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Cultural Integration Challenges
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Cultural Integration Challenges
Group L , MBA (PT)
“Frequently, when a foreigner violates a key cultural value, he or she is not even aware of the violation, and no one brings the matter to his or her attention.”
•once a visitor makes a major mistake it is frequently impossible to rectify it
•it may well take several months to realize that polite rejections really signify isolation and banishment
Cultural Integration Challenges
Group L , MBA (PT)
“Even genuinely small cultural mistakes can have enormous consequences.”
Cultural Integration Challenges
Group L , MBA (PT)
“Knowing a country’s language, although clearly helpful, is no guarantee of understanding its cultural mindset, and some of the most difficult problems have been created by individuals who have a high level of fluency but a low level of cultural understanding.”
Cultural Integration Challenges
Group L , MBA (PT)
“Moreover, members of a culture tend to assume that highly fluent visitors know the customs and rules of behavior, and these visitors are judged severely when violations occur.”
Cultural Integration Challenges
Group L , MBA (PT)
Every CEO who has been through a cross-border merger says he knew culture was going to matter but did not realise how much.C. Firstbrook, Head of Strategy Europe, Accenture, Financial Times, July 31, 2008
Another drug industry mega merger goes bust: Clash of cultures kills Monsanto-AHP marriage.T. Burton & E. Tanouye, Wall Street Journal, October 14, 1998
Lots of Anecdotal Evidence Showing Negative Effects
It’s difficult enough for two domestic firms with markedly different cultures to combine. But in a cross-border context, opportunities to misunderstand and disagree multiply like weeds.R. Bruner, Harvard Business Review, May 2004
Do Cultural Differences Matter in M&A?
Group L , MBA (PT)
Culture Countsand
it counts quite a bit
Group L , MBA (PT)
MULTICULTURAL MANAGEMENT
Group L (MBA PT 2007-10)
07 MAR 2010
Group L , MBA (PT)
Abhishek Kumar (S-76)Amit Gulati (N-3)Arindam Das Gupta (N-74)Babu Gurucharan (S-15)DS Dahiya (S-82)Girish Chand (S-78)Kapil Gupta (S-89)Kailash Chauhan (N-79)Kuldeep Singh (S-79)Manish Aggarwal (S-80)Mukul Kamble (N-78)Naresh Kumar (N-76)Nimisha Trikha (S-38)P S Pentle (S-75)Ravi Makhija (N-49)Samrat Patnaik (S-74)SK Chauhan (S-64)V S Sivasubramanian (S-68)Vishal Ranjan (N-69)
The Group
Group L , MBA (PT)
Culture
Culture means the whole set of social norms and responses that conditions a population’s behavior. Culture makes one social environment different from another and gives each a shape of its own.
Culture is acquired and inculcated, it is a set of rules and behavior patterns that an individual learns but does not inherit at birth. The process of learning a culture pattern is called enculturature.
Group L , MBA (PT)
Management Perspective Terpstra & David (1985)
Culture is a learned, shared, compelling, interrelated set of symbols whose meaning provides a set of orientations for members of a society. These orientations taken together, provide solutions to problems that all societies must solve if they are to remain viable.
Group L , MBA (PT)
Why Study Culture ?
One’s management skills improve with an understanding of the culture influences that affect colleagues and employees.
Helps to be a successful negotiator
Successful strategic alliances
Lead and manage effectively – understand cultural expectations that influence people’s behavior
To avoid cultural shock
Group L , MBA (PT)
How cultures view each other
Stereotyping – assumes that all people within one culture or group behave, believe, feel and act the same.Ethnocentrism – occurs when people from one culture believe that theirs are the only correct norms, values and believes.Self-reliance criterion – assumption that people in another culture will behave like people in your culture.
