Does cultural assimilation affect organizational decision-making on quality-related incidents? — A company's post-M&A experience
AbstractDifferences in organizational culture have been suggested as the major reason for the failure of mergers and acquisitions (M&A) to achieve synergies. We analyze an M&A case, focusing on the assimilation of organizational culture particularly with regard to quality. The purpose is to explore the consequences that internal inconsistencies in quality culture exert on quality performance, and to illustrate whether the assimilation of quality culture relates to organizational decision-making as corporate integration proceeds after a merger. We collect a unique data set that is not generally available, including internal quality data, customers' quality ratings, and records of quality-related incident resolution. A total of 301 incidents occurring during five years after a merger are analyzed by measuring the time taken to address the incidents and conducting a questionnaire survey followed by interviews. Further, a modeling study of the cultural assimilation process is conducted to establish a relationship between our theory and empirical findings. The results reveal that the efficiency of organizational decision-making is associated with the degree of cultural assimilation and how deeply into the layers of quality culture the assimilation extends. The findings suggest pragmatic implications as well as effective strategies managers could adopt for M&As and stimulate further research on corporate consolidations.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of International Management.
Volume (Year): 18 (2012)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- House, Robert & Javidan, Mansour & Hanges, Paul & Dorfman, Peter, 2002. "Understanding cultures and implicit leadership theories across the globe: an introduction to project GLOBE," Journal of World Business, Elsevier, vol. 37(1), pages 3-10, April.
- Shimizu, Katsuhiko & Hitt, Michael A. & Vaidyanath, Deepa & Pisano, Vincenzo, 2004. "Theoretical foundations of cross-border mergers and acquisitions: A review of current research and recommendations for the future," Journal of International Management, Elsevier, vol. 10(3), pages 307-353.
- Carrillo, Juan D & Gromb, Denis, 2002.
"Cultural Inertia and Uniformity in Organizations,"
CEPR Discussion Papers
3613, C.E.P.R. Discussion Papers.
- Nicolas Coeurdacier & Roberto A. de Santis & Antonin Aviat, 2009.
"Cross-border mergers and acquisitions and European integration,"
Sciences Po publications
info:hdl:2441/c8dmi8nm4pd, Sciences Po.
- Nicolas Coeurdacier & Roberto A. De Santis & Antonin Aviat, 2009. "Cross-border mergers and acquisitions and European integration," Economic Policy, CEPR & CES & MSH, vol. 24, pages 55-106, 01.
- HIROTA Shinichi & KUBO Katsuyuki & MIYAJIMA Hideaki, 2007. "Does Corporate Culture Matter? An Empirical Study on Japanese Firms," Discussion papers 07030, Research Institute of Economy, Trade and Industry (RIETI).
- Karen L Newman & Stanley D Nollen, 1996. "Culture and Congruence: The Fit Between Management Practices and national Culture," Journal of International Business Studies, Palgrave Macmillan, vol. 27(4), pages 753-779, December.
- Vijay Pothukuchi & Fariborz Damanpour & Jaepil Choi & Chao C Chen & Seung Ho Park, 2002. "National and Organizational Culture Differences and International Joint Venture Performance," Journal of International Business Studies, Palgrave Macmillan, vol. 33(2), pages 243-265, June.
- Roberto A. Weber & Colin F. Camerer, 2003. "Cultural Conflict and Merger Failure: An Experimental Approach," Management Science, INFORMS, vol. 49(4), pages 400-415, April.
- Cláudia Frias Pinto & Fernando Ribeiro Serra & Manuel Portugal Ferreira, 2014. "A bibliometric study on culture research in International Business," Working Papers 107, globADVANTAGE, Polytechnic Institute of Leiria.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.