Cross-border M&A has become one of the leading approaches for firms to
gain access to global markets. Yet there has been little progress in the
research literature exploring the role that culture may play in the success
of these ventures. Poor culture-fit has often been cited as one reason why
M&A has not produced the outcomes organizations hoped for (Cartwright & Schoenberg, 2006). Cross-border M&A has the added challenges of having to deal with both national and organizational culture
differences. In this chapter we review the literature on cultural integration
in cross-border M&A and provide a framework designed to help manage
the integration process throughout the M&A lifecycle. This framework
presents culture assessment and integration as a crucial component to
reducing poor culture-fit as a barrier to M&A success.
The role of multi-ethnic workforces in the internationalisation of SMEs_G ...Gonzalo Shoobridge
This document discusses how an ethnically diverse workforce can help small and medium enterprises (SMEs) overcome barriers to internationalization. It argues that an ethnically diverse workforce is a resource that can facilitate SMEs' international activities by reducing barriers, managing cross-border transactions more effectively, and improving their ability to expand internationally. The document uses the resource-based view of the firm to explain how an ethnically diverse workforce, with its unique knowledge, skills and networks, can provide SMEs competitive advantages in internationalizing.
Internationalization and globalization have significantly impacted human resource management practices over several evolutionary phases:
1) In the early 20th century, the first multinational companies established foreign offices and subsidiaries, sending expatriates abroad which highlighted the need to adapt to different cultures.
2) By the 1960s, companies significantly increased their use of expatriates to manage growing foreign operations. However, many expatriates struggled due to a lack of cultural understanding, showing the need for improved international human resource management practices.
3) In recent decades, globalization has strengthened localization trends where decision-making has decentralized, expatriate numbers have reduced, and local experts with strong cultural knowledge have taken on more prominent roles,
This document discusses managing international mergers and acquisitions. It begins by noting that while international M&As are frequently used for foreign investment, most transactions fail to achieve objectives. The paper then proposes a framework suggesting cultural combination during post-acquisition integration is key to performance. Specifically, it argues cultural due diligence, cross-cultural communication, connection, and control can determine successful cultural blending and thereby impact acquisition results.
This document discusses the drivers and hurdles of globalization. The key drivers that propel globalization forward are technological advances in transportation and communication, political liberalization of trade policies, saturation of domestic markets leading companies to internationalize, leveraging costs differences between countries, and increased global competition. However, globalization also faces hurdles such as technological standards barriers between countries, cultural differences that make cross-border business difficult, debates around the ethics of international trade practices, and economic trade barriers that governments impose.
The document outlines learning outcomes for a chapter on the management environment. It will describe three waves of social history and their implications, the importance of a global perspective on management, and how technology is changing manager roles. It will also define social responsibility, ethics, entrepreneurship, workforce diversity issues, and reasons for downsizing. Additional topics covered include creating customer-focused cultures and a focus on quality and continuous improvement.
This document discusses managing in a global environment. It covers the importance of viewing management from a global perspective and identifies three attitudes towards global business: parochialism, ethnocentrism, and geocentrism. Regional trading alliances like the EU, NAFTA, and ASEAN are described. The stages organizations go through to operate globally and types of global organizations like multinational, transnational, and borderless are outlined. Cultural differences according to Hofstede's four dimensions of culture and challenges of global assignments are also summarized.
The document provides an overview of global business and internationalization. It defines key terms like globalization and discusses the various drivers and origins of international business, including reasons companies go international in either a reactive or proactive manner. The document also examines restraints to globalization and outlines different levels of international orientation from ethnocentric to polycentric perspectives.
This document provides an overview of key concepts in international business. It discusses why nations trade, focusing on comparative advantage and how trading expands markets and production efficiency. It also summarizes how international trade is measured using balance of trade and payments. Major barriers to global business are identified as social/cultural differences, economic infrastructure variations, and legal/political instability across countries. International organizations help reduce trade barriers by linking exchange rates and guarding against protectionism.
The role of multi-ethnic workforces in the internationalisation of SMEs_G ...Gonzalo Shoobridge
This document discusses how an ethnically diverse workforce can help small and medium enterprises (SMEs) overcome barriers to internationalization. It argues that an ethnically diverse workforce is a resource that can facilitate SMEs' international activities by reducing barriers, managing cross-border transactions more effectively, and improving their ability to expand internationally. The document uses the resource-based view of the firm to explain how an ethnically diverse workforce, with its unique knowledge, skills and networks, can provide SMEs competitive advantages in internationalizing.
Internationalization and globalization have significantly impacted human resource management practices over several evolutionary phases:
1) In the early 20th century, the first multinational companies established foreign offices and subsidiaries, sending expatriates abroad which highlighted the need to adapt to different cultures.
2) By the 1960s, companies significantly increased their use of expatriates to manage growing foreign operations. However, many expatriates struggled due to a lack of cultural understanding, showing the need for improved international human resource management practices.
3) In recent decades, globalization has strengthened localization trends where decision-making has decentralized, expatriate numbers have reduced, and local experts with strong cultural knowledge have taken on more prominent roles,
This document discusses managing international mergers and acquisitions. It begins by noting that while international M&As are frequently used for foreign investment, most transactions fail to achieve objectives. The paper then proposes a framework suggesting cultural combination during post-acquisition integration is key to performance. Specifically, it argues cultural due diligence, cross-cultural communication, connection, and control can determine successful cultural blending and thereby impact acquisition results.
This document discusses the drivers and hurdles of globalization. The key drivers that propel globalization forward are technological advances in transportation and communication, political liberalization of trade policies, saturation of domestic markets leading companies to internationalize, leveraging costs differences between countries, and increased global competition. However, globalization also faces hurdles such as technological standards barriers between countries, cultural differences that make cross-border business difficult, debates around the ethics of international trade practices, and economic trade barriers that governments impose.
The document outlines learning outcomes for a chapter on the management environment. It will describe three waves of social history and their implications, the importance of a global perspective on management, and how technology is changing manager roles. It will also define social responsibility, ethics, entrepreneurship, workforce diversity issues, and reasons for downsizing. Additional topics covered include creating customer-focused cultures and a focus on quality and continuous improvement.
This document discusses managing in a global environment. It covers the importance of viewing management from a global perspective and identifies three attitudes towards global business: parochialism, ethnocentrism, and geocentrism. Regional trading alliances like the EU, NAFTA, and ASEAN are described. The stages organizations go through to operate globally and types of global organizations like multinational, transnational, and borderless are outlined. Cultural differences according to Hofstede's four dimensions of culture and challenges of global assignments are also summarized.
The document provides an overview of global business and internationalization. It defines key terms like globalization and discusses the various drivers and origins of international business, including reasons companies go international in either a reactive or proactive manner. The document also examines restraints to globalization and outlines different levels of international orientation from ethnocentric to polycentric perspectives.
This document provides an overview of key concepts in international business. It discusses why nations trade, focusing on comparative advantage and how trading expands markets and production efficiency. It also summarizes how international trade is measured using balance of trade and payments. Major barriers to global business are identified as social/cultural differences, economic infrastructure variations, and legal/political instability across countries. International organizations help reduce trade barriers by linking exchange rates and guarding against protectionism.
This document provides an introduction to international business. It defines international business as trade and investment activities conducted across national borders. Firms internationalize through activities like exporting, importing, and foreign direct investment. The document also discusses the key participants in international business, common reasons why firms pursue international expansion, and some of the main risks involved. Studying international business can provide firms with competitive advantages like access to new markets and resources.
Introduction to international business - Manu Melwin Joymanumelwin
“ All institutions have to make global competitiveness a strategic goal. No institution, whether a business, a university or a hospital, can hope to survive, let alone to succeed unless it measures up to the standards set by the leaders in its fields, any place in the world.” -Management challenges of 21st century by Peter drucker.
Is small and medium sized beautiful - the structure and evolution of family s...Ying wei (Joe) Chou
This document provides a literature review and bibliometric analysis of the scientific research on small and medium-sized family businesses (family SMEs). It identifies four main clusters of research on family SMEs: succession in family SMEs, performances of family SMEs, internationalization of family SMEs, and organizational culture of family SMEs. Through comparative bibliometric analysis of 155 research articles from 1989 to 2018, the document maps the evolution of the field and identifies the most influential studies and themes. It aims to provide a systematic analysis of the scientific knowledge on family SMEs to help advance future research.
Corporate entrepreneurship and business performance the moderating role of o...Ying wei (Joe) Chou
This document summarizes a research paper that investigated the relationships between corporate entrepreneurship, organizational culture, and business performance in selected banks in Pakistan. The study found that corporate entrepreneurship was positively related to business performance, and that organizational culture was positively related to business performance. Additionally, the study found support for the hypothesis that organizational culture moderates the relationship between corporate entrepreneurship and business performance, such that the relationship is stronger when organizational culture is considered. The study used a survey to collect data from managers in major Pakistani banks and analyzed the results using structural equation modeling.
An Investigation of Mongolian National Cultural Values using the Hofstede 6 D...ijtsrd
This paper represents an investigation into the classification of Mongolian culture using the six dimensional model of Geert Hofstede Power Distance, Uncertainty Avoidance, Individualism Collectivism, Masculinity Femininity, Long Short Term Orientation, and Indulgence Restrain. Mongolia was not one of the countries included in Hofstede's original studies, and no evidence of a subsequent study of Mongolia has been found in the literature. While Hofstede and others did study many countries in Asian, there is a lack of empirically based research on the cultural classification of Mongolian. The results of this study indicate that Mongolia is a masculine, individualist culture that is relatively low in uncertainty avoidance and high in power distance, whose people have a short term orientation towards time. The paper compares Mongolian culture with those of other countries in Asian, as well as with select cultures from other regions. Narangarav Purevdorj | Ankhbayar Bolormaa | Ariunaa. Kh "An Investigation of Mongolian National Cultural Values using the Hofstede 6-D Model" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-4 , June 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31470.pdf Paper Url :https://www.ijtsrd.com/management/marketing-management/31470/an-investigation-of-mongolian-national-cultural-values-using-the-hofstede-6d-model/narangarav-purevdorj
02 The Cultural Environments Facing BusinessBrent Weeks
To understand methods for learning about cultural environments
To analyze the major causes of cultural difference and change
To discuss behavioral factors influencing countries’ business practices
To understand guidelines for cultural adjustment
This document summarizes a study on Chinese business people's views regarding engaging in business partnerships with foreign firms, particularly Australian firms. The study was conducted in two phases, with phase one involving in-depth interviews of 6 Chinese business people in managerial positions. Phase two surveyed 49 additional Chinese business people to further understand social, cultural, and institutional factors that may influence their decisions to engage in international business partnerships. Key factors examined included the importance of relationships and trust between partners, as well as differences between more impersonal Western styles of business versus more personal and long-term relationship-focused business in China.