Group L , MBA (PT)
USA Japan Arab cuntries
Freedom Belonging Family security
Independence Group harmony Family harmony
Self-reliance Collectiveness Parental guidance
Equality Age / seniority Age
Individualism Group consensus Authority
Competition Cooperation Compromise
Efficiency Quality Devotion
Openness Go-between Hospitality
Cultural Values
Group L , MBA (PT)
Inspiration
“If you want to move people, it
has to be toward a vision that’s
positive for them, that taps
important values, that gets
them something they desire,
and it has to be presented in a
compelling way that they feel
inspired to follow.”
— Martin Luther King Jr.
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Inspiration
“In this multicultural world, thanks to the success of globalisation, if you want to inspire
people to follow, you have to understand and respect their cultural diversity .”
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“Actually, the most important
part of culture ... is that which
is hidden and internal but
which governs the behavior
encounter.” *Source: Edward T. Hall, 1976
Understanding Culture
Group L , MBA (PT)
problem/threat opportunity/resource
culture gets “in the way”
culture as a source of competitive advantage
Culture as a:
Group L , MBA (PT)
“importance of releasing cultural synergies at the interfaces where knowledge, values and experience are exchanged”
Søderberg & Holden “Rethinking Cross Cultural Management in a Globalizing Business World” (2002)
Example: Indian Global Sales Manager for a Danish company from his office in
Shanghai.
How to get that competitive advantage?
Group L , MBA (PT)
Model of core problems & core solutions (Holden 2002)
Core problems
Ethnocentrism in the face of
Cultural diversity experienced as
Cultural shock which varies with exerience and may be lesser or greater in impact
Core solutions
Adaptation as first reaction to cultural shock
Adjustment as a more permanent & positive reaction
Development of intercultural skills: creating ”the cross-cultural manager”
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Culture
Authority, responsibility & accountability
Urgency
CommitmentAgreements & contracts
Risk-takingKonflikt
CommunicationThe way and style
information is shared
StructureExtent to which uncertainty
creates discomfort
Individual/groupWhether individual or group takes precedence
TimeThe view of and way time is used
PowerExtent to which
power is distributed
Critical Cultural Variables
Source: Interlink
Group L , MBA (PT)
Linking an individual’s personality and values to the workplace
•Personality – job fit
•Person –organization fit
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Achieving Person-Job Fit
Personality Types
• Realistic
• Investigative
• Social
• Conventional
• Enterprising
• Artistic
Personality Types
• Realistic
• Investigative
• Social
• Conventional
• Enterprising
• Artistic
Personality-Job Fit Theory (Holland)
Identifies six personality types and proposes that the fit between personality type and occupational environment determines satisfaction and turnover
Group L , MBA (PT)
How cultures view each other
Stereotyping – assumes that all people within one culture or group behave, believe, feel and act the same.
Ethnocentrism – occurs when people from one culture believe that theirs are the only correct norms, values and believes.
Self-reliance criterion – assumption that people in another culture will behave like people in your culture
Group L , MBA (PT)
Constructing Cultural Metaphors – Great Contributors
• Florence Kluckholn and Fred Strodtbeck
• Edward T. Hall
• Geert Hofstede
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Florence Kluckholn and Fred Strodtbeck
• FLORENCE KLUCKHOHN (HARVARD UNIVERSITY) AND FRED STRODTBECK (UNIVERSITY OF CHICAGO)
• DEVELOPED VALUES ORIENTATION THEORY IN 1961
• A WIDELY USED TOOL FOR CROSS-CULTURAL RESEARCH AND INTERACTION.
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Edward Twitchell Hall
• Few researchers have contributed more to intercultural understanding than American anthropologist Edward Twitchell Hall.
• Best known for his studies of personal space and his definitions of high- and low-context cultures.
• Hall was instrumental in establishing intercultural research as a field of its own after World War II.
• In his book The Silent Language, the author explores the cross-cultural context of communication.
