Management Control Systems and Post-Acquisition Integration

Purpose: This paper examines the transformative roles of Management Control Systems (MCS) in strategizing Post-Acquisition Integration (PAI) processes. It draws largely on Latour’s (1986) practice based perspective, where a PAI strategy and MCSs are regarded as social practice, defined relationally and understood as bundles of activities, which take form in and through practice and interaction between diverse actors and actants.

Design/Methodology/Approach: The study adopts a qualitative approach where data is collected and analysed from an Australian case study company which had recently completed a number of acquisitions. Research methods used include semi-structured interviews, a review of archival documents and observations, to capture daily integration activities and practices of actors operating in the company.

Findings: Findings demonstrate the performative powers and intermediary effects of MCS which structure human resources, customers and sales integration activities and make PAI relations strategy visible and actionable.

Originality/Value: This study makes contributions to the research in the field of accounting, as it provides further knowledge on the important role that MCS play in forming integration strategies and how they are implemented. It also contributes to the strategic management literature by empirically demonstrating how integration strategy is defined relationally, and by proposing changes to the theoretical base of management accounting by empirically illustrating the agency of MCS as a non-human actant in strategising PAI relations.

Research Implications: This study has practical implications for the accounting profession, providing an opportunity to reflect on the integration skills required by accountants and the main factors that they should focus to achieve timely and effective integration. Business executives engaged in acquisition activities are directed to consider MCS as an important part of performative action in the formation and implementation of PAI relation strategies in order to have a successful acquisition.