Thinking about developing business leadership for the post covid worldYing wei (Joe) Chou
The document discusses the need to develop business leadership skills for the post-COVID world. It describes a model developed at Sacred Heart University's Center for Nonprofits that may provide students with the skills, attitudes and values required for successful social entrepreneurship. Over 15 years, 925 MBA students have completed 260 consulting projects for 125 nonprofit clients, totaling 65,000 volunteer hours and $60,000 in consulting services to help nonprofits. The model emphasizes developing students' "knowing," "doing," and "being" to prepare them for leadership in a world that demands both business acumen and social purpose.
This document is the first chapter of a textbook on international business. It discusses the concepts of globalization and international business. Globalization refers to the integration of economic, financial, cultural and political systems across the world. Factors driving globalization include economic liberalization and technological advances, while factors restraining it include protectionism and cultural differences. International business involves cross-border trade, investment, and management. Companies expand internationally to access new markets or cut costs. Managing globally requires integrated strategies and adapting to different country environments.
Ethnocentric Behaviour and Business Performance of Multinational Enterprises ...IJAEMSJORNAL
This document summarizes a study that examined how ethnocentric behavior of multinational enterprises (MNEs) impacts business performance in Nigeria. The study assessed how foreign culture, use of expatriates, and standardized marketing strategies affected operating costs, employee acceptance, and customer loyalty. It found that an MNE's foreign culture negatively impacted acceptance of management techniques by local employees. It also found that using expatriates in strategic positions increased operating costs, while standardized marketing strategies encouraged customer loyalty in Nigeria. The study recommends incorporating local employees in decisions and guiding MNEs to avoid culture shock to improve effectiveness in host countries.
The document discusses globalization and its impact on management. It provides definitions of globalization, outlines evidence of increasing globalization through measures like world trade and foreign direct investment. It also discusses some of the positive and negative effects of globalization. The document then focuses on building global management skills and the types of managers needed for global operations. It provides examples of global healthcare organizations and medical tourism in countries like India.
Globalization has increased international trade and foreign direct investment, integrating national economies. This has made business environments increasingly global and competitive, even for domestic firms. Firms now face competition from low-cost foreign producers in their domestic markets. To remain competitive, firms must become global in their organization of production and marketing. Some key reasons for firms to internationalize include seeking growth opportunities in foreign markets, taking advantage of lower costs abroad, and responding to competitive pressures in the domestic market from global rivals. However, international business also presents special challenges like differences in political, legal, cultural, economic and business environments across countries.
This document provides an overview of key concepts in international business including definitions of globalization and globalism, factors of the global business environment, the mechanics of international trade transactions, the role of technology, cultural considerations, trade finance, logistics, relevant policies and regulations, and how to develop an international business plan. It discusses topics such as global supply chains, trade in services, high and low context cultures, business ethics, and transportation modes. The document aims to equip readers with foundational knowledge for understanding and engaging in global commerce.
Conventional explanatory variables and bilateral trade for African countries ...Omegal Mahabeer
The document summarizes the structure and key points of a presentation on conventional explanatory variables and bilateral trade for African countries from 2000 to 2005. The presentation includes an introduction discussing the topic and research question. It reviews literature on factors that influence bilateral trade, including common language, GDP, and religious diversity. The methodology section outlines the regression analysis of explanatory variables against bilateral trade data for 20 African countries in 2000 and 2005. The results section analyzes trends, country profiles, and regression outputs. Finally, the conclusion discusses the impact of variables like GDP, population, and religious diversity on bilateral trade and the overall conclusion.
International trade occurs when countries exchange goods and services. It benefits countries by allowing them to specialize in producing goods where they have lower costs or a comparative advantage. This makes resources more efficiently used globally. International trade takes place as countries have differences in climate, resources, labor, and capital that provide opportunities for specialization. When a country can produce a good at a lower price than another, both countries benefit through trade. The main benefits of international trade are comparative advantage, economies of scale, increased competition, transfer of technology, and more jobs.
Study of International Business Articles.
Part 1: Essential of International Business.
Part 2: Theories applied to International Business.
Part 3: Bargaining Approach and Resources.
Part 4: International Business Phenomena.
Part 5: Internalization.
Part 6: Competitive advantages.
Ppt 01 introduction to international businessPadmini Agrawal
This document provides an introduction to international business. It defines international business as economic transactions that occur across national boundaries between two countries. It discusses several theories of international trade and factors that influence international business such as different legal, political, and social environments between countries. The document also lists assignments for students and references for further reading on international business.
Call for papers: Special Issue on Acquisitions and International Joint Ventur...Nnamdi Raymond Oguji (PhD)
This document calls for papers for a special issue on market entry strategies of foreign firms into Africa, focusing on acquisitions and international joint ventures. It provides background on the limited existing research on foreign market entry into Africa and calls for more studies exploring various aspects of acquisitions and joint ventures in the African context. Specifically, it seeks papers that analyze motives, partner selection, ownership strategies, management, cultural and performance issues related to acquisitions and international joint ventures in Africa.
The document discusses international strategy and provides frameworks for assessing internationalization potential, sources of competitive advantage, types of international strategies, market selection, entry modes, performance impacts, and subsidiary roles. Key factors in internationalization include drivers of globalization, Porter's Diamond model of national advantages, and the four main international strategies. Markets should be evaluated based on attractiveness, distance, and retaliation risk. Common entry modes are exporting, licensing, joint ventures, and foreign direct investment. Internationalization may follow an inverted U-shape performance relationship.
1 2 introduction of international business environmentUrvashi Dwivedi
The document discusses key concepts related to international business environments including domestic versus international business, liberalization, privatization, and globalization. It provides definitions and explanations of international business, international trade, international marketing, international investments, and global business. It also compares differences between domestic and international business environments and discusses reasons for international business expansion.
1) The document provides notes on World War 1 on the Eastern Front and American involvement. It discusses topics like the Ottoman Empire and its role in the war, the failed British attack on Gallipoli, and the Armenian genocide.
2) It also covers Russia's role in the war, including their high casualty rates, mass starvation and riots. It mentions Vladimir Lenin and Germany sending him to Russia to spark revolution.
3) Additionally, it summarizes America's entry into the war in 1917 and President Woodrow Wilson's "Fourteen Points" that outlined his vision for peace after the war and the creation of a League of Nations.
This document proposes an improved thresholding method for denoising electrocardiogram (ECG) signals corrupted by noise. The method involves:
1) Decomposing the noisy ECG signal using discrete wavelet transform into approximation and detail coefficients.
2) Applying thresholding to the detail coefficients to estimate the wavelet coefficients. The threshold value is chosen based on the level and variance of the noise.
3) The improved thresholding method estimates coefficients in a way that ensures continuity and avoids oscillations, while retaining characteristics of the original ECG signal like amplitude of R waves. Experimental results show it performs better than traditional hard and soft thresholding methods.
This document provides an introduction to international business. It defines international business as trade and investment activities conducted across national borders. Firms internationalize through activities like exporting, importing, and foreign direct investment. The document also discusses the key participants in international business, common reasons why firms pursue international expansion, and some of the main risks involved. Studying international business can provide firms with competitive advantages like access to new markets and resources.
Introduction to international business - Manu Melwin Joymanumelwin
“ All institutions have to make global competitiveness a strategic goal. No institution, whether a business, a university or a hospital, can hope to survive, let alone to succeed unless it measures up to the standards set by the leaders in its fields, any place in the world.” -Management challenges of 21st century by Peter drucker.
Is small and medium sized beautiful - the structure and evolution of family s...Ying wei (Joe) Chou
This document provides a literature review and bibliometric analysis of the scientific research on small and medium-sized family businesses (family SMEs). It identifies four main clusters of research on family SMEs: succession in family SMEs, performances of family SMEs, internationalization of family SMEs, and organizational culture of family SMEs. Through comparative bibliometric analysis of 155 research articles from 1989 to 2018, the document maps the evolution of the field and identifies the most influential studies and themes. It aims to provide a systematic analysis of the scientific knowledge on family SMEs to help advance future research.
Corporate entrepreneurship and business performance the moderating role of o...Ying wei (Joe) Chou
This document summarizes a research paper that investigated the relationships between corporate entrepreneurship, organizational culture, and business performance in selected banks in Pakistan. The study found that corporate entrepreneurship was positively related to business performance, and that organizational culture was positively related to business performance. Additionally, the study found support for the hypothesis that organizational culture moderates the relationship between corporate entrepreneurship and business performance, such that the relationship is stronger when organizational culture is considered. The study used a survey to collect data from managers in major Pakistani banks and analyzed the results using structural equation modeling.
An Investigation of Mongolian National Cultural Values using the Hofstede 6 D...ijtsrd
This paper represents an investigation into the classification of Mongolian culture using the six dimensional model of Geert Hofstede Power Distance, Uncertainty Avoidance, Individualism Collectivism, Masculinity Femininity, Long Short Term Orientation, and Indulgence Restrain. Mongolia was not one of the countries included in Hofstede's original studies, and no evidence of a subsequent study of Mongolia has been found in the literature. While Hofstede and others did study many countries in Asian, there is a lack of empirically based research on the cultural classification of Mongolian. The results of this study indicate that Mongolia is a masculine, individualist culture that is relatively low in uncertainty avoidance and high in power distance, whose people have a short term orientation towards time. The paper compares Mongolian culture with those of other countries in Asian, as well as with select cultures from other regions. Narangarav Purevdorj | Ankhbayar Bolormaa | Ariunaa. Kh "An Investigation of Mongolian National Cultural Values using the Hofstede 6-D Model" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-4 , June 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31470.pdf Paper Url :https://www.ijtsrd.com/management/marketing-management/31470/an-investigation-of-mongolian-national-cultural-values-using-the-hofstede-6d-model/narangarav-purevdorj
02 The Cultural Environments Facing BusinessBrent Weeks
To understand methods for learning about cultural environments
To analyze the major causes of cultural difference and change
To discuss behavioral factors influencing countries’ business practices
To understand guidelines for cultural adjustment
This document summarizes a study on Chinese business people's views regarding engaging in business partnerships with foreign firms, particularly Australian firms. The study was conducted in two phases, with phase one involving in-depth interviews of 6 Chinese business people in managerial positions. Phase two surveyed 49 additional Chinese business people to further understand social, cultural, and institutional factors that may influence their decisions to engage in international business partnerships. Key factors examined included the importance of relationships and trust between partners, as well as differences between more impersonal Western styles of business versus more personal and long-term relationship-focused business in China.