Group L , MBA (PT)
Primary Message Systems
• Interaction• Association• Subsistence• Bisexuality• Territoriality• Temporality• Learning• Play• Defense• Exploitation
*Source: Edward T. Hall, The Silent Language
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Geert Hofstede
• Prominent organizational Psychologist.
• Research is based on a large questionaire survey of IBM employees and managers working in 53 different countries.
• IBM study demonstrated that national culture explained 50% of the differences in attitudes in IBM’s 53 countries.
Group L , MBA (PT)
• Power Distance (Wealth & Status – Low / High)
• Individualism vs. Collectivism
• Masculinity vs. Femininity
• Uncertainty Avoidance (High / Low)
• Long-term and Short-term Orientation
Values Across Cultures: Hofstede’s Framework Values Across Cultures: Hofstede’s Framework
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Hofstede Research Findings:
• Asian countries (more collectivist than individualistic).
• United States - highest on individualism.
• German & Hong Kong - high on masculinity.
• Russia & Netherlands - low on masculinity.
• China & Hong Kong - long-term orientation.
• France & the USA - short-term orientation
Group L , MBA (PT)
Cultural Metaphors
Understanding Global Cultures describes a method for understanding easily and quickly the cultural mind-set of a nation and comparing it to other nations
Group L , MBA (PT)
Cultural Metaphors
• IDENTIFYING SOME PHENOMENON, ACTIVITY, OR INSTITUTION OF A NATION’S CULTURE THAT ALL OR MOST OF ITS MEMBERS CONSIDER TO BE VERY IMPORTANT AND WITH WHICH THEY IDENTIFY CLOSELY
• CHARACTERISTICS OF THE METAPHOR THEN BECOME THE BASIS FOR DESCRIBING AND UNDERSTANDING THE ESSENTIAL FEATURES OF THE SOCIETY
Group L , MBA (PT)
Cultural Metaphors
• EACH METAPHOR IS A GUIDE OR MAP THAT HELPS THE FOREIGNER UNDERSTAND QUICKLY WHAT MEMBERS OF A SOCIETY CONSIDER VERY IMPORTANT
• BUT IT IS ONLY A STARTING POINT AGAINST
WHICH WE CAN COMPARE OUR OWN EXPERIENCES AND THROUGH WHICH WE CAN START TO UNDERSTAND THE SEEMING CONTRADICTIONS PERVASIVE IN MOST, IF NOT ALL, SOCIETIES
Group L , MBA (PT)
Cultural Metaphors include . . .
• religion
• early socialization and family structure
• small group behavior
• public behavior
• leisure pursuits and interests
• language
– oral and written communication
• nonoral communication
– body language• kinesics (motion)• proxemics (space)
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• total Lifestyle
– work / leisure / home and time allocations to each of them
• aural space
– the degree to which members of a society react negatively to high noise levels
• roles and status of different members of a society• holidays and ceremonies
• greeting behavior
• humor
Cultural Metaphors include . . .
Group L , MBA (PT)
• sports
– as a reflection of cultural values
• political structure of a society
• the educational system of a society• traditions and the degree to which the established
order is emphasized
• history of a society
– but only as it reflects cultural mind-sets, or the manner in which its members think, feel, and act
– not a detailed history
Cultural Metaphors include . . .
Group L , MBA (PT)
• food and eating behavior• social class structure
• rate of technological and cultural change
• organization of and perspective on work
– such as a society’s commitment to the work ethic, superior-subordinate relationships, and so on
• any other categories that are appropriate
Cultural Metaphors include . . .
Group L , MBA (PT)
Social Dynamics of Culture Change
Adopter category
Innovators First 2.5%
Early adopters Next 13.5%
Early majority Next 34%
Late majority Next 34%
Laggards Remaining 16%
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Promoting Culture Change
Building on the old
Identifying the rational
Avoiding the unknown
Recognizing the influence of others
Providing support
Group L , MBA (PT)
Cultural Competency
“To be culturally competent doesn’t mean you
are an authority in the values and beliefs of every
culture. What it means is that you hold a deep
respect for cultural differences and are eager to
learn, and willing to accept, that there are many
ways of viewing the world.”
