Global Quality Management Systems: Strategies in a Challenging, Complex Environment of Mergers, Acquisitions, and Strategic Partnerships

Abstract

The relative newness of globalization processes means that insights into the complexities of management systems operating in a global environment are yet to mature. No single definition for global quality management systems (QMS) has been accepted in the literature, and there is a dearth of systematic research, models and methodologies for dealing with the complex challenges posed by globalization. These challenges are further compounded when organizations use business and strategic processes such as mergers, acquisitions, and strategic partnerships to accelerate growth. This article fills a gap in the field of global QMS development in light of these processes, and presents a preliminary attempt to develop theories and methods for analyzing global QMS in the dynamic field of mergers, acquisitions, and strategic partnerships. Data was collected from intensive field research concerning the development processes of 18 multinational companies over three years. Grounded Theory methodology was used for developing a nascent theory, a starting point not only for further research but also for developing a global QMS strategy, which is currently conspicuous in its absence. Key variables that influence the work environment, constraints, interfaces, and goals of a global QMS were formulated by reviewing the development processes of the participating multinational companies, and identifying the theoretical, practical, and gaps of leading strategic, operational, and marketing characteristics and needs generally and specifically of the QMS as related to M&A. The themes articulate the significant issues and challenges that global QMS face following M&A and can serve as a preliminary skeleton for constructing a body of knowledge concerning the proactive perception of the conduct of a global quality system experiencing the challenges of M&A and global expansion. This article lays a potential foundation for broader and deeper research on a nascent theory, that will be able to guide global QMS functions in dealing with the dynamic process of mergers, acquisitions, and strategic partnerships. The impact assessment serves as a tool for identifying and developing the proper QMS integration strategy, thereby helping plan global QMS strategy and identifying the steps necessary for its effective implementation. Integration of strategic, operational, marketing, and QMS assessments before conducting the merger and acquisition (M&A) augments the functional level of management and supports developing a strategy for integrating the global QMS in the acquired company.