When cultures collide: the challenge of global integration

Shelton, Charlotte; Hall, Richard F.; Darling, John R.

doi:10.1108/09555340310493036

Cited by 22 publications

(22 citation statements)

References 4 publications

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“…The Daimler-Chrysler merger is a well-known example of how synergies were used to justify the merger, but where such synergies have been difficult to find (Shelton et al 2004). It is interesting to note that while this article was being written, DaimlerChrysler was also facing a breakup, and the discussion around this case is very similar to that of BMPF.…”

Section: Dynamicsmentioning

confidence: 92%

A Recursive Perspective on Discursive Legitimation and Organizational Action in Mergers and Acquisitions

Vaara

Monin

2010

Organization Science

277

282

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This paper challenges the predominant view that legitimation is merely a specific phase in merger or acquisition processes. We argue that a better understanding of postmerger organizational dynamics calls for conceptualization of discursive legitimation as an inherent part of unfolding merger processes. In particular, we focus on the recursive relationship between legitimation and organizational action. We have two objectives: to outline a theoretical model that helps one to understand the dynamics of discursive legitimation and organizational action in postmerger organizations, and to examine a revealing case to distinguish the inherent risks and problems in discursive legitimation. Our case analysis focuses on the merger between the French pharmaceutical companies BioMérieux and Pierre Fabre. We adopt a critical multimethod approach and distinguish specific discursive dynamics and pathological tendencies in this case. The analysis highlights the unintended consequences of discursive legitimation, the central role of sensegiving and sensehiding in discursive legitimation, the inherently political nature of legitimation and the risks associated with politicization, the special problems associated with fashionable discourses and the role of the media, the use of specific discursive strategies for legitimation and delegitimation, and the crucial role of actual integration results. This analysis adds to the existing research on mergers and acquisitions by treating discursive legitimation as part of the merger dynamics. In particular, our case analysis provides a new explanation for merger failure. We also believe that the recursive model connecting discursive legitimation and delegitimation strategies to concrete organizational action makes a more general contribution to our understanding of organizational legitimation.

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Section: Dynamicsmentioning

confidence: 92%

A Recursive Perspective on Discursive Legitimation and Organizational Action in Mergers and Acquisitions

Vaara

Monin

2010

Organization Science

277

282

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“…A more recent global survey by KPMG (Colin & Spitzer, 2001) reported that 70 percent of the combinations studied failed to add value. Shelton, Hall and Darling (2003) noted that two-thirds of the M&A transactions they considered destroyed shareholder value, primarily because of intended synergies not being realised. Other studies held a similar view that, while the target shareholders generally fare well, most acquisitions fail to create value for acquirers (Carr et al 2005;Hazelkorn, Zenner & Shivdasani 2004;Mamdani & Noah 2004;Vester 2002;).…”

Section: Literature Reviewmentioning

confidence: 99%

“…For example, in a worldwide survey in 1998/99 by Watson Wyatt, retention of talent, communication and integration of cultures were rated as the three most critical activities in the integration plan (Devine 2002). Poor cultural fit or lack of cultural compatibility have become much-cited reasons for M&A failure (Beard & Zuniga 2006;Bijlsma-Frankema 2001;Cartwright & Schoenberg 2006;Huang & Kleiner 2004;Lynch & Lind 2002;Shelton et al 2003;Teerikangas & Very 2006). Furthermore a by-product of many, if not most M&As, is that, target firm executives experience considerable stress causing an average of almost 70 percent to depart in the five years following completion (Schraeder & Self 2003).…”

Section: Literature Reviewmentioning

confidence: 99%

Microcap M&A: An Exploratory Study

Steen¹,

Turpie

2014

AABFJ

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A substantial body of accounting and finance literature has been devoted to the study of Mergers and Acquisitions (M&As) dominated by discussions relating to the gains and losses that accrue from transactions involving large public companies. This paper makes a unique contribution to the literature by investigating the M&A experience of microcap businesses. Transactions involving microcap M&A are substantially different to those involving large companies on a number of dimensions. This paper explores the determinants of microcap M&A success and pitfalls and problems from an integration perspective. Due to the paucity of research in the area an exploratory research design is employed, conducting interviews with five CEOs of companies that had each managed multiple transactions. We find microcap M&As are successful when measured against identified goals but generally take longer and cost more than expected. Further, culture and communication are key issues in determining success/ failure. We also find the in-house management of integration aspects is problematic for these businesses and suggest this warrants further study.

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“…In fact, these cultural differences in many ways were the foundation for the mutual attraction between the two companies. The Germans admired the entrepreneurial spirit and innovative thinking of the Chrysler team, while Chrysler folks respected the methodological engineering savvy of the Germans (Shelton, Hall, and Darling, 2003). Based on the above observations, it is clear that they didn't just make cars differently; they lived in different worlds (Badrtalei -Bates, 2007).…”

Section: An Important Success Factor: the Speed Of Integration (Soi)mentioning

confidence: 99%

“…Without such a value base, it was impossible to identify a core purpose and create a win-win vision for cultural integration. (Shelton -Hall -Darling, 2003).…”

Section: An Important Success Factor: the Speed Of Integration (Soi)mentioning

confidence: 99%

The influence of speed of integration on M&A integration Success

Morag¹,

Barakonyi²

2009

Veztud

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Despite the importance of the dimension of time in the world of competitive strategy, only a few researches have focused on the issue of the speed of the integration (SOI) in the process of merger/acquisition (M&A) and its impact on the deal-success. This article focused on the issue of speed of integration and its impact on the integration effectiveness and the success of the M&A. This impact changes depending on the combination of a number of variables such as the main reason of the acquisition, the type of acquisition, the characteristics of the companies involved in the acquisition, and the selected integration approach. Therefore, every acquirer has to pay attention to the SOI variable and to adjust the optimal speed to the specific acquisition scenario.

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When cultures collide: the challenge of global integration

Cited by 22 publications

References 4 publications

A Recursive Perspective on Discursive Legitimation and Organizational Action in Mergers and Acquisitions

A Recursive Perspective on Discursive Legitimation and Organizational Action in Mergers and Acquisitions

Microcap M&A: An Exploratory Study

The influence of speed of integration on M&A integration Success

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