— Okokon O. Udo, PhDIntegrative Health and Wellness
Northwestern Health Sciences University
Group L , MBA (PT)
Cultural Competency — A Practical View
“To be culturally competent doesn’t mean that you will
never encounter cultural bumps. What it means is that you
will be more aware of how and why cultural bumps
happen while skillfully navigating them for best outcomes.”
—Ira SenGupta, CCHCP, December 05
Group L , MBA (PT)
Cultural Bump...
As a result of a personal interaction you are:
– confused
– frustrated
– angry
– misunderstood
– helpless
– hopeless
Group L , MBA (PT)
Group L , MBA (PT)
Cultural Competence Actualized
The state of being capable of functioning effectively in the context of cultural differences
Group L , MBA (PT)
Elements of Cultural Competence
• Awareness of one’s own culture
• Awareness and acceptance of difference• Understanding the dynamics of difference
• Development of cultural knowledge
• Celebration of diversity
Group L , MBA (PT)
Five Steps to Cultural Competency
• Awareness of self and the other
• Acknowledgement
• Honest validation
• Negotiation
• Action: choices and options
Group L , MBA (PT)
• STUDIES THE BEHAVIOUR OF PEOPLE IN ORGANISATIONS AROUND THE WORLD
• TRAINS PEOPLE TO WORK IN ORGANISATIONS WITH EMPLOYEE AND CLIENT POPULATIONS.
• DESCRIBES ORGANIZATIONAL BEHAVIOUR WITHIN COUNTRIES AND CULTURES
• COMPARES ORGANISATIONAL BEHAVIOUR ACROSS CULTURES AND COUNTRIES
• SEEKS TO UNDERSTAND AND IMPROVE THE INTERACTION OF CO-WORKERS, CLIENTS, SUPPLIERS, AND ALLIANCE PARTNERS FROM DIFFERENT COUNTRIES AND CULTURES
Cross-cultural management
Adler: “International Dimensions of Organizational Behavior” (1991)
Group L , MBA (PT)
Management challenge in a globalised world
Group L , MBA (PT)
Training For International Assignments
•Need for cross –cultural training
•Approaches to training/ design of training program
•Assessing the need for rigorous Training
•Family issues
•Training resources
Group L , MBA (PT)
Need for cross cultural training
• Training on key cultural norms– Values– Behaviours– Beliefs
• Utility of training– Understanding behaviour– adaptation
• Advantages– Cross cultural skill development– Improvement in productivity/ performance
Group L , MBA (PT)
Approaches to training/ design of training program
• Attribution training– Understand reasons for a specific behaviour– To learn values, norms, perceptual mapsused by host to evaluate
behaviour. Attribution training• Cultural awareness training
– attributes common to home/ host culture– Affect of culture on host behaviour
• Cognitive behaviour modification training– Compare, reward and punishment norms of home/ host– Formulate personal strategy to obtain rewards- avoid negative
experiences• Experiential training
– Expsure to real life in host country– Through visits, complex role plays and cross cultural simulations
Group L , MBA (PT)
Training tools/ techniques
• Area briefings• Lectures• Books/ reading material• audio visuals• Class room language training• Case studies• Culture assimilators- questionnaire; eval; feedback• Sensitivity training• Role plays• Simulations- complex role plays; real life situations- stay in simulated
host villages
Group L , MBA (PT)
Accesing the need for rigor
Experimental•Simulations•Role play•Field trips•Interactive language training
Analytical•Sensitivity training•Culture assimilators•Class room language training•Audio visuals
Factual•Books/ reading material•lectures•Area briefings
Group L , MBA (PT)
How Rigorous The Training Should Be
• Job Novelty– Level of decision making power– Job Autonomy– Strategy design/implication
• Degree of interaction with host nationals– Limited Interaction – less rigorous– High Degree of Interaction – More rigorous– Frequency of Interaction – Importance to success of operation
• Culture Novelty– Higher Novelty-more rigorous– Highly novel cultures – difficult to adjust and absorb
training programs
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“Cross cultural training needs to be a family
affair”
Group L , MBA (PT)
Family Issues
• Adaptability of spouse and children equally important.• Dual career couples – visa restrictions• Cultural shock to school going children – need for rigorous pre-
departure training.• Adjustment to new life styles/roles/norms
Group L , MBA (PT)
Training Resources and Methodology
• Resources– Consulting firms– Assignment of staff member from home office
• Methodology– Survival level- Pre Departure training– Rigorous training after 4 – 6 months of overseas stay
Group L , MBA (PT)
Multi-cultural teams
“The central operating mode for a global
enterprises is the creation, organisation and
management of multi-cultural teams –
groups that represent diversity in functional
capability, experience levels and cultural
backgrounds.
