National Cultural Distance and International Acquisition Performance

Abstract

Abstract-This paper investigates the implications of national cultural distance on international acquisition performance, involving companies from England. It proposes recommendations for the managers of English companies in how to manage these differences effectively. In general, findings indicate that the differences in national culture obstruct integration capabilities, bringing about a negative indirect effect on acquisition performance. From these findings, our recommendations are established, which suggest that in order to succeed, management styles and communication strategies need to be adapted to suit the target firms culture. In addition trust must be developed amongst all members in order to reduce any resistance to change.Index Terms-GLOBE index, international acquisitions, national culture, performance.

The Determinants of International Acquisition Performance in Korea : The Impact of Knowledge Transfer and Organizations' Cultural Differences and Strategic Fit

“…to the effects of independent and control variables in international acquisition performance and to distinguish between direct and interaction effect (Table 4) Drawing on the knowledge-based perspective, the dimensions of knowledge transfer, cultural dynamics, and organizational strategic compatibility are determined in this study to be crucial for understanding such inquiries (Akanni & Ahammad, 2015;Easterby-Smith et al, 2008;Lyes & Salk, 2007;Perez-Nordtvedt et al, 2008;Reus & Lamond, 2009 (Park et al, 2009). However, the result of their efforts has been unclear.…”

“…However, existing understandings of how and when knowledge is best transferred for the benefit of international acquisitions is rather limited. For instance, studies have resulted in inconsistent findings on the impact of organizations' nationality and corporate cultural differences on international acquisition (Akanni & Ahammad, 2015;Ahammad & Glaister, 2009;Perez-Nordtvedt, Kedia, Datta, & Rasheed, 2008). Numerous empirical studies have also revealed that organizational differences in nationality and corporate culture have a negative effect on international acquisition performance, while other studies have shown quite the opposite or have had mixed results (Ahammad, Tarba, & Glaister, 2016;Sarala & Vaara, 2010;Slangen, 2006;Vaara, Sarala, Stahl, & Bjorkman, 2012).…”