Decision‐making in conditions of constant change – a case within the automotive industry

Abstract

Purpose

To analyse how differences in decision‐making affected the integration of the R&D functions after Ford's acquisition of Volvo Cars.

Design/methodology/approach

The analysis is carried out in two steps. Step one analyses which type of approach Ford employed to integrate Volvo into the company. Step two analyses how R&D decisions are made by both firms and the consequences of found differences in decision‐making on the success of the integration process.

Findings

Ford's approach to the integration of Volvo Cars follows a symbiosis approach, combining a high need of both organizational autonomy and strategic interdependence. A symbiosis acquisition integration approach demands that the decision‐making processes are given special attention. The acquired firm's specific decision‐making processes need to remain intact in order to preserve its embedded unique R&D value creation capabilities. The decision‐making processes should be kept separate in order to prevent disruption.

Originality/value

The paper relates theories about firm acquisition processes and aspects of organization theory to establish a bridge between these research areas.

Citation

Lundbäck, M. and Hörte, S. (2005), "Decision‐making in conditions of constant change – a case within the automotive industry", Management Decision, Vol. 43 No. 2, pp. 220-235. https://doi.org/10.1108/00251740510581939