'The-Impact-of-Mergers-&-Acquisitions-on-It-Governance-Structures\r'

'958 The Impact of Mergers & Acquisitions on IT g overnment Structures: A Case Study Pauline O. chin Florida Atlantic University, ground forces George A. Brown Technologies Consultant, Jamaica Qing Hu Florida Atlantic University, USA Chapter 2. 32 ABSTRACT Developing information engine room (IT) governance social systems at heart an organization has always been challenging. This is especially the case in organizations that give up achieved growth with mergers and acquisitions.When the acquired organizations argon geographically located in divergent regions than the boniface enterprise, the pointors affecting this integration and the cream of IT governance structures are quite various than when this situation does non exist. This guide performs an exploratory examination of the factors that affect the picking of IT governance structures in organizations that grow by means of mergers and acquisitions in ontogenesis countries using the results of a case study of a n international telecommunications company.We find that in addition to the normally recognized factors such as government regulation, rivalry and market stability, organizational culture, and IT competence, top management’s predisposition toward a specific business system and governance structure can profoundly regularise the choice of IT governance in organizations. Managerial implications are discussed. Copyright © 2008, IGI Global, distributing in print or electronic forms without written permission of IGI Global is prohibited. The Impact of Mergers & Acquisitions on IT Governance StructuresInTRoduCTIon The business environment has become more and more complex and competitive imputable to the rapid advances in technology and sphericization of the world economy over the last two decades. In order to give way and to compete on a global scale, organizations pee-pee sought to increase their market share through mergers and acquisitions (M&A) both locally an d internationally. In a publication by the Bureau of Census (2002) on mergers and acquisitions in over 41 industries for the year 1998, it was account that in that location were 3,882 cases of U.S. companies acquiring other U. S. companies. These data also indicated that there were 483 cases of outside companies’ acquisitions of U. S. companies at an estimated value of US $233 billion, and 746 cases of U. S. companies acquiring foreign companies at an estimated value of US $128 billion. The trim down toward mergers and acquisitions has been clearly demonstrated at bottom the telecommunications assiduity general (Oh, 1996; Ramamurti, 2000; Trillas, 2002; Wilcox et al. , 2001).Over the last several years, telecommunications companies in North America, Europe, and Asia have looked toward acquisitions and mergers for their survival and growth. During the last decade there has been an change magnitude number of local and foreign investments in the industriousness (Oh, 19 96; Ramamurti, 2000), due primarily to the deregulation of the telecommunications markets as easy as the move toward total or fond(p) privatization of telecommunications companies within developing regions (Gutierrez & Berg, 2000; Melody, 1999).Foreign investments in developing countries within Latin America and the Caribbean have increased tremendously over the last 20 years due largely to changes in the regulatory policies within these regions. Historically, companies in Latin America and the Caribbean were owned primarily by the local states. This changed dramatically in the mid-1980s to 1990s as the increasing economic and financial demands on the industry forced companies in the region to look toward foreign investments in order to stay competitive.Gutierrez and Berg (2000) reported that between the mid-1980s to mid-1990s, 14 out of the 24 telecommunications firms in the region privatized their companies. This strategy is also credited with prospect into motion the cur rent trend in a majority of the region’s telecommunications companies toward increased partial derivative or total privatization (Gutierrez & Berg, 2000; Ramamurti, 2000). As a final result of this massive privatization and merger-and-acquisition movement in the telecommunications industry, the design f IT in these organizations has changed significantly over the last decade. The tralatitious relationship of IT providing support services to individual departments within an organization has evolved into one where IT now plays a broader role in achieving the overall strategic goals of the organization via a focus on global enterprise-wide support that encompasses non only multiple departments, but often different countries and cultures as well.As a result, IT governance in the active and complex business environment has been pushed to the forefront of sarcastic issues facing the management of these organizations, in spite of the fact that little research exists on I T governance that attempts to differentiate and explain the multiple factors that may affect the choice of IT governance structures in the context of mergers and acquisitions in developing regions.In order to address these issues, this article examines the evolution of a governance structure within a global telecommunications network organization, based on a textile developed from the extant literature on embodied and IT governance theories and practices. The article addresses the general research brain: In the process of integrating foreign subsidiaries into the host company, what are the factors that influence the choice of IT governance structure? The primary purpose of the article is to contribute to a broader understanding 959 2 more pages are operational in the full version of this document, which may be purchased using the â€Å"Add to Cart” button on the publishers webpage: www. igi-global. com/chapter/impact-mergers-acquisitions-governancestructures/9761 Related Content Information and Communication engineering science and Good Governance in Africa G. Onu (2007). 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