Rheinsmith, “The Manager’s Guide to Globalization” (1993)
Group L , MBA (PT)
A manager or facilitator should use the following order in examining potential team difficulties:
• personal styles• stage of team development• effective team functioning• stages of professional development• national culture• corporate culture• functional culture
Diagnosing difficulties in team
Group L , MBA (PT)
Lenovo-IBM – A Marriage Across 12 Time Zones
IBM PC Division
• $10b revenues (IBM total: $96b)
• 8% of global market
• No. 3 global PC firm
• IBM founded 1911
• $3b revenues
• 27% of Chinese Market
• No. 8 global PC maker
• Founded 1984, HK listed 1994
Lenovo
Lenovo takes over IBM PC Division (announced 8 Dec 2004, completed 1 May 2005)
• Right to use IBM brand name for 5 yrs• IBM provides sales and support services• IBM will be preferred vendor for financing and maintenance services• 10,000 IBM employees join Lenovo
$1.75b deal: 600m equity (19% stake), $650m cash, take over $500m liabilities
Source: Stahl, Ngo & Yean (2008). Lenovo-IBM: A marriage across 12 time zones. INSEAD Case.
Group L , MBA (PT)
• Lenovo Group Limited is a Chinese-based multinational computer technology corporation
• Incorporated as Legend in Hong Kong in 1988
• Lenovo acquired the former IBM PC Company Division, which marketed the ThinkPad line of notebook PCs, in 2005 for approximately $1.75 billion.
65
Lenovo-IBM – A Marriage Across 12 Time Zones
Group L , MBA (PT)
Renault Nissan – Partnering with the Unfamiliar
Source: Korine, Asakawa & Gomez (2005). Renault and Nissan: Partnering with the unfamiliar. In Stahl & Mendenhall (Eds.), Mergers and acquisitions: Managing culture and human resources. Stanford Business Press.
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• The Renault-Nissan alliance, established in March 1999, is the first industrial and commercial partnership of its kind involving a French and a Japanese company
• A real success• 2 global companies linked by cross-shareholdings • Third largest global automaker• Global market share of 9% (by volume) • Significant presence in major world markets (United States, Europe,
Japan, China, India, Russia)
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Renault Nissan – Partnering with the Unfamiliar
Group L , MBA (PT)
Some people consider cultural differences as a source of friction and conflicts. It is true. But cultural differences are basically a source of enrichment and progress. (Carlos Ghosn, 2000)
Cultural differences can be viewed as either a handicap or a powerful seed for something new. What we see today [in Renault-Nissan] is that differences in culture are… seen more and more as a means of cross-fertilization and innovation. … So, it is a careful selection of best practices. (Carlos Ghosn, 2001)
Sources: Carlos Ghosn, INSEAD Tokyo Forum, November 2000; Emerson 2001 ‘An interview with Carlos Ghosn, President of Nissan Motors and Industry Leader of the Year. Journal of World Business, 36, 3-10 .
