Aufsatz in einer Fachzeitschrift
How IT carve-out project complexity influences divestor performance in M&As
Details zur Publikation
Autor(inn)en: | Yetton, P.; Henningsson, S.; Böhm, M.; Leimeister, J.; Krcmar, H. |
Publikationsjahr: | 2022 |
Zeitschrift: | European Journal of Information Systems |
Seitenbereich: | 962-988 |
Abkürzung der Fachzeitschrift: | EJIS |
Jahrgang/Band : | 32 |
Heftnummer: | 6 |
ISSN: | 0960-085X |
eISSN: | 1476-9344 |
URN / URL: |
Zusammenfassung, Abstract
| IT carve-out projects are complex and cost-intensive components of M&A transactions. Existing research sheds little light on the determinants of IT carve-out project complexity and/or its effects on divestor performance. Instead, research has focused on the post-acquisition IT integration project and acquirer performance. This paper presents the first divestor-centric model of IT transactions from the divestor to the acquirer when a Business Unit in a Multi-Business Organization (MBO) is carved out and integrated into another MBO. The model explains how divestor business and IT alignment pre-conditions contribute to increased IT carve-out project complexity. Such complexity increases IT carve-out project time to physical IT separation and creates IT stranded assets, which decrease post-divestment business, IT alignment and divestor performance. The current recommended strategy of adopting transitional service agreements (TSAs) to handle IT carve-out complexity is compared with two new proactive strategies derived from the model. TSA-based strategies restrict the divestor from both decommissioning IT stranded assets and reconfiguring its IT assets to support its new post-divestment business strategy. The two new strategies address IT carve-out complexity without incurring the negative effects from adopting TSAs |
