247
@article{"International Journal of Business, Human and Social Sciences:63364", author = "Shang-Ping Lin and Shi-Hwa Lo and Ho-Li Yang", title = "Information System Integration after Merger and Acquisition in the Banking Industry", abstract = "Company mergers and acquisitions reached their peak
in the twenty-first century. Mergers and acquisitions have become one
of the competitive strategies for external growth. In general, it is
believed that mergers and acquisitions can create synergies. However,
they require complete information technology system and service
integration, especially in the banking industry. Much of the research
has focused on performance evaluation, shareholder equity allocation,
or even the increase of company market value after the merger and
acquisition, whereas few scholars have focused on information system
integration post merger and acquisition. This study indicates the role
of information systems after a merger and acquisition, explaining the
benefits of information system integration using a merger and
acquisition case in the banking industry as an example. In addition, we
discuss factors that affect the performance of information system
integration, and utilize system dynamics to interpret the relationship
among factors that affect information system integration performance
in the banking industry after a merger and acquisition.", keywords = "Merger and Acquisition, Information SystemIntegration, System Dynamics", volume = "4", number = "12", pages = "2287-5", }