The Role of Culture in Alliances, Mergers & Acquisitions: Renault-Nissan
Group L , MBA (PT)
DaimlerChrysler – a sad ending
Source: Kühlmann & Dowling (2005). DaimlerChrysler: A case study of a cross-border merger. In Stahl & Mendenhall (Eds.), Mergers and acquisitions: Managing culture and human resources. Stanford Business Press.
Group L , MBA (PT)
• DaimlerChrysler was founded in 1998 when Mercedes-Benz manufacturer Daimler-Benz (1926–1998) of
Germany merged with the US-based Chrysler Corporation. • Buyout failed and as late as 2002, DaimlerChrysler appeared to run two independent product lines.• DaimlerChrysler sold Chrysler to Cerberus Capital Management of New York, a private equity firm specialising in restructuring troubled companies in 2007. • From October 5, 2007, the company has been titled Daimler AG. • The US company adopted the name Chrysler LLC.
DaimlerChrysler – a sad ending
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• Analysts felt that strategically, the merger made good business sense.
• But contrasting cultures and management styles hindered the realization of the synergies.
• Daimler-Benz attempted to run Chrysler USA operations in the
same way as it would run its German operations.
• Daimler-Benz was characterised by methodical decision-making. • US based Chrysler encouraged creativity.
• While Chrysler represented American adaptability and valued efficiency and equal empowerment Daimler-Benz valued a more traditional respect for hierarchy and centralized decision-making.
DaimlerChrysler – a sad ending
Group L , MBA (PT)
And the majority of “FAILURE” IS ATTRIBUTED TO….
1.The Human Factor &2.The Cultural “Misfit”
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Group L , MBA (PT)
Arcelor-Mittal Merger• In January 2006, Mittal Steel launched a $22.7 billion offer to Arcelor’s shareholders. • Deal was split between Mittal Shares (75 percent) and cash (25 percent). • Arcelor shareholders would have received 4 Mittal Steel shares and 35 euros for every 5 Arcelor shares they held.
• LN Mittal believed that the consolidation will end with three of four major companies dominating the industry around
2010.
Group L , MBA (PT)
The Controversy?? • Arcelor Management believed that Arcelor itself would have been doing the
acquisitions and not the other way around. • The management was extremely hostile to Mittal Steel’s bid from the beginning
despite the fact that most industry analysts and investment banks pointing out that the deal was in Arcelor‘s best interests.
• Arcelor repeatedly played the patriotic card in order for shareholders to reject the bid.
• Guy Dolle the CEO of Arcelor dismissed Mittal Steel as a “company of Indians” and unworthy of taking over a European company.
• The French government (despite not being a shareholder) was against the deal because of worries over its 28000 Arcelor employees.
• Despite repeated assurances from Mittal that the deal would not lead to layoffs the government of France was never convinced.
• The government of Luxembourg (a stakeholder) was against the deal as well for a variety of reasons.
• The European Union approved of the Mittal-Arcelor deal.
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The stance of the Indian Government
• Most Indians were of the opinion that the deal was not getting pushed through because of Lakshmi Mittal’s Indian nationality.
• The Indian government raised the issue at several forums especially through commerce minister Kamal Nath.
• It was also alleged that India had threatened not to ratify a taxation accord with Luxembourg due to the latter’s opposition to the deal.
• The irony is that LN Mittal himself felt that there was no case of “racism” here as Mittal Steel was a European company and NOT an Indian one.
Group L , MBA (PT)
And the outcome was…
• The deal was finally clinched when the shareholders of Arcelor agreed to Mittal Steel’s offer ending the transaction that had dragged on for months.
• Mittal had to however considerably sweeten the initial offer.
• Under severe pressure to counteract the Arcelor- Severstal merger, Mittal had to raise its valuation of Arcelor to $32.9 billion.
• The Mittal family holds 43 percent of the combined group.
• The combined company holds 10 percent of the global market for steel. The consolidation phase is well and truly underway .
