Influences on Post-M&A Corporate Visual Identity Choices
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Volume 8 Number 2
In Practice Influences on Post-M&A Corporate Visual Identity Choices Mary R. Brooks, Philip J. Rosson and Horand I. Gassmann Dalhousie University, Canada
ABSTRACT One of the more important organizational and marketing questions that arises in Mergers and Acquisitions (M&As) is the choice of a name for the new entity, as well as how this is supported through visual devices such as symbols and/or logotypes, slogans, typography and color. With a study of 90 M&As, this paper explores the choice of corporate visual identity (CVI) made following the M&As and examines the extent to which this decision is influenced by (a) the relative power of the two companies, (b) the geographic scope of the M&A and (c) the similarity of the sectors from which the two companies are drawn. The research finds very little influence from these factors but uses the findings to establish an agenda for future research in the field. In particular, future research into cultural differences between acquirer and target companies, and industry effects are encouraged.
KEYWORDS: corporate names and logos, corporate visual identity systems, mergers and acquisitions
Corporate Reputation Review, Vol. 8, No. 2, 2005, pp. 136–144 # Henry Stewart Publications, 1363–3589
Page 136
INTRODUCTION Mergers and acquisitions (M&As) continue to be seen as a strategy for corporate growth and, for this reason, are extensively studied. Many M&As deliver disappointing results and in an attempt to explain performance, research has focused on the variety
of tasks and stages involved in combining previously independent companies. One of the more important organizational and marketing questions that arises in M&As is the choice of a name for the new entity, as well as how this is supported through visual devices such as symbols and/or logotypes, slogans, typography and color. This paper examines these corporate visual identity issues through studying 90 M&As, focusing on two questions. (1) What choice of corporate visual identity (CVI) is made following M&As? (2) To what extent is this decision influenced by (a) the relative power of the two companies, (b) the geographic scope of the M&A and (c) the similarity of the sectors from which the two companies are drawn? The paper begins with a brief literature review, followed by details of the study, then the results and finally, comments on their implications. LITERATURE REVIEW AND RESEARCH PROPOSITIONS There is a substantial literature on M&As, with a variety of thematic approaches taken. The motives and thinking that guide M&A activity is one such theme (Myers, 1976; Trautwein, 1990; Brouthers et al., 1998; Bower, 2001). Another well-developed theme concerns performance questions, such as whether M&As create
Brooks, Rosson and Gassmann
shareholder value (Ravenscraft and Scherer, 1989; Chatterjee, 1992; Bradley et al., 1983; Allen et al., 1995; Markides and Oyon, 1998); have a positive impact on operating results (Sharma and Ho, 2002); and are likely to be successful (Porter, 1987; Bleeke et al., 1993). Stil
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