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National and Corporate Cultural Fit in Mergers/Acquisitions: An Exploratory Study

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Author Info

  • Yaakov Weber

    (School of Business Administration, Hebrew University of Jerusalem, Mount Scopus, Jerusalem 91905, Israel)

  • Oded Shenkar

    (Faculty of Management, Tel Aviv University, Tel Aviv 69978, Israel and College of Business Administration, University of Hawaii at Manoa, Honolulu, Hawaii 96822)

  • Adi Raveh

    (School of Business Administration, Hebrew University of Jerusalem, Mount Scopus, Jerusalem 91905, Israel)

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    Abstract

    While cultural fit has been acknowledged to be a potentially important factor in mergers and acquisitions, the concept has been ill-defined, with no distinction drawn between the national and corporate levels of culture. By examining both international and domestic mergers, the present study assesses the relative role of national and corporate cultural fit in predicting effective integration between merger partners. The innovative, nonparametric co-plot method is introduced, and its main advantage---the simultaneous consideration of both variables and observations---is utilized to explore cultural fit in the two groups of mergers. The findings confirm that national and corporate culture are separate constructs with variable attitudinal and behavioral correlates.

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    File URL: http://dx.doi.org/10.1287/mnsc.42.8.1215
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    Bibliographic Info

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 42 (1996)
    Issue (Month): 8 (August)
    Pages: 1215-1227

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    Handle: RePEc:inm:ormnsc:v:42:y:1996:i:8:p:1215-1227

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    Related research

    Keywords: co-plot; graphic display; corporate cultural; national culture; international and domestics mergers and acquisitions; top management behavior;

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    Cited by:
    1. Ahammad, Mohammad Faisal & Glaister, Keith W., 2013. "The pre-acquisition evaluation of target firms and cross border acquisition performance," International Business Review, Elsevier, vol. 22(5), pages 894-904.
    2. Brock, David M., 2005. "Multinational acquisition integration: the role of national culture in creating synergies," International Business Review, Elsevier, vol. 14(3), pages 269-288, June.
    3. Aurélien Portuese, 2012. "Law and economics of the European multilingualism," European Journal of Law and Economics, Springer, vol. 34(2), pages 279-325, October.
    4. Lindstrand, Angelika & Eriksson, Kent & Sharma, D. Deo, 2009. "The perceived usefulness of knowledge supplied by foreign client networks," International Business Review, Elsevier, vol. 18(1), pages 26-37, February.
    5. Beugelsdijk, Sjoerd & Slangen, Arjen & Maseland, Robbert & Onrust, Marjolijn, 2014. "The impact of home–host cultural distance on foreign affiliate sales: The moderating role of cultural variation within host countries," Journal of Business Research, Elsevier, vol. 67(8), pages 1638-1646.
    6. Renucci, Antoine, 2008. "Access to financing, rents, and organization of the firm," Journal of Corporate Finance, Elsevier, vol. 14(4), pages 337-346, September.
    7. Siti Jeslyn Hasan Author_Email: jeslyn@kelantan.uitm.edu.my & Faizah Mohd Khalid & Raedah Sapingi & Noormala Ahmad, 2011. "What Drives And Crushes Merger And Acquisition? A Review Of Merger & Acquisition Exercise Of Major Companies In Malaysia," 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding 2011-162, Conference Master Resources.
    8. Slangen, Arjen H.L., 2006. "National cultural distance and initial foreign acquisition performance: The moderating effect of integration," Journal of World Business, Elsevier, vol. 41(2), pages 161-170, June.
    9. Drogendijk, Rian & Slangen, Arjen, 2006. "Hofstede, Schwartz, or managerial perceptions? The effects of different cultural distance measures on establishment mode choices by