Group L , MBA (PT)
Group L , MBA (PT)
Tata-Corus Merger
• Tata Steel’s US$ 8 billion takeover of Corus in the UK, is the largest-ever overseas buyout by an Indian company. • It also breaks the US $1 billion barrier for Indian companies. • Tata Steel — with capacity of five million tonnes — is now acquiring a firm almost four times its size in capacity.•Long time Corus employees in UK were aghast when they heard of the possibility that an "Indian" company will acquire them, and they will have an Indian boss - whose name they cannot pronounce.
"The biggest challenge ahead of the Tatas would be how to integrate these two companies, these two cultures, how to work with a new type of management and how to work in a
matured market as opposed to working in a developing market."
Group L , MBA (PT)
STRATEGIES FOR MANAGING HUMAN RESOURCE IN M&A
• Communication• Common culture• Training and development
• Mutual respect• Individual counseling
Group L , MBA (PT)
Empirical Evidence is Mixed
Cultural distance was found to be negatively related (e.g., Weber, Shenkar & Raveh, 1996), unrelated (e.g., Markides & Oyon, 1998), or positively related (e.g., Morosini, Shane & Singh, 1998) to measures of post- acquisition performance.
Success rate of cross-border M&A was found to be higher than for domestic M&A (e.g., Chakrabarti et al., 2009).
The Role of Cultural Distance in M&A: What Do We Know?
Source: Stahl & Javidan (2009). Comparative and cross-cultural perspectives on cross-border mergers and acquisitions. In Bhagat & Steers (Eds.), Handbook of culture, organization, and work. Cambridge University Press.
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Cultural Distance and M&A Performance: Causal Models
Cultural Distance
M&APerformance
Cultural Distance
M&APerformance
Mediating Variable(e.g., Resistance)
Cultural Distance
M&APerformance
Moderating Variable(e.g., Integration Level)
a) Unmediated model
b) Mediated model
c) Moderated model
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Cultural Distance and M&A Performance: Causal Modelsd) Complex model
Cultural Differences - Practices - Values - Assumptions
M&A Performance- Operational synergies - Accounting performance- Abnormal returns
Mediating Variable(e.g., Resistance)
Moderating Variable(e.g., Integration Level)
Professional
National
FunctionalIndustry
Corporate
Company A Culture
Professional
NationalFunctional
IndustryCorporate
Company B Culture
Source: Stahl (2008). Cultural dynamics and impact of cultural distance within mergers and acquisitions. In Smith, Peterson & Thomas (Eds.), The Handbook of cross-cultural management research (pp. 431-448). Thousand Oaks: Sage.
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Hypothesized Effect of Cultural Distance on M&A Performance
Integration Process
M&A Performance
Sociocultural Integration
- Shared identity - Positive attitudes - Trust
Task Integrationa
- Capability transfer - Resource sharing - Learning
Dimension of Cultural Differences
Degree of Relatedness
Synergy Realization
Accounting performance
Share- holder Value
Abnormal returns
Cultural Distance
- Practices - Values - Basic assumptions
Time
(Moderators)
Note: aThe relationship between cultural differences and task integration has not been examined with sufficient frequency in previous research to be considered in this meta-analysis.
Source: Stahl & Voigt (2008). Do cultural differences matter in mergers and acquisitions? A tentative model and meta-analytic examination. Organization Science, 19, 160-176.
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Final Thoughts...
You and IWe meet as strangers, each carrying a mysterywithin us. I cannot say who you are.I may never know you completely.But I trust that you are a person in your own right, possessed of a beauty and value that arethe Earth's richest treasures.So I make this promise to you;I will impose no identities upon you, but willinvite you to become yourselfwithout shame or fear.I will hold open a space for you in the worldand allow your right to fill it with an authenticvocation and purpose. For as long as your searchtakes, you have my loyalty.
Author Unknown
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THANK YOU