Thinking about developing business leadership for the post covid worldYing wei (Joe) Chou
The document discusses the need to develop business leadership skills for the post-COVID world. It describes a model developed at Sacred Heart University's Center for Nonprofits that may provide students with the skills, attitudes and values required for successful social entrepreneurship. Over 15 years, 925 MBA students have completed 260 consulting projects for 125 nonprofit clients, totaling 65,000 volunteer hours and $60,000 in consulting services to help nonprofits. The model emphasizes developing students' "knowing," "doing," and "being" to prepare them for leadership in a world that demands both business acumen and social purpose.
This document is the first chapter of a textbook on international business. It discusses the concepts of globalization and international business. Globalization refers to the integration of economic, financial, cultural and political systems across the world. Factors driving globalization include economic liberalization and technological advances, while factors restraining it include protectionism and cultural differences. International business involves cross-border trade, investment, and management. Companies expand internationally to access new markets or cut costs. Managing globally requires integrated strategies and adapting to different country environments.
Ethnocentric Behaviour and Business Performance of Multinational Enterprises ...IJAEMSJORNAL
This document summarizes a study that examined how ethnocentric behavior of multinational enterprises (MNEs) impacts business performance in Nigeria. The study assessed how foreign culture, use of expatriates, and standardized marketing strategies affected operating costs, employee acceptance, and customer loyalty. It found that an MNE's foreign culture negatively impacted acceptance of management techniques by local employees. It also found that using expatriates in strategic positions increased operating costs, while standardized marketing strategies encouraged customer loyalty in Nigeria. The study recommends incorporating local employees in decisions and guiding MNEs to avoid culture shock to improve effectiveness in host countries.
The document discusses globalization and its impact on management. It provides definitions of globalization, outlines evidence of increasing globalization through measures like world trade and foreign direct investment. It also discusses some of the positive and negative effects of globalization. The document then focuses on building global management skills and the types of managers needed for global operations. It provides examples of global healthcare organizations and medical tourism in countries like India.
Globalization has increased international trade and foreign direct investment, integrating national economies. This has made business environments increasingly global and competitive, even for domestic firms. Firms now face competition from low-cost foreign producers in their domestic markets. To remain competitive, firms must become global in their organization of production and marketing. Some key reasons for firms to internationalize include seeking growth opportunities in foreign markets, taking advantage of lower costs abroad, and responding to competitive pressures in the domestic market from global rivals. However, international business also presents special challenges like differences in political, legal, cultural, economic and business environments across countries.
This document provides an overview of key concepts in international business including definitions of globalization and globalism, factors of the global business environment, the mechanics of international trade transactions, the role of technology, cultural considerations, trade finance, logistics, relevant policies and regulations, and how to develop an international business plan. It discusses topics such as global supply chains, trade in services, high and low context cultures, business ethics, and transportation modes. The document aims to equip readers with foundational knowledge for understanding and engaging in global commerce.
Conventional explanatory variables and bilateral trade for African countries ...Omegal Mahabeer
The document summarizes the structure and key points of a presentation on conventional explanatory variables and bilateral trade for African countries from 2000 to 2005. The presentation includes an introduction discussing the topic and research question. It reviews literature on factors that influence bilateral trade, including common language, GDP, and religious diversity. The methodology section outlines the regression analysis of explanatory variables against bilateral trade data for 20 African countries in 2000 and 2005. The results section analyzes trends, country profiles, and regression outputs. Finally, the conclusion discusses the impact of variables like GDP, population, and religious diversity on bilateral trade and the overall conclusion.
International trade occurs when countries exchange goods and services. It benefits countries by allowing them to specialize in producing goods where they have lower costs or a comparative advantage. This makes resources more efficiently used globally. International trade takes place as countries have differences in climate, resources, labor, and capital that provide opportunities for specialization. When a country can produce a good at a lower price than another, both countries benefit through trade. The main benefits of international trade are comparative advantage, economies of scale, increased competition, transfer of technology, and more jobs.
Study of International Business Articles.
Part 1: Essential of International Business.
Part 2: Theories applied to International Business.
Part 3: Bargaining Approach and Resources.
Part 4: International Business Phenomena.
Part 5: Internalization.
Part 6: Competitive advantages.
Ppt 01 introduction to international businessPadmini Agrawal
This document provides an introduction to international business. It defines international business as economic transactions that occur across national boundaries between two countries. It discusses several theories of international trade and factors that influence international business such as different legal, political, and social environments between countries. The document also lists assignments for students and references for further reading on international business.
Call for papers: Special Issue on Acquisitions and International Joint Ventur...Nnamdi Raymond Oguji (PhD)
This document calls for papers for a special issue on market entry strategies of foreign firms into Africa, focusing on acquisitions and international joint ventures. It provides background on the limited existing research on foreign market entry into Africa and calls for more studies exploring various aspects of acquisitions and joint ventures in the African context. Specifically, it seeks papers that analyze motives, partner selection, ownership strategies, management, cultural and performance issues related to acquisitions and international joint ventures in Africa.
The document discusses international strategy and provides frameworks for assessing internationalization potential, sources of competitive advantage, types of international strategies, market selection, entry modes, performance impacts, and subsidiary roles. Key factors in internationalization include drivers of globalization, Porter's Diamond model of national advantages, and the four main international strategies. Markets should be evaluated based on attractiveness, distance, and retaliation risk. Common entry modes are exporting, licensing, joint ventures, and foreign direct investment. Internationalization may follow an inverted U-shape performance relationship.
1 2 introduction of international business environmentUrvashi Dwivedi
The document discusses key concepts related to international business environments including domestic versus international business, liberalization, privatization, and globalization. It provides definitions and explanations of international business, international trade, international marketing, international investments, and global business. It also compares differences between domestic and international business environments and discusses reasons for international business expansion.
1) The document provides notes on World War 1 on the Eastern Front and American involvement. It discusses topics like the Ottoman Empire and its role in the war, the failed British attack on Gallipoli, and the Armenian genocide.
2) It also covers Russia's role in the war, including their high casualty rates, mass starvation and riots. It mentions Vladimir Lenin and Germany sending him to Russia to spark revolution.
3) Additionally, it summarizes America's entry into the war in 1917 and President Woodrow Wilson's "Fourteen Points" that outlined his vision for peace after the war and the creation of a League of Nations.
This document proposes an improved thresholding method for denoising electrocardiogram (ECG) signals corrupted by noise. The method involves:
1) Decomposing the noisy ECG signal using discrete wavelet transform into approximation and detail coefficients.
2) Applying thresholding to the detail coefficients to estimate the wavelet coefficients. The threshold value is chosen based on the level and variance of the noise.
3) The improved thresholding method estimates coefficients in a way that ensures continuity and avoids oscillations, while retaining characteristics of the original ECG signal like amplitude of R waves. Experimental results show it performs better than traditional hard and soft thresholding methods.
2 el consejo técnico escolar, una ocasión para el desarrollo profesional docenteRoberto Carlos Vega Monroy
El documento presenta la guía "El Consejo Técnico Escolar: una ocasión para el desarrollo profesional docente y la mejora de la escuela". El Consejo Técnico Escolar (CTE) es un espacio para el análisis, la deliberación y la toma de decisiones sobre los asuntos educativos de las escuelas. El CTE constituye una oportunidad para el desarrollo profesional de los maestros y la mejora de la escuela. La guía proporciona orientaciones para la organización y funcionamiento del CTE
Situated Cognition, the Immersive Learning Environment & Backwards Designbjtalboys
This document discusses situated cognition theory, immersive learning environments, and backward design. [1] Situated cognition proposes that learning occurs through authentic activities and tools within communities of practice. [2] An immersive learning environment embeds learning in relevant contexts to foster active, social, and experiential learning. [3] Backward design, created by Wiggins and McTighe, involves defining learning goals and assessments before planning instruction so that lessons help students achieve deep understanding.
Este proyecto investiga los efectos de los productos cosméticos artificiales en la salud de la piel. Se aplicó una encuesta a estudiantes para conocer su uso de maquillaje y su interés en alternativas naturales. Los resultados mostraron que el maquillaje causa daños a la piel pero aún es ampliamente usado. El proyecto propone investigar plantas que puedan usarse para cuidar la piel de manera natural.
El documento presenta un resumen de la filosofía a través de las distintas épocas, desde la antigua hasta la contemporánea. Define la filosofía como el estudio de problemas fundamentales sobre la existencia, el conocimiento y la verdad. Describe las principales épocas de la filosofía como la antigua, medieval, moderna y contemporánea, y destaca a filósofos clave como Aristóteles, Sócrates, Descartes y Kant.
1) The document discusses sustainable design and chemical engineering, providing tools and guidance to help organizations build sustainability into their innovation processes.
2) It introduces the concept of life cycle thinking and analyzing the environmental impacts across a product's entire life cycle from raw materials to end of life.
3) Tools like life cycle assessment (LCA) are presented to help identify hotspots where the greatest environmental impacts occur in order to focus sustainability efforts.
Skeletal cartilage contains no blood vessels or nerves and is surrounded by perichondrium. There are three main types of cartilage - hyaline, elastic, and fibrocartilage. Hyaline cartilage provides support and flexibility and is the most abundant type found in areas like joints. Cartilage grows through appositional growth on the outside and interstitial growth on the inside. During aging or injury, cartilage can calcify and turn to bone through endochondral ossification.
El documento describe los sistemas UMTS (Universal Mobile Telecommunications System) de tercera generación. Explica que UMTS utiliza la tecnología W-CDMA con anchos de banda de 5 MHz, permite velocidades de hasta 2 Mbps, y ofrece una amplia gama de servicios de voz, datos y multimedia. También describe la arquitectura de UMTS, incluyendo la red de acceso radio UTRAN, el núcleo de red central CN, y la independencia entre la capa de acceso y la capa de no acceso.
