Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 30840
Information System Integration after Merger and Acquisition in the Banking Industry

Authors: Shang-Ping Lin, Shi-Hwa Lo, Ho-Li Yang


Company mergers and acquisitions reached their peak in the twenty-first century. Mergers and acquisitions have become one of the competitive strategies for external growth. In general, it is believed that mergers and acquisitions can create synergies. However, they require complete information technology system and service integration, especially in the banking industry. Much of the research has focused on performance evaluation, shareholder equity allocation, or even the increase of company market value after the merger and acquisition, whereas few scholars have focused on information system integration post merger and acquisition. This study indicates the role of information systems after a merger and acquisition, explaining the benefits of information system integration using a merger and acquisition case in the banking industry as an example. In addition, we discuss factors that affect the performance of information system integration, and utilize system dynamics to interpret the relationship among factors that affect information system integration performance in the banking industry after a merger and acquisition.

Keywords: System Dynamics, Merger and Acquisition, Information SystemIntegration

Digital Object Identifier (DOI):

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 4644


[1] K. Bailey, "Taking a Byte Out of M&A Failure", CMA Management Hamilton 75(3), pp. 16-19, 2001
[2] Y. Weber, and N. Pliskin, "The Effects of Information Systems Integration and Organizational Culture on a Firm-s Effectiveness", Information and Management, Vol. 30, No. 2, pp. 81-90, 1996.
[3] P. McKiernan, and Y. Merali, "Integrating information systems after a merger", Long Range Planning, Vol. 28, No. 4, pp. 54-62, 1995.
[4] P.C. Haspeslagh, and D.B. Jemmison, "AcquisitionsÔöÇMyths and Reality", Sloane Management Review, pp.53-58, 1987.
[5] D.L. Bohl, Tying the Corporate Knot, The Effects of Mergers and Acquisitions, New York: AMA Membership Publications Division, 1989.
[6] R. Rosenberg, Network Trauma: Making Ends Meet When Two Firms Merge, Data Communications, Vol. 16, No. 8, pp. 102-111, 1987.
[7] J. H. Sheridan, "What path to follow?", Industry Week, Vol. 244, No. 13, pp. 41-45, 1995.
[8] D. B. Jemison, and S. B. Sitkin, "Acquisitions: the process can be a problem", Harvard Business Review, pp. 107-116, 1986.
[9] M. Buck-Lew, C. E. Wardle, and N. Pliskin, "Accounting for information technology in corporate acquisitions", Information & Management, Vol. 22, No. 6, pp. 363-369, 1992.
[10] S. S. Robbins, and A. C. Stylianou, "Post-merger systems integration: the impact on IS capabilities", Information & Management, Vol. 32, pp. 205-212, 1999.
[11] A. C. Stylianou, C. J. Jeffries, and S. S. Robbins, "Corporate mergers and the problems of IS integration", Information & Management, Vol. 31,No. 4, pp. 203-213, 1996.
[12] Stephanie Mercurio, "Bringing IT Together: The Challenge of Integrating Information Systems after a Merger", Bond Buyer. New York, N.Y.14,.329, Iss. 30725; pp. 16, 1999.
[13] Mary McDonald, Terry A Mors, Ann Phillips., "Management system integration: Can it be done?" Quality Progress. Milwaukee: 36, Iss. 10; pp. 67, 2003.
[14] Kasavana, L. Michael, David, Smith. Julie "Creating a Multi-Processor Environment Through Systems Integration" Cornell Hotel and Restaurant Administration Quarterly, 1992, Ithaca.33, Iss. 4; pg. 57, 6 pgs.
[15] W. E. Souder, and R. K. Moenaert, "Integrating Marketing and R&D Project Personnel within Innovation Projects: An Information Uncertainty Model", Journal of Management Studies, 29(4), pp.485-512, 1992.
[16] I. Thomas, and B. Neimeh, "Definition of Tool Integration for Environment," IEEE Software, pp. 29-35, March 1992.
[17] S. T. Zailyk, "Integration Island of Automation: The Factory Floor Network," Journal of Information System Management, pp. 68-72, Summer 1989.
[18] Jain, Arun, Smart Legacy Modernization, Polaris Software Lab Limited, 2005.
[19] L. Loverde, Technology Driven Deals in Mergers and Acquisitions: How Are They Different?, The Corporate Growth Report, 1990.
[20] R. V. Bradley, J. L. Pridmore, and T. A. Byrd, "Information Systems Success in the Context of Different Corporate Cultural Types: An Empirical Investigation", Journal of Management Information Systems, Vol. 33, No. 2, pp. 267-294, 2006.
[21] Lin, Sing-Ru, The Information Technology (IT) Integration of Bank Merger: An Exploratory Case Study, MBA Thesis, National Central University, 2006.
[22] Klausner and White, eds., Structural Change in Banking, NYU Salomen Center, Leonard N. Stern School of Business, 1993.
[23] J. W. Forrester, Industrial Dynamics, The MIT Press (Wright-Allen Series in SD), 1961.
[24] W. Zheng, B. Yang, G.N. McLean, Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management, Journal of Business Research, Vol. 63, Iss. 7, July 2010, pp. 763-771.
[25] Paina-Racolta, Nicoleta; The Interference Between the Organizational Culture and Organizational Structure, Studia Universitatis Babes-Bolyai - European Studies (1/2001) 113-122.
[26] John W. O'Neill, Laura L. Beauvais, Richard W. Scholl The use of organizational culture and structure to guide strategic behavior: An information processing perspective, the Journal of Behavioral and Applied Management - Winter/Spring 2001 - Vol. 2(2) pp. 131-150.
[27] Kemeny, M. Elizabeth, Staff Development of Direct Care Workers in Pennsylvania: The Relationship between Organizational Structure and Culture and Best-Practices in Training, 8-Jun. 2010,