Maximising the potential of dynamic IT capabilities in merged firms : a due diligence consideration for Merger and Acquisition (M&A) operational systems integration alignment in South Africa

Abstract

Business strategy, supported by merger and acquisition growth strategies in the age of digital innovation, necessitates precise alignment between strategic objectives and technology enablement. This qualitative research examines the business acquisition process and the considerations for integration plans that must be addressed during the due diligence phase. The primary aim is to explore how organisations leverage IT capabilities to facilitate successful mergers and acquisitions. The discussion delves into the challenges and processes associated with integrating acquired businesses, particularly emphasising technology readiness, governance processes, and IT capability planning. These factors are essential for ensuring a seamless migration and merger of acquired entities post-acquisition, thereby unlocking synergy benefits. The research also investigates the complexities of integrating acquired and the significance of maintaining competitive advantages through distinct capabilities. Moreover, it underscores the necessity of continuous skill development in an ever-evolving business environment. In conclusion, the research contributes to the extant literature by highlighting the key factors for success in understanding IT capabilities and their role in the success of mergers and acquisitions. It proposes a framework for extending the Strategic Alignment Method framework.