Customer relationship challenges following international acquisitions

Abstract

Purpose – An important task following international acquisitions is to coordinate customer relationships; that is, to organise customer interfaces and possibly establish new relationships between customers and the acquirer/the acquired party. Yet, such coordination may prove to be problematic, not the least since customers react to acquisitions. The purpose of this paper is to describe and discuss customer relationship coordination challenges following international acquisitions. Focus is placed on business-to-business customers in the country of the acquired party. Design/methodology/approach – The paper is based on three case studies representing overlapping customers, customers of an acquired party new to the acquirer, and customers new to the acquired party. Non-standardised, face-to-face interviews were the main data source, and were complemented with secondary data such as newspaper items and annual reports. Findings – Three main challenges are identified: internal competition and cannibalisation; customers not being interested in the new party; and the acquired party demonstrating its independence through customers. Practical implications – Managerially, any coordination of customer relationships needs to be weighted towards risks for customer losses. It is important to maintain ties to customers – sales and maintenance staff, the product/service, etc. – if customers are to continue with the firm. It is also important that sales and maintenance staff see the benefits of the acquisition. Originality/value – While international acquisitions are a frequent means to reach new markets and customers, the problems of coordinating customer relationships following them have not been previously researched. Theoretically, the paper contributes to research through categorising and contextually explaining customer relationship coordination challenges in international acquisitions.