Este documento trata sobre el Congreso de Ciencias y Tecnologías Ambientales y su objetivo de promover la sostenibilidad de la vida rural. El congreso busca fomentar un diálogo científico que mejore las condiciones de vida de las personas de manera pacífica y colectiva. Además, el documento presenta estadísticas sobre la población mundial, latinoamericana y colombiana, así como datos sobre la deforestación en Colombia y la necesidad de tomar medidas para proteger los bosques y recursos naturales.
El documento explica cómo se calcula la compensación por feriado (vacaciones) cuando un trabajador deja la empresa antes de completar un año de servicio. Indica que la ley prohíbe compensar el feriado en dinero excepto en dos casos: cuando el trabajador deja la empresa habiendo cumplido los requisitos para el feriado, o cuando el contrato termina antes de un año de servicio. En estos casos, el cálculo se hace dividiendo los días de feriado por los meses del año para obtener los días a compensar por mes trabajado,
Shrm us travel-vacation-benefits-workplace-impactshrm
HR professionals believe that taking vacation is important for employees. Most think it is extremely or very important for performance (94%), morale (92%), wellness (92%), culture (90%), and productivity (90%). Organizations commonly provide 11-15 paid vacation days annually but many employees do not use all their days. HR professionals agree employees who take more vacation have higher job satisfaction, performance, and productivity than those taking less time off.
The document discusses strategic planning and marketing plans. It covers 10 learning outcomes related to strategic planning, including understanding the importance of strategic marketing and marketing plans, developing business mission statements, setting objectives, conducting situation analyses, identifying competitive advantages, discussing strategic alternatives and target markets, describing marketing mix elements, and explaining the need for implementation, evaluation and control of marketing plans.
Valeo Refrigerant Gas 2012-2013 poster 955601Hugo Vallet
Valeo Refrigerant Gas 2012-2013 poster 955601
As one of the world's leader in A/C system manufacturing, Valeo masters the O.E. technical expertise of its products and proposes a complete Air Conditioning loop offer.
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As an A/C expert, Valeo manufactures also its Cabin Air Filters. With the aim to preserve the cleanness of the air in addition Valeo implemented the Air Quality concept based on:
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This Refrigerant Gas poster will allow you to find the type of oil and the quantity you need to put in the mains vehicles. Easy to use, it will be perfect for the maintenance of A/C systems. It can be completed by the full version of the database, with the Valeo Refrigerant Gas catalogue 2012-2013 955600.
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Valeo, automotive technology, naturally
Estos son algunos juegos que se juegan en la región sur de Jalisco. Cada diapositiva lleva algunas ligas que conducen a sitios relacionados con los juegos infantiles
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OneLegacy is a non-profit dedicated to organ and tissue donation in LA. It organizes the annual Donate Life Run/Walk at California State University, Fullerton to inspire donation. However, few students attend. OneLegacy plans to form a student club to increase campus exposure through flyers, social media, and the student newspaper to educate more young people and increase student participation in the run/walk.
Este documento describe diferentes posiciones y movimientos de pacientes en una cama de hospital. Incluye instrucciones para colocar a un paciente en posiciones como Fowler, Semi-Fowler y decúbito dorsal, así como procedimientos para mover a un paciente dentro de la cama o transferirlo a una silla de ruedas. El objetivo es apoyar tratamientos y mantener el equilibrio fisiológico del paciente.
The document discusses ethical issues related to information system design and use. It begins with an introduction to information ethics and some examples of unethical IS uses. It then covers motivation for social ethics, importance and scope of information systems, key ethical challenges, and comparisons between privacy laws in Europe and the US. The document also discusses findings around power of information and need for ethical decisions. It concludes that new technologies require reconsidering standards of conduct regarding information use.
Positive self-improvement involves striving for personal goals that give satisfaction and make life meaningful. Maintaining a positive attitude and believing in positive outcomes is important, as the law of attraction teaches that positive thoughts attract positive results. While past influences may have led someone to their current state, taking responsibility for one's life and focusing on personal growth through goal-setting, positive habits, patience and small consistent actions can help achieve positive self-improvement over time.
Interrelationship between culture and marketing strategyAlexander Decker
This document summarizes a study on the relationship between culture and marketing strategy. The study found that culture has a significant influence on the formulation of global marketing strategies. Marketers need to understand local cultures to design effective strategies that meet customer needs. However, the study did not conclusively determine whether strategies should be standardized across countries or localized for each market. In general, competitive strategies seem to be most successful when aligned with local cultures. The document provides details on the methodology used, which involved case studies of 10 large multinational companies in the Netherlands to understand how culture impacts their marketing approach.
This document summarizes the challenges American companies face regarding organizational culture when operating in Serbia. It discusses Hofstede's model of national cultural dimensions and how Serbian and US cultures differ based on this framework. Specifically, Serbian culture scores higher in power distance and uncertainty avoidance, while the US scores higher in individualism. The paper also examines types of organizational culture and notes that hierarchies are most common in Serbian companies, while adhocracy cultures are rare. Finally, it emphasizes the importance of understanding these cultural differences to help American businesses adjust their practices when operating abroad in Serbia.
CULTURAL DUE DILIGENCE AS COMPETITIVE ADVANTAGE IN CROSS-BORDER MERGERS AND A...Iulian Warter
This document discusses the importance of cultural due diligence in cross-border mergers and acquisitions. It notes that managing cultural differences is crucial for M&A success but is often overlooked. Cultural due diligence helps identify cultural factors that could impact integration and develop strategies to prevent conflicts. The document reviews how cultural clashes have undermined mergers and acquisitions in the past. It argues cultural due diligence is needed to understand risks and opportunities from differing national and corporate cultures during M&As.
CULTURAL DUE DILIGENCE AS COMPETITIVE ADVANTAGE IN CROSS-BORDER MERGERS AND A...Liviu Warter
This document discusses the importance of cultural due diligence in cross-border mergers and acquisitions. It begins by providing context on the rise of cross-border M&As and challenges of integrating different corporate and national cultures. It then discusses how cultural due diligence aims to identify cultural differences and similarities to understand intercultural risks and opportunities. The document argues that cultural due diligence influences post-M&A integration and performance, though there is lack of consensus on its exact process and depth. It provides examples of how cultural clashes negatively impacted past deals and underscores managing cultural differences as crucial for M&A success.
This document provides a summary of a World Bank policy research working paper on global value chains. The paper aims to provide a framework and tools to measure countries' performance in global value chains and provide guidance on how countries can join, maintain participation in, and move up global value chains. Global value chains have become an important source of opportunities for trade, competitiveness, and development. The paper analyzes what global value chains are, why they are important, and provides context on how production has increasingly fragmented across borders through various organizational models like outsourcing and offshoring.
Problems and Perspectives in Management, Volume 12, Issue 1, 2.docxbriancrawford30935
This document summarizes a study that examined the influence of culture on marketing communications between South African and German businesses. The study used a quantitative survey and qualitative interviews. Key findings included:
1) Critical cultural factors influencing marketing communications included language, value systems, religion, education levels, attitudes towards time, and communication and messaging styles.
2) South African value systems place importance on trust and price of products, while Germans emphasize quality over price.
3) Religious background has some influence on perceptions of marketing messages due to South Africa's cultural diversity, but religion does not strongly impact business communications with German partners.
4) Educational levels differ between the countries and marketing messages may need adaptation when targeting the general
This document discusses factors that affect the cultural adjustment of expatriates working in foreign countries. It proposes that three variables are particularly important for cultural adjustment: cultural training, international experience, and cultural distance. Cultural training can help expatriates learn about and adjust to new cultures. International experience exposes expatriates to different cultures, making adjustment easier. Greater cultural distance between an expatriate's home and host countries makes adjustment more difficult, as there are larger differences to adapt to. The document reviews previous research on these topics and develops a theoretical model exploring the relationships between these three variables and cultural adjustment.
IMPLICATIONS OF M&AS FOR BANKING INDUSTRY. FROM CULTURAL FIT TO CULTURAL CLASHESIulian Warter
The document discusses the implications of mergers and acquisitions (M&As) for the banking industry, with a focus on cultural aspects. It notes that while traditional M&A planning focuses on legal and financial factors, cultural differences are often overlooked but can critically impact integration success rates. The biggest challenge is balancing cultural integration with maintaining diversity. Cultural clashes within merged banks have contributed to M&A failures. The document analyzes how intercultural issues affect outcomes of international banking M&As.
IMPLICATIONS OF M&AS FOR BANKING INDUSTRY. FROM CULTURAL FIT TO CULTURAL CLASHESLiviu Warter
Cultural differences play a key role in determining the success or failure of mergers and acquisitions (M&As) in the banking industry. While traditional M&A planning focuses on financial and legal aspects, cultural factors can significantly impact achieving integration targets and realizing synergies. The document discusses how cultural clashes have derailed some large M&A deals in banking. It emphasizes the need to conduct cultural due diligence during mergers to understand differences that may hinder integration, and to develop strategies to mitigate cultural risks that could threaten the M&A objectives. Managing cultural issues effectively, such as through clear communication during integration, is essential to leveraging cultural diversity as an asset rather than a liability in banking M&As.
This document summarizes a paper presented at the I-KNOW '04 conference on cross-border knowledge transfer in international strategic alliances. It discusses how cultural variations and the type of international collaboration can influence the effectiveness of knowledge transfer. The document reviews existing literature on absorptive capacity and knowledge transfer in strategic alliances. It then examines how national cultural dimensions like individualism vs collectivism and the typology of cultural contexts (monolithic, pluricultural, multicultural) can impact partners' cooperation attitudes and the knowledge transfer process.
CCM17,2154Cross Cultural Management AnInternation.docxcravennichole326
CCM
17,2
154
Cross Cultural Management: An
International Journal
Vol. 17 No. 2, 2010
pp. 154-169
# Emerald Group Publishing Limited
1352-7606
DOI 10.1108/13527601011038723
Received February 2009
Revised June 2009
Accepted August 2009
Interpretive schemes in
cross-national alliances
Managing conflicts and discrepancies
T.K. Das
Department of Management, Zicklin School of Business, Baruch College,
City University of New York, New York, USA, and
Rajesh Kumar
Division of Strategy, Nottingham Business School,
University of Nottingham, Nottingham, UK
Abstract
Purpose – The purpose of this paper is to propose a framework for understanding how alliance partners
interpret alliance functioning and how these interpretations shape their subsequent behaviors. Also, to
discuss how interpretive schemes in cross-national strategic alliances impact upon the management of the
problems arising from the cultural conflicts and discrepancies inherent in such alliances.
