Business and Management INK

Is Joint Achievement of Customer Satisfaction and Efficiency Beneficial in Merger Contexts?

May 30, 2014 1107

[Editor’s Note: We’re pleased to welcome Vanitha Swaminathan, who collaborated with Christopher Groening, Vikas Mittal, and Felipe Thomaz on their paper “How Achieving the Dual Goal of Customer Satisfaction and Efficiency in Mergers Affects a Firm’s Long-Term Financial Performance” from the May issue of Journal of Service Research.]

02JSR13_Covers.indd• What inspired you to be interested in this topic?
This paper began by looking at the often repeated assertion that mergers lead to reductions in customer satisfaction. While one may believe this to be the case, there is evidence that customer satisfaction improvements actually increase financial value…which led us to ask the question, would managers wishing to maximize shareholder value reduce their focus on customer satisfaction in a merger? Following this, we wondered if a focus on both customer satisfaction and efficiency improves shareholder value even more in a merger context.

• Were there findings that were surprising to you?
Contrary to what conventional wisdom regarding mergers and customer satisfaction, we found that a dual emphasis on both customer satisfaction and efficiency improvements will actually benefit firms in a merger context. I think the biggest surprise was our finding that non-merged firms did not significantly benefit from a dual emphasis. In other words, we thought that a merged firm would find greater value in a dual emphasis, but not that a non-merged would find little to none.

• How do you see this study influencing future research and/or practice? It will help to go deeper into analyzing why customer satisfaction and efficiency improvements in merger contexts facilitate shareholder value maximization, more so than non-merger settings. Is it the improved availability of resources, or greater access to more profitable customer groups? Is it due to the creation of new synergies between the merging companies?
Addressing these questions will help increase our understanding of when to best implement these typically opposing goals (i.e., efficiency and customer satisfaction improvements) even in non-merger settings.

Read “How Achieving the Dual Goal of Customer Satisfaction and Efficiency in Mergers Affects a Firm’s Long-Term Financial Performance” from Journal of Service Research for free by clicking here. Don’t forget to click here to sign up for e-alerts and be in the know about all the latest from Journal of Service Research!

swaminathan-vanithaVanitha Swaminathan is Associate Professor of Business Administration and Robert W. Murphy Faculty Fellow in Marketing at the University of Pittsburgh. Her research interests revolve around branding strategy and consumer-brand relationships.GroeningChris_1

Christopher Groening is Assistant Professor of Marketing at the College of Business at Kent State University. Chris’s current academic research centers around investigating stakeholder influence on the financial outcomes of a firm.

MittalPhotoVikas Mittal is J. Hugh Liedtke Professor of Marketing at the Jones Graduate School of Business, Rice University and Adjunct Professor of Family Medicine at Baylor College of Medicine.Thomaz

 

Felipe Thomaz is a doctoral candidate at the Katz Graduate School of Business, University of Pittsburgh, Pittsburgh.

Business and Management INK puts the spotlight on research published in our more than 100 management and business journals. We feature an inside view of the research that’s being published in top-tier SAGE journals by the authors themselves.

View all posts by Business & Management INK

Related Articles

Boards and Internationalization Speed
Business and Management INK
November 18, 2024

Boards and Internationalization Speed

Read Now
How Managers Can Enhance Trust
Business and Management INK
November 11, 2024

How Managers Can Enhance Trust

Read Now
The Role of Place in Sustainability
Business and Management INK
October 28, 2024

The Role of Place in Sustainability

Read Now
Turning to Glitter in Management Studies – Why We Should Take ‘Unserious’ Glitter Serious to Understand New Management Practices
Business and Management INK
October 24, 2024

Turning to Glitter in Management Studies – Why We Should Take ‘Unserious’ Glitter Serious to Understand New Management Practices

Read Now
Utilizing Academic-Practitioner Partnering for Societal Impact

Utilizing Academic-Practitioner Partnering for Societal Impact

In this article, co-authors Natalie Slawinski, Bruna Brito, Jennifer Brenton, and Wendy Smith reflect on the inspiration behind their research article, “Reflections on deep academic–practitioner partnering for generative societal impact,” published in Strategic Organization.

Read Now
Trippin’ Forward: Management Research and the Development of Psychedelics

Trippin’ Forward: Management Research and the Development of Psychedelics

Charlie Smith reflects on his interest in psychedelic research, the topic of his research article, “Psychedelics, Psychedelic-Assisted Therapy and Employees’ Wellbeing,” published in Journal of Management Inquiry.

Read Now
Using Ethnography to Explore Entrepreneurial Extracurricular Activities

Using Ethnography to Explore Entrepreneurial Extracurricular Activities

Co-authors Birgitte Wraae and Nicolai Nybye reflect on the inspiration behind their research article, “Learning to Be “Me,” “the Team,” and “the Company” Through Entrepreneurial Extracurricular Activities: An Ethnographic Approach,” published in Entrepreneurship Education and Pedagogy.

Read Now
0 0 votes
Article Rating
Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments

Reblogged this on Center for Services Leadership Blog and commented:
Merger may provide the right opportunity to improve both customer satisfaction and efficiency while maximizing shareholder value.