Post-acquisition changes beyond the dyad: Power at the net level in cross-border acquisitions

Abstract

A common feature of the literature on post-acquisition changes is its dyadic feature, i.e. the emphasis is placed on the actors directly involved in the acquisition, often represented by the acquiree and the acquirer. Accordingly, actors outside the dyad, such as suppliers and buyers, are usually disregarded. There is, however, a relevant exception in this literature. Recently, some Nordic authors have claimed that if actors other than the acquiree and the acquirer are not taken into account, the existing literature may only present a partial view of changes following acquisitions. Consequently, they have suggested that changes following this type of operation can be analysed fruitfully at the network level. Our article adds to the efforts of these scholars to understand post-acquisition changes at a broader level by bringing to the fore two issues that have received scarce attention in the literature: i) nets rather than the network level appears to be the locus where post-acquisition changes beyond the dyad take place; ii) relational power can be regarded as an independent variable in post-acquisition changes beyond the dyad. These arguments are illustrated by three brief case studies of cross-border acquisitions.