Design/methodology/approach – Proceeding from the notion that interpretive schemes have
important implications for the evolution of cross-national alliances, the paper describes the two
fundamental interpretive schemes that relate to sensemaking – that of sensemaking of and in chaos, and
examines how an appreciation of these interpretive schemes enable us to better manage cultural conflicts
and discrepancies that inevitably arise in cross-national alliances.
Findings – The framework makes clear that the two types of interpretive schemes ! ‘‘sensemaking of
chaos’’ and ‘‘sensemaking in chaos’’ ! need to be appreciated as interpretive frames that are present
among the alliance managers to effectively interact and influence partner firms.
Practical implications – Briefly, the two types of the interpretive schemes call for different strategies
for developing them. Alliance partners embedded in different national cultures rely on interpretive
schemes to make sense of the conflicts and discrepancies that emerge in cross-national alliances.
Originality/value – The paper responds to the need of managers with alliance responsibilities for a
framework to help develop the most effective ways of managing interpretive schemes in alliances for
productive interactions and performance.
Keywords Conflict management, Strategic alliances, Cross-cultural management
Paper type Conceptual paper
Introduction
In this article we analyze the impact of national culture on the dynamics of cross-
national strategic alliances. In recent years alliances have become an important tool in
a firm’s competitive strategy. A large number of these alliances bring together
companies that have been exposed to different institutional environments. These
differences are particularly salient in alliances that have been formed between Western
and Asian companies. In a landmark study, Hamel (1991) observed that Asian firms
out-learned their Western counterparts, and, in the process, strengthened their
competitive position. A classic ex ...
Culture is a social value that helps coorporations together. • Culture functions as a semblance and control mechanism, guiding and shaping employee attitudes and behaviors. Culture improves company dedication and boosts employee behavior consistency.
The survey found that:
- German companies have less culturally diverse workforces than international companies.
- Cultural diversity management is less widespread in German companies compared to European and US companies.
- Companies see benefits of cultural diversity in dimensions of customer orientation, international success, and conflict reduction; these benefits are more recognized by international companies than German companies.
INTERCULTURAL NEGOTIATION IN MERGERS AND ACQUISITIONS. THE INTEGRATION OF THE...Liviu Warter
This document summarizes a research article about intercultural negotiation in mergers and acquisitions. It discusses how culture impacts negotiation between parties in cross-border M&As. Culture can influence negotiation at the cognitive, belief/value, and identity levels. There are many factors that influence the negotiation process, including structural, strategic, and cultural factors. Intercultural negotiation aims to clarify goals, define relationships, communicate issues, develop options, and reach agreements between different cultures. The integration of cultural dimensions into negotiation is complex as culture incorporates many components.
INTERCULTURAL NEGOTIATION IN MERGERS AND ACQUISITIONS. THE INTEGRATION OF THE...Iulian Warter
This document summarizes a research article about intercultural negotiation in mergers and acquisitions. It discusses how culture impacts negotiation between parties in cross-border M&As. Culture can influence negotiation at the cognitive, belief/value, and identity levels. There are many factors that influence the negotiation process, including structural, strategic, and cultural factors. Intercultural negotiation aims to clarify goals, define relationships, communicate issues, develop options, and reach agreements between different cultures. The integration of cultural dimensions into negotiation is complex as culture incorporates many components.
This document discusses effective training methods for cross-cultural collaboration and global leadership. It analyzes existing literature and case studies from Sweden, Mexico, and Morocco. The key findings are that experiential learning through real-world experiences works best to develop these skills. Further research is needed to quantitatively measure the results of cross-cultural training programs and their implementation. The document provides background on the increased need for this type of training due to globalization and business trends. It also discusses some of the challenges of cross-cultural collaboration.
Diversity Programs at the WorkplaceTeam CRES35110.docxjacksnathalie
Diversity Programs at the Workplace
Team C
RES/351
10/16/13
REZA MAHALLATI
Running head: PREPARING TO CONDUCT BUSINESS RESEARCH: PART 1
1
PREPARING TO CONDUCT BUSINESS RESEARCH: PART 1
5
Diversity Programs at the Workplace
Abstract
The contemporary idea on diversity extends the scope and recognizes diversity as an array of items characterized by variances and similarities. Numerous aspects such as escalating arrival of immigrants, strategic alliances among firms, and the growing rate of globalization of businesses has considerably influenced dynamics in diversity (Bohlander, George & Snell, 2007). The purpose of this research proposal is to look at some of the diversity issues in my organization. The proposal highlights various elements such as purpose, the research questions, hypotheses, ethical considerations and other variables. In addition, the proposal will highlight significance, scope, magnitude and feasibility of exploring diversity programs at my workplace.
Introduction
Diversity is the montage of persons who express an array of backgrounds, techniques, viewpoints, and principles as resources to organizations with which they share (Rasmussen, 1996). Reasons contributing to the rise in diversity include the influx of immigrants, strategic alliances, and skills search, demographic dynamics and the rising globalization of businesses. Divergences among individuals and systems shape an organization’s ability to establish broad perspectives and to address emerging business challenges (Talbot-Allen, 1995). Because of the emerging developments in diversity, firms are striving to align programs that embrace these developments and how they can successfully exploit diversity for competitive advantage (Wentling & Palma-Rivas, 1998). Latest researches by Teradata Corporation suggest that an average worker stays in a company for approximately 3.6 years and the rate is expected to decline. This high turnover will raise diversity through newly hired workers.
Purpose of study
The intention of this study is to search for an appreciation and understanding on the development of diversity programs and among companies that operate domestically and those with international presence. In the recent years, the number of companies seeking introduction of diversity programs has risen considerably even though the numbers vary among various organizations (Fine, Johnson, & Ryan, 1990). The study will center on selected organizations that have operations in the local market and others that have international presence in the last decade. This study will allow us to identify the existing trends in diversity components at the two sets of organizations with the intension of developing suitable programs to address any findings.
Context of study
Until recently, the concept of diversity had not taken a prominent position among the critical issues facing organizational management. Recent studies demonstrate that more organizations are considering dive ...
Understanding International Business in the Context of Cultural LensesIOSR Journals
This paper is based on the premise that for business organizations to succeed in our globalized, competitive international environment without a „globalized‟ culture, business managers need to have a sound and practical knowledge of cross boarder cultures. Believing, as Dewey (1938) long ago recognized that “there is nothing more practical than a good theory”, the paper identified from the professional literature and discussed seven theories of culture. The understanding of these cultural models would help the business manager to become more intelligent, culturally more sensitive to cultural differences, develop cultural competence and became more effective and efficient as he/she works to overcome cultural complexities that can negatively affect business and business profits.
This document provides an executive summary of a thesis that examines what institutional factors contribute to entrepreneurial success. The thesis proposes seven hypotheses about how increased economic development, financial development, taxes/government spending, property rights, immigration, cultural values, population levels/density, innovation, and global connectedness relate positively to entrepreneurial success. Regression analyses will be used to test these hypotheses and determine which institutional factors most influence whether entrepreneurs become highly successful.
Communication essay sample from assignmentsupport.com essay writing services https://writeessayuk.com/
1. Intercultural communication is important for international marketing success but can pose challenges if cultural differences are not understood and addressed.
2. Marketing supervisors play a key role in developing cultural awareness and ensuring effective intercultural communication within international marketing teams and with local customers.
3. Common issues that can arise include language barriers, differences in interaction and non-verbal communication styles, and lack of understanding of cultural values, norms and business practices.
Similar to Managing Cultural Integration in Cross-Border Mergers and Acquisitions (20)
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Managing Cultural Integration in Cross-Border Mergers and Acquisitions
1. MANAGING CULTURAL
INTEGRATION IN CROSS-BORDER
MERGERS AND ACQUISITIONS
Daniel R. Denison, Bryan Adkins and
Ashley M. Guidroz
ABSTRACT
Cross-border M&A has become one of the leading approaches for firms to
gain access to global markets. Yet there has been little progress in the
research literature exploring the role that culture may play in the success
of these ventures. Poor culture-fit has often been cited as one reason why
M&A has not produced the outcomes organizations hoped for (Cart-
wright & Schoenberg, 2006). Cross-border M&A has the added chal-
lenges of having to deal with both national and organizational culture
differences. In this chapter we review the literature on cultural integration
in cross-border M&A and provide a framework designed to help manage
the integration process throughout the M&A lifecycle. This framework
presents culture assessment and integration as a crucial component to
reducing poor culture-fit as a barrier to M&A success.
Mergers and acquisitions (M&A) have become a central part of most
corporate growth strategies, and an increasing portion of that M&A activity
now spans national borders. Indeed, beyond a certain scale, one might say
that all M&A is now cross-border M&A. For example, even a merger
Advances in Global Leadership, Volume 6, 95–115
Copyright r 2011 by Emerald Group Publishing Limited
All rights of reproduction in any form reserved
ISSN: 1535-1203/doi:10.1108/S1535-1203(2011)0000006008
95
2. 96 DANIEL R. DENISON ET AL.
between two large American corporations such as HP and EDS requires an
integration plan that affects operations in many countries. Furthermore, the
success of the merger depends not only on the integration of operations at
the center where the national culture is presumably the same, but also on the
integration process in many locations around the world where the national
cultures differ from that in the center. Despite this trend, relatively little
research has focused directly on cross-border M&A, and even less has
addressed the topic of cultural integration in cross-border deals.
This chapter explores these issues by first reviewing the existing literature
on cross-border M&A, and then presenting a framework that highlights
some of the important dynamics in the cultural integration process. This
analysis is then used to pose both a set of research questions for future study
and a set of practical recommendations for managing cultural integration in
future cross-border mergers.
UNDERSTANDING CROSS-BORDER
MERGERS AND ACQUISITIONS
Cross-border mergers and acquisitions (M&A) are a large component of
global foreign direct investment (FDI) activities (United Nations Con-
ference on Trade and Development [UNCTAD], 2006). Cross-border
M&As are often used as a means for gaining entry into a foreign market,
a method for engaging in a dynamic learning process, or a value-creating
strategy (Shimizu, Hitt, Vaidyanath, & Pisanto, 2004). Although there are
many similarities between cross-border M&As and within-border M&As,
the international scope poses additional challenges to the cultural
integration process (Hofstede, 1980; Shimizu et al., 2004). Acquiring
companies outside of one’s own country carries what Zaheer (1995) called
a ‘‘liability of foreignness’’ – the costs incurred by a firm operating in a
foreign market in addition to what a local firm would incur. Cross-border
M&As also have the added challenge of double-layered acculturation where
national culture must also be integrated in addition to organizational
culture (Barkema, Bell, & Pennings, 1996). Despite these challenges, cross-
border M&As continue to be a popular business strategy. The financial
value of M&A activity has steadily increased from the late 20th century and
into the present decade. Global FDI activity peaked at US $1.7 trillion
during the fiscal year of 2008, with cross-border M&As accounting for US
$707 billion (UNCTAD, 2010).
