Merger: institutional interplay with customer relationship management

Abstract

Purpose

The purpose of this paper is to discuss institutional influence on customer relationship management (CRM) practices and the restructuring of portfolios during the merger of two pharmaceutical companies.

Design/methodology/approach

An explanatory case study from the perspective of the focal actor.

Findings

Isomorphic pressures and some organizational conditions are identified as relevant factors in the redefinition of the customer, the outcome of which is the deinstitutionalization of some CRM practices and the restructuring of customer portfolios. It is also proposed that procedural legitimacy drives the change within the network organization.

Research limitations/implications

This study reported in this paper is idiographic and explores one case. Further longitudinal research is needed in order to generalize the findings.

Practical implications

CRM practices are contingent upon how isomorphic pressures are coped with and how the institutional arrangements are utilized during the merger.

Originality/value

This paper contributes to the discussion on institutional influence on CRM in network organizations.

Citation

Lukkari, P. (2011), "Merger: institutional interplay with customer relationship management", Management Research Review, Vol. 34 No. 1, pp. 17-33. https://doi.org/10.1108/01409171111096450