Purpose
– The purpose of this paper is to illustrate the forms of change that horizontal and vertical mergers and acquisitions (M
&
As) may evoke in acquired firms’ customer networks. M
&
As have increasingly become a dominant mechanistic growth path,pursued relentlessly by companies with varying attributes. However,acquiring a firm does not automatically imply that the market position of the acquired firm and its networks can be taken over,as conventionally held.
Design/methodology/approach
– The approach takes the form of two qualitative interview-based case illustrations.
Findings
– The illustrative empirical cases within the context of this study suggest that customer network changes may be rapid and/or radical,and gradual,depending on the specific acquisition type,context and managerial actions following the acquisition. Moreover,the visual simplicity of the network drawing in the post-acquisition network environment of a vertical acquisition type is not equivalent to lesser complexity of managing within the network. Rather,it shows a greater complexity as the M
&
A induces more direct customer relationships to manage and be managed. The study also shows that connected network changes may cause a revision of a specific industry’s business rules,and the management of these changes is critical for acquisition success.
Research limitations/implications
– While the two illustrative M
&
A cases are deemed practically significant in strategic and social terms within their industry and country settings,further research is required to establish the generalizability of the findings to wider industry and geographical contexts.
Originality/value
– This paper contributes to the discussion on the important role of the business network approach in elaborating the understanding of a strategic management event,particularly M
&
A.