3. Managing Cultural Integration 97
One challenge inherent within the M&A literature that we reviewed for this
chapter is the fragmentation of the research across disciplines. Researchers in
finance, strategy, organizational behavior, and human resources have all
studied M&A from different perspectives. Each field has produced a
considerable amount of research delineating the factors that lead to the
success or failure of M&A. Poor culture-fit has been an oft-cited reason by
researchers from many different disciplines, albeit without much statistical
evidence (Cartwright & Schoenberg, 2006). In recent years, researchers have
begun to develop more comprehensive assessments of the role of organiza-
tional culture in the M&A process (Cartwright & Schoenberg, 2006; Stahl &
Voigt, 2008). One review concludes that the study of culture in M&A is still in
its infancy and that current research is too inconsistent to support clear
conclusions about the positive or negative role that culture can play during
M&A (Teerikangas & Very, 2006). These authors make several propositions
about the culture literature in the M&A field and conclude that (i) culture is a
multilevel variable that includes organizational, industrial, functional,
national, occupational, and professional cultures; (ii) these cultures are
interconnected and present a dynamic challenge to organizations in the M&A
process; and (iii) the quality of the firm’s integration strategy will influence the
effect that culture has on firm performance (Teerikangas & Very, 2006). They
conclude their paper stating that ‘‘instead of asking if ‘yes or no’ cultural
differences impact the performance of M&A, researchers should focus on
‘how’ do they impact the performance of M&A’’ (Teerikangas & Very, 2006,
p. 46). We agree that culture does play a key role in the M&A process and
that more research needs to be conducted to understand ‘‘how’’ cultural
integration effects M&A performance. We also contend that the outcomes
could be improved if culture is positioned as a central component of the
M&A process from the beginning.
To help illustrate the multilevel nature of the cross-border cultural
integration process, consider the example of the merger between Finnish
Merita Bank and Swedish Nordbanken described by Piekkari, Vaara,
Tienari, and Santti (2005). This merger experienced many cultural
integration challenges due to the decision to adopt Swedish as the corporate
language. This decision had a disintegrating and fragmenting effect among
employees, particularly because it disadvantaged those Finnish employees
who did not speak Swedish. This decision negatively impacted performance
appraisals, language training and management development, and career
paths and promotion of native Finnish speaking employees who could not
operate as well in the Swedish-language environment (Piekkari et al., 2005).
The authors write that the ‘‘chosen corporate language is likely to send an
4. 98 DANIEL R. DENISON ET AL.
implicit symbolic message regarding the division of power between the
merging parties’’ (Piekkari et al., 2005, p. 331). In this situation, the decision
to adopt Swedish as the corporate language sent an implicit signal that the
needs of Finnish employees were not at the forefront of managements’
attention. This also struck a deep chord with Finnish employees, since
Finland was ruled by Sweden for nearly 500 years, up until 1809; and, thus
there is a long history of the Swedish business elite requiring Finns to speak
Swedish in order to survive economically.
The Finnish–Swedish merger also brings to mind the importance of
communication with employees, particularly those employed at lower levels
or within front-line positions (Budhwar, Varma, Katou, & Narayan, 2009).
Pioch (2007) and Larsson and Lubatkin’s (2001) case studies of United
States, United Kingdom, and Swedish cross-border M&As highlight the
importance of low-level employee integration. As an example, Pioch (2007)
discovered that a management-imposed corporate culture was not well-
received by all employees within a UK-based retailer that was acquired by a
larger international corporation. Employees consented to the company
values, but overall cultural integration was not achieved (Pioch, 2007).
Larsson and Lubatkin (2001) also observed similar findings in their study of
50 cross-border and domestic M&As in the United States and Sweden. They
stress that integration should include a balance of company sponsored
socialization activities, such as introduction programs, training, cross visits,
retreats, and celebrations, as well as allowing for employee autonomy to
create a joint organizational culture (Larsson & Lubatkin, 2001).
Several additional themes emerge from the research literature that are of
particular interest for cross-border M&A. These themes include (i) the firm’s
previous experience, in M&A activity in general, and in their previous
business activity within the target country; (ii) the similarity in national
culture between the host and target company; and (iii) the integration
strategies adopted during the M&A process. These variables can all impact
the success of cross-border M&As.
Experience Counts
Researchers have shown that both prior experience in M&A activity and
prior experience within the target country can increase the frequency and
success of subsequent cross-border M&A activities (Barkema et al., 1996;
Finkelstein & Haleblian, 2002; Haleblian & Finkelstein, 1999; Vermeulen &
Barkema, 2001; Very & Schweiger, 2001). Using organizational learning
5. Managing Cultural Integration 99
theory as a framework (Levitt & March, 1988), Collins, Holcomb, Certo,
Hitt, and Lester (2009) reasoned that as firms engage in M&A activity,
either domestically or internationally, they learn a great deal about what is
needed to make an M&A successful and use that experience to pursue
additional international M&A targets. Using a sample of Fortune 500 firms,
they found that prior domestic and international acquisitions influenced the
likelihood of acquisitions in foreign markets by US-based firms. They also
found that prior international experience and prior experience within the
target country were stronger predictors of subsequent international
acquisitions, generally, and acquisitions within a target country, specifically
(Collins et al., 2009). Similar patterns have also been observed in the
Chinese business market; equity joint ventures (EJVs), which were once the
primary vehicle for foreign firms to enter the Chinese market, have
decreased over the years, giving rise to more M&A activity (Xia, Tan, &
Tan, 2008). Nonetheless, firms entering into EJVs in China learned a great
deal about how to conduct business within that marketplace, making it
more likely that firms would engage in M&As for their subsequent business
ventures. Thus, previous M&A experience prepares firms for the challenges
involved in making a merger work. Firms that already have specific
experience within a target country will already be familiar with the legal and
regulatory requirements of that country, for example, and will not be held
back by their learning curve.
Which is More Important: Similarities or Differences?
A second line of research unique to cross-border M&As in particular is
understanding the effect of differences in national culture. Cultural
familiarity theory argues that firms are less likely to invest in organizations
in culturally distant countries, and subsequently have poorer performance
postintegration (Lee, Shenkar, & Li, 2008; Li & Guisinger, 1991; Shenkar,
2001). The resource-based view of the firm, in contrast, hypothesizes exactly
the opposite: that more culturally distant M&As will actually be more
successful because the cultural differences enhance potential synergies
between the two partners (Chakrabarti, Mukherjee, & Jayaraman, 2009).
The research on this issue, however, has been inconclusive. Datta and Puia
(1995) found that cultural distance had a negative effect on subsequent
shareholder wealth of the acquiring firm, whereas Chakrabarti and
colleagues (2009) found a positive effect of cultural distance on firm
performance 36 months after integration. Slangen (2006) argues that it is not
6. 100 DANIEL R. DENISON ET AL.
the distance between the cultures that impacts performance but the level of
integration that the firms seek to achieve. For example, using a sample of
Dutch acquisitions across 30 countries, Slangen (2006) found that higher
levels of integration negatively impacted firm performance as cultural
distance increased.
Understanding the Choices for Integration Strategy
This research on the cultural distance between countries reminds us that these
cultural differences need to be viewed in the context of a more general
approach to integration. For this, we look to the classic typology developed
by Mirvis and Marks (1992). They viewed integration in terms of the degree
of change required by the acquiring firm and the acquired firm. This typology
distinguishes ‘‘stand alone’’ mergers that require little change by either firm,
from ‘‘absorption’’ mergers that require fundamental change in the acquired
firm, but little change in the acquiring firm, from ‘‘reverse acquisitions’’ that
require a high degree of change in the acquiring firm as they adopt the ways of
the acquired firm. Finally, they distinguish these from ‘‘best of both’’ mergers
requiring substantial changes in both firms, and ‘‘transformations’’ that
require more fundamental change for both firms (Fig. 1).
Mirvis and Marks go on to elaborate the options for integration outlined
in Fig. 2. As two firms go from being separate entities in a holding company
High Absorption Transformation
Degree of
Change in Best
Acquired of Both
Company
Reverse
Low Stand Alone Acquisition
Low High
Degree of Change in Acquiring Company
Fig. 1. Different Types of Mergers. Source: Mirvis and Marks (1992).
7. Managing Cultural Integration 101
1 2 3 4 5 6 7 8 9 10
none moderate full
Structure Separate Managed Merged and
Holding Subsidiary Consolidated
Strategic Operational
Control Control
Areas of Integration
Corporate Production or Companywide
Functions Marketing Integration
Management Implications
Decentralized Centralized Integrated Operations
Planning & Monitoring Planning & Monitoring and Controls
Autonomy of Coordination of Cooperation of
Line Management Line Management Line Management
Fig. 2. How Much Integration? Source: Mirvis and Marks (1992).
with little interdependence to being fully merged and consolidated, they
have series of intermediate choices.
Like the typology in Fig. 1, this framework helps to clarify two
points: First, this framework makes it clear that there are many different
approaches to choose in the integration process. The degree of integration
and the speed of integration are, in most cases, well within the control of
the leaders of the acquiring firm. The biggest problems often come
when the choices, and their consequences, are not understood clearly from
the outset. Mergers that began as ‘‘absorptions’’ but turned into ‘‘reverse
mergers’’ as they unfolded are likely to encounter problems. Or, mergers
that were presented in the beginning as a ‘‘merger of equals’’ in order to
disguise the fact that one (or both) firms was trying to domi-
nate have generated some spectacular failures. Making a clear choice,
with full understanding of the consequences, and then clearly communi-
cating this throughout the organization seems to be a prerequisite for
success.
Second, the Mirvis and Marks framework also poses a key dilemma in
planning the integration process in any merger: Integration requires a lot of
resources. But, at the same time, the creation of new dynamic capabilities
requires integration. Thus, combining two organizations into one holding
8. 102 DANIEL R. DENISON ET AL.
company requires minimal resources. But, in turn, it can also not be expected
to generate any new dynamic capabilities. A full transformation with
integrated operational control has the potential to create many new dynamic
capabilities, but it will not be cheap!
