The Impact of Cultural Differences on Mergers and Acquisitions: A Comparative Analysis through Case Studies
DOI:
https://doi.org/10.54097/9p3wc826Keywords:
Cultural Differences; Merger and Acquisition; Cross-Culture.Abstract
Against the background of rapid economic growth and the prevailing global trend of cultural fusion, the landscape of mergers and acquisitions (M&As) is rife with cross-border and cross-cultural transactions. This paper delves into the profound impact of cultural disparities on M&As in the context of the ever-accelerating globalized economy. It does so by conducting a comparative analysis of various cross-cultural M&A cases, with a primary focus on dissecting instances of M&A failures resulting from cultural divergences. This paper also offers a balanced perspective by incorporating a case study of a successful M&A that navigated significant cultural diversity. Through these analyses, it seeks to unearth valuable insights for both scholars and practitioners. This paper not only presents potential solutions for managing cultural challenges but also scrutinizes the hurdles that arise from integrating diverse cultures in cross-cultural M&As. The findings contribute to a nuanced understanding of the intricacies involved in M&A transactions in an increasingly interconnected world.
Downloads
References
Abou El Hassan, M. (2022). Theoretical Perspective on the Impact of Globalization and the Development of the World Economy System. Fostering Recovery through Metaverse Business Modelling, 171.
Monga, M. S. (2022). An exploration of the Varied Aspects of Mergers and Acquisitions. Contemporary Issues in Banking, Insurance and Financial Services, 383.
Chiu, W. H., Shih, Y. S., Chu, L. S., & Chen, S. L. (2022). Merger and acquisitions integration, implementation as innovative approach toward sustainable competitive advantage: a case analysis from Chinese sports brands. Frontiers in Psychology, 13, 869836.
Lansford, J. E. (2022). Annual research review: Cross‐cultural similarities and differences in parenting. Journal of Child Psychology and Psychiatry, 63(4), 466-479.
Andriuškevičius, K., & Štreimikienė, D. (2022). Sustainability Framework for Assessment of Mergers and Acquisitions in Energy Sector. Energies, 15(13), 4557.
Yie, C. E., Constantia, I., & Ping, N. T. S. Cultural Crash between the Merger of Daimler-Benz and Chrysler: Applying Hofstede Analysis.
Shelton, C. D., Hall, R. F., & Darling, J. R. (2003). When cultures collide: The challenge of global integration. European Business Review, 15(5), 312-323.
Jackson, G., & Deeg, R. (2008). Comparing capitalisms: Understanding institutional diversity and its implications for international business. Journal of international business studies, 39, 540-561.
Riach, J. R. W., & Schneider, M. R. (2022). The DaimlerChrysler takeover failure revisited from a varieties-of-capitalism perspective. Cross Cultural & Strategic Management, 29(3), 552-568.
Haeruddin, M., Farhansyah, A., Haeruddin, M. I. W., & Mansur, M. A. R. (2020). We could be so good together: A Presentation of the Multinational Enterprises’ International Joint Venture Strategy Effectiveness. nternational Journal of Educational Administration, Management, and Leadership, 1(2).
Wang, B., & Wang, H. (2011). Chinese manufacturing firms’ overseas direct investment (ODI): patterns, motivations and challenges. Rising China: Global challenges and opportunities, 99.
Zhong, B., Soh, W. N., Ong, T. S., Muhammad, H. B., & He, C. X. (2022). Risk Assessment of Haier Group’s Overseas Investment Under International Financial Reporting Standards. Frontiers in Psychology, 13, 889670.
Yu, G. (2022). Research on Cultural Integration of Chinese Enterprises' Overseas Mergers and Acquisitions-Take Haier Group's acquisition of General Electric as an example. International Journal of Management and Education in Human Development, 2(01), 334-341.
Chen, G. (2022, March). Motivation Analysis and Performance Analysis of Haier Merger and Acquisition in Qingdao. In 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022) (pp. 2997-3001). Atlantis Press.
Littrell, L. N., & Salas, E. (2005). A review of cross-cultural training: Best practices, guidelines, and research needs. Human Resource Development Review, 4(3), 305-334.
Gudykunst, W. B., Hammer, M. R., & Wiseman, R. L. (1977). An analysis of an integrated approach to cross-cultural training. International Journal of Intercultural Relations, 1(2), 99-110.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
