Post-acquisition changes at the supplier network of the acquired firm

This article deals with post-acquisition changes at the level of the supplier network of the acquired firm. Specifically, we investigate if and how acquisition processes affect the relationships between the acquired firm and its suppliers, which are theoretically categorized into Arm's Length Relationships [ALR] and Embedded Relationships [ER] on the basis of the degree of interdependence with the acquired firm. To do so, we developed a case study based on interviews with the acquiree, the acquired firm and three suppliers ALR and three suppliers ER. The results point out that acquisition processes trigger changes at the level of the supplier net in relation to price, quantity and information sharing. Based on these results, five hypotheses are suggested. Whereas the first one is concerned with the relation between acquisition processes and post-acquisition changes at the supplier network of the acquired firm in relation to price, the other four hypotheses suggest that post-acquisition changes in relation to quantity and information sharing are positively correlated with the degree of interdependence between the acquired firm and its suppliers.