This dilemma is compounded when a merger spans national boundaries.
The added complexity of national differences adds a third dimension of
cultural distance to the Mirvis and Marks matrix presented in Fig. 1 and
underscores the point that the quality and quantity of organizational
resources that can be devoted to integrating an acquisition will be a key
determinant of its success. How much complexity is the acquiring
organization capable of managing?
In addition to these basic integration strategy decisions, it is also important
to consider the integration process itself. Integration is a multistage process.
In the next section, we consider the role that organizational culture can play
during each of these stages, and how cross-border M&As in particular can
add both increased opportunity and increased complexity.
MANAGING THE CULTURAL INTEGRATION
PROCESS IN MERGERS AND ACQUISITIONS
A number of approaches have been proposed for managing postmerger
integration across borders. Quah and Young (2005), for example, prescribe
a five-year timeline that divides postacquisition activity into four phases,
beginning with very slow absorption for the first year postacquisition and
accelerating until the two firms are fully integrated. Similarly, our model in
Fig. 3 views integration as a multistage process in which organizational
culture plays an important role at each stage. Considering cultural issues
early in the M&A process can increase the likelihood of a positive outcome.
A crucial, and often overlooked first step, is to begin the M&A process with
an understanding of how M&A activity fits with the culture and growth
strategy of the organization. Beginning here ensures that cultural issues
remain on the table through the acquisition and integration process rather
than emerging toward the end when an integrated and unified organization
is desired.
Growth Strategy
The starting point in managing the cultural integration process is to consider
the role of M&A in the organization’s growth strategy. Researchers often
9. Managing Cultural Integration 103
Fig. 3. A Process for Cultural Integration in Mergers and Acquisitions.
consider the M&A event itself in isolation, rather than considering that the
merger may be just one part of a larger growth strategy (Barkema &
Schijven, 2008; Kusewitt, 1985; Salter & Weinhold, 1979). Thus, the key
to success is not to consider the merger in isolation, but rather to consider
the M&A activity within the broader context of the evolution of the
organization.
Culture is often not considered until later in the M&A process, once the
deal is complete. However, because ‘‘culture clashes’’ are often blamed for
the failure of M&As, it is important that organizations have a clear
understanding of their own culture at the beginning of this process when
M&A is a primary component of their growth strategy. Having insight into
the level of clarity and alignment that exists within one’s own firm regarding
10. 104 DANIEL R. DENISON ET AL.
mission and strategy, customer needs, internal processes, and expected
behaviors and practices, for example, allows for a better assessment of
cultural fit as potential targets are considered. This activity can also be
beneficial in identifying the cultural traits that the organization would like to
retain or develop moving forward, as they seek out organizations that might
fit within their growth strategy. Assessing the organization’s cross-border
capabilities for managing cultural complexity is a particularly important
part of this process. A broad-based assessment of the knowledge and
capabilities required to move effectively into a new region can help identify
both opportunities and limitations.
Assessing a firm’s existing culture as part of the growth strategy process
should also include an assessment of the capability of the leadership and
their ability to manage cultural complexity. Kavanagh and Ashkanasy
(2006) evaluated the effect of leadership and change management strategy
on M&A integration in three organizations and found that managers
responsible for driving the merger process were not equipped with the
necessary change management skills to ensure success. M&As are not
isolated business activities (Kusewitt, 1985; Salter & Weinhold, 1979), and
sophisticated change management skills are needed as well as a clearly
communicated vision from the leadership in the firm (Kavanagh &
Ashkanasy, 2006; Waldman & Javidan, 2009).
Henkel’s 2006 acquisition of Dial provides a helpful example of an
acquisition that fits in well with a carefully considered growth strategy that
took into consideration the cultural evolution of the corporation. Henkel,
the leading German consumer products firm, has been on a decade-long
transformation moving from a dominant German and European perspective
with a strong base in the chemical industry to a global consumer products
firm capable of managing brands that compete head-to-head with firms like
Unilever and Procter & Gamble. The $2.9 billion acquisition of the
American icon Dial was a key step in the globalization of their home care
and personal products businesses. This acquisition also gave Henkel a much
stronger base in North America, with 25% of their sales now coming from
the United States of America. In addition, this acquisition also gave greater
global exposure to many of the established Dial brands.
Potential Targets
When considering a range of potential M&A targets, a firm will typically
gather an array of data and information. Depending on the specific growth
11. Managing Cultural Integration 105
strategy an M&A target might support, that information may include
opportunities to quickly expand product lines or move into new geographies
or perhaps to eliminate a competitive threat. As information is collected
regarding the potential target’s operations, it is also important to consider
the expected degree of integration that the merger or acquisition will
require. Will it be a holding company that is allowed a great deal of
operating independence and thus less intensive cultural integration? Is it
being absorbed into the acquiring firm in a way that will require significant
change for the acquired firm? Which parts of the acquiring organization will
be most influenced by the acquisition? Will the merger or acquisition require
the transformation of the cultures of all firms involved?
Other factors to consider for the success of cross-border M&As include
the firm’s previous business experience outside the borders of their country.
Previous experience within a foreign environment, either through partner-
ships, joint ventures, or M&As, has been shown to increase the likelihood
and success of later M&A activity (Barkema et al., 1996; Finkelstein &
Haleblian, 2002; Haleblian & Finkelstein, 1999; Vermeulen & Barkema,
2001; Very & Schweiger, 2001). By the same token, the acquired firm’s
experience counts, too, both with regard to M&A in general, and in regard
to their experience with the national culture of the acquiring firm. Firms
with previous joint venture activity in China, for example, had already
moved up the learning curve on how to conduct business within that
country and were more likely to engage in successful M&A activity within
China for their subsequent business ventures (Xia et al., 2008). Identifying
potential targets might include, for example, compiling all of the foreign
locations the firm has worked within and evaluating which of those markets
would be best to target.
Due Diligence
During the due diligence period, a target firm has been identified and leaders
of the respective firms begin sharing financial and legal information to guide
the decision regarding the potential benefits and liabilities of the merger.
This is an opportune time to investigate the culture of the target organization
and identify similarities and differences between the two firms. During the due
diligence phase of Twentieth Century Advisors acquisition of Benham Capital
Management Group, for example, the two firms exchanged corporate values
statements that revealed that they both shared some of the same guiding
principles (Marks & Mirvis, 2001). This made the subsequent integration of
12. 106 DANIEL R. DENISON ET AL.
the two firms much easier as they already had shared perceptions on
corporate values and behavior. Thus, the due diligence phase is a critical stage
in the M&A process, and a time when cultural due diligence should be central
within the overall due diligence process.
Including human resource or organizational development experts with-
in the M&A team is crucial to ensuring that cultural assessment is not
overlooked (Marks & Mirvis, 2001). Harding and Rouse (2007) recommend
that all organizations take proactive steps to evaluate the culture of
organizations they are considering acquiring and suggest that M&A teams
either conduct interviews or use a cultural assessment tool to gather
information. Developing a detailed understanding of how the leaders and
employees in the firms develop strategies and goals, engage with the
marketplace, and reward behaviors will offer critical insights regarding the
potential synergies and areas of conflict that might arise during the cultural
integration effort. Due diligence with respect to the cross-border manage-
ment capabilities of both firms is particularly important at this stage.
As another example, during the due diligence phase of Dow Chemical’s
1999 acquisition of Union Carbide, the 25-person integration team did an
assessment of their perceptions of the culture of both organizations. They
also did a careful comparison of the perceptions of the Dow members of the
integration team with the Carbide members of the integration team. The
convergence of the perspectives of these two halves of the integration team
was taken as a clear indication that the integration team had reached a
consensus regarding the strengths and challenges of the two parts of their
future organization.
Cross-border acquisitions often have a way of turning from ‘‘absorption’’
to ‘‘reverse acquisition’’ in the acquired firm’s home country as the merger
unfolds. The view from HQ may regard ownership as the most important
aspect of control, or may see the adoption of global processes and
procedures as the most important objective, and may not appreciate the
realities of the business on the ground, and the importance of these activities
for building the corporation’s presence and brand in the new marketplace. It
is extremely important for these potential dynamics to be anticipated by the
integration team.
Cultural Integration
Larsson and Finkelstein’s (1999) case study research provides some of the
earliest documentation on the importance of postacquisition integration to
13. Managing Cultural Integration 107
the success of a merger. In their analysis, integration was found to be the
single most important predictor of synergy realization in the M&As they
studied. Interestingly enough, their findings seem to apply equally well to
both within-country and to cross-border mergers. They hypothesized that
cross-border M&As would negatively affect organizational integration,
positively impact the potential for combination in the merger, but increase
employee resistance. The results, however, showed no relationship between
cross-border M&As and increased employee resistance or a decrease in
organizational integration, but did show a positive relationship with
combination potential, a precursor to positive synergy. Thus, integration
seems equally important for both within-border and cross-border M&As,
but cross-border M&As do seem to provide increased opportunities for
expanding new market access or promoting complementary globalization
synergies. As mentioned previously, the decision to adopt Swedish as the
company language in the Merita Bank–Nordbanken merger had long-
lasting effects on Finnish employees (Piekkari et al., 2005). But national
culture does not always have to be a barrier to integration. Slangen (2006)
argues that national culture only hinders M&A success when acquisition
companies are too tightly integrated into the acquirer. More research is
needed in this area, but the growth strategy of the firm will largely influence
the integration strategy that is adopted.
There are a number of factors that can affect postacquisition integration.
Epstein (2004) suggests that successful integrations include five components:
a coherent integration strategy, a strong integration team, frequent
communication, speed in implementation, and measurement alignment
across all departments to gauge success. Provided that some culture data has
been collected during the due diligence phase, this information can be used
by leaders and integration teams to create clarity and alignment among the
employees regarding direction, processes, and expected behavior. Leader-
ship team alignment is also important to assure that common messages and
priorities are communicated, and that relationship-building activities and
role-clarity efforts are implemented. If the due diligence phase does not
include a detailed examination of the respective cultures, the period just
after closing and prior to the integration activities should be used to gather
important data about how the respective organizations operate. That data
highlights the differences and possible synergies of the firms and is used to
proactively facilitate the culture integration process.
As an example, Fig. 4 includes an analysis of our culture data from a
merger in the petrochemical industry.1 The acquiring firm, in this case, is
an American petrochemical firm that has acquired a German speciality
14. 108 DANIEL R. DENISON ET AL.
Fig. 4. Comparing Culture Data from the Two Firms.
chemical company. As these data show, these two firms had a highly
complementary set of strengths and challenges that posed a unique set of
risks and opportunities for the newly combined business unit. This analysis
also presents a classic contrast that highlights the innovation opportunities
available when a large, mature organization acquires a smaller, more
dynamic firm as a part of their growth strategy.
Unified Organization
In addition to the postmerger integration activities, research has shown that
employee identification with the consolidated organization is important for
M&A success (Creasy, Stull, & Peck, 2009; Zaheer, Schomaker, & Genc,
2003). Initial discussions about ‘‘how we are different’’ and ‘‘how do we
identify and select best practices’’ are replaced by discussions regarding the
‘‘next practices’’ that will be used as the combined firm moves forward.
Vaara, Tienari, and Santti (2003), for example, describe a metaphor exercise
used in a Finnish–Swedish merger as one approach for unifying organiza-
tional team members after a merger. Their approach focuses on exploring
the construction of ‘‘us’’ versus ‘‘them’’ images and forming an image of a
common future shared by all employees (Vaara et al., 2003). Activities that
focus on creating a shared identity will bring culture to the forefront of the
15. Managing Cultural Integration 109
integration process and can help to prevent fragmentation. Creating a
strong shared identity is a complex process in cross-border mergers.
Denison, Xin, and Zhang (2009) describe the efforts of GE Healthcare to
build up their anesthesia business in China. The core of GE’s technology
came from their acquisition of the Finnish company, Datex-Ohmeda (D-O)
in 2003. GE entered the Chinese market in 2007, through the acquisition of
Clinical Systems Wuxi (CSW), a local Chinese firm that had created their
own line of anesthesia equipment, modeled on D-O technology. GE
recruited a Finn, Matti Lehtonen, who had lived in China for 25 years and
had worked with some of the D-O founders in the past, to serve as managing
director. The task faced by Lehtonen and his team was to integrate three
different cultures – the GE corporate culture with a strong emphasis on
global scale and world-class process control, the D-O culture, with strong
emphasis on technology leadership in the high end of the anesthesia market,
and the CSW culture, with their emphasis on an entrepreneurial approach to
the value segment of the fast growing Chinese market.
Lehtonen’s approach to this situation was to pursue a ‘‘vision-led
integration’’ that involved all employees in a series of local town hall
meetings as they sought to define one common identity among these three
organizations that combined three different national and corporate cultures.
This case is a strong reminder of the complexity of cross-border integration
and the importance of having a leadership team capable of dealing with
cultural complexity.
Develop and Sustain
As the merged or acquired firms become a single operating entity, it is
important to continue to develop and sustain a culture that drives
performance and aligns the people in the organization with the strategies
developed. If multiple M&As are a large part of a firm’s growth strategy,
more radical organizational development activity may be needed in order to
realize the gains from the M&As. Barkema and Schijven (2008) found that
organizations that engaged in major restructuring after subsequent mergers
were able to make better use of the synergistic potential of their past
mergers. Restructuring in these organizations often involved reducing
organizational inefficiencies by combining subunits with duplicate func-
tions. They suggest that organizational restructuring should be considered
as a second phase of postacquisition integration to be deployed when an
organization is engaged in frequent M&A activity (Barkema & Schijven, 2008).
16. 110 DANIEL R. DENISON ET AL.
Efforts to develop and adapt the organizational culture to the new business
make-up will ensure organizational alignment as well as help maintain a
culture that promotes high levels of firm performance. Understanding the
culture that has been created, learning from previous acquisition and
integration activity, and defining how M&A fits into the growth strategy of
the organization will allow for informed choices for future M&A activity.
The mergers that created Algeco Scotsman provide another useful case in
point. Algeco Scotsman is the world leader in modular space and storage
solutions. Its creation in 2007 was the result of a series of acquisitions in
North America and Europe. Algeco was purchased by the UK-based
investment firm TDR Capital in 2004 and was headquartered in France with
operations in 18 European countries, including Belgium, the Czech
Republic, Estonia, Finland, France, Germany, Italy, Lithuania, Luxem-
bourg, the Netherlands, Poland, Portugal, Romania, Russia, Slovakia,
Spain, and the United Kingdom. Acquisitions began in 2005 with the
purchase of UK-based Elliot Group, followed by Wraith plc in early 2007.
The last acquisitions in 2007 were US-based GE ModSpace and Williams
Scotsman International.
The cross-border M&A merger of Algeco Scotsman is unique in several
respects. First, the merger of Algeco with Williams Scotsman illustrates the
potential of a cross-border merger to create complementarity. Both
organizations were the leaders in their own regions of Europe and North
America and were merged together to become the global leader in the
modular space industry. Second, this M&A was orchestrated by a private
equity firm. TDR Capital is a private equity firm with a successful history of
conducting global transactions and investments. TDR Capital perceived the
modular space business as an industry with high potential for diversification
and growth and sought to create a global leader through the formation of
Algeco Scotsman (TDR Capital, 2010). The business case for the merger of
Algeco with Williams Scotsman was primarily to create a global business
leader, and also to leverage the scale of the two organizations, by capitalizing
on existing supply chains, and the skills of their respective staff through the
sharing of business best practices.
The Algeco Scotsman merger also raises an interesting perspective on the
power dynamics when both organizations are controlled by a private equity
firm. In Mirvis and Marks (1992) terms, this merger was a transformation –
extensive integration and change occurred at both organizations. Thus, a
concerted effort was needed to resolve differences between the two relatively
equal organizations and integrate them. But successful ‘‘merger of equals’’
are exceedingly rare (Hogan & Overmyer-Day, 1994; Zaheer et al., 2003).
17. Managing Cultural Integration 111
However, in this case, neither Algeco nor Williams Scotsman struggled to
become the dominant partner since they were both under the direction of
TDR Capital. This example may offer some hope for ‘‘merger of equals’’
deals, at least if both are subordinate to a common owner.
Early integration efforts focused on creating the signs and symbols
to signify a unified company, such as changing the name of the company on
the global headquarters in Baltimore, Maryland, United States, creating a
single internet and intranet site, and integrating HR, finance, and data
reporting systems. A global conference was held for top leaders from both
legacy companies to facilitate integration of top management and to
illustrate to the leadership the shared commonalities between them. The
global recession that followed the close of the Algeco Scotsman merger
provided a sense of urgency around the integration process, but full
integration is still an on-going process three years later. Interestingly
enough, national culture is not perceived to be as big a challenge in the
Algeco Scotsman merger as is the organizational culture. Comments about
differences in national culture are always to be expected, but the business
culture and the values that drive each organization often take longer to
discover.
The framework that we presented in Fig. 3 has offered an outline of the
cultural integration process that serves to keep the cultural factors inherent
in a cross-border merger on the agenda throughout the process. Keeping the
cultural factors on the agenda from beginning to end is always the first step
in successfully managing their impact on the integration process.
DISCUSSION
Many organizations leave the cultural issues underlying an M&A deal on
the back burner and neglect them until they catch on fire and burn down the
house. Managing cultural integration may be difficult, and the best practice
guidelines may be ambiguous, but the pattern of failures is usually clear:
They most often occur when the cultural issues, both at the national level
and at the firm level, are continually positioned as less important than the
financial, operational, and strategic issues. In that environment, issues over
cultural differences can grow until they begin to threaten to impact these
basic business fundamentals. The three practical recommendations that we
offer for avoiding the pitfalls of cross-border M&A are relatively simple to
state and relatively difficult to actually implement.
18. 112 DANIEL R. DENISON ET AL.
Our first recommendation is that executives give serious consideration to
the level of experience that they bring to the table in any deal that they
consider. As we have seen in this chapter, many forms of experience are
relevant in a cross-border merger: general M&A experience, general global
experience, as well as specific experience in the geographies, industries, and
firms involved. A serious assessment of the relevant experience and capability
of the leadership teams on both sides of the deal are essential to success.
Our second recommendation concerns one of the key aspects of
organizational and leadership capability: The capacity to deal with multiple
levels of complexity. National cultures, organizational cultures, occupa-
tional cultures, and business unit cultures all come flying at the organization
at the same time. A keen understanding that even the best, rational business
logic in the world is filtered through the sensibilities of a multitude of social
identities before it motivates anyone to action or consensus must guide the
decision-making process at every step in a cross-border merger.
Probably the most interesting research finding summarized in this chapter
is the contradictory finding that the similarity of two national cultures can
either be an asset or a liability depending on the way in which the
integration process is managed. The complementarity offered by mergers
such as Henkel Dial or Algeco Scotsman are clear examples of the pote-
ntial of cross-border mergers to drive a corporate growth strategy. But,
in both examples, the firms paid close attention to the quality of the
integration process. Thus, this is our third recommendation: The quality
of the integration process is a clear indication of the likelihood of success,
and a quality integration process must pay close attention to cultural
factors.
Our recommendations for M&A researchers interested in cultural
integration in cross-border M&A also includes three main points. The
first, closely linked to our practical recommendations, would be to increase
the focus of researchers on the dynamics of the integration process. With
few exceptions, the existing research does little to elaborate best practice for
the integration process. Better integration is advocated and several
researchers have shown that it can lead to more successful performance.
But a typology of integration options that updates or complements the
classic Mirvis and Marks framework and outlines the key choices still has
not been presented.
More research on the role of M&A in a corporate growth strategy
would also be useful. Organic growth and growth through acquisition are
often presented as alternative strategies, rather than complementary
strategies. In our experience, corporations that are driven to an M&A
19. Managing Cultural Integration 113
strategy because they have failed at organic growth are not likely to succeed.
In contrast, the most successful M&A-led growth strategies always seem to
create organic growth in their new acquisitions. But little research directly
addresses the interplay between organic growth and growth through
acquisition.
Finally, most of this chapter has been concerned with M&A with their
origins in mature Western firms. In contrast, it is clear that the biggest
challenges of the future will come when the acquiring firms come from
emerging markets and make acquisition in mature markets (Kumar, 2009).
Arcelor Mittal, Lenovo IBM, and Vale INCO all provide fascinating
examples of the dynamic future of cross-border mergers.
NOTE
1. These results are from the Denison Organizational Culture Survey. For more
information on this survey, please visit our website, www.denisonculture.com.
ACKNOWLEDGMENTS
The authors gratefully acknowledge the support for this chapter that has
been provided by IMD Business School and by Denison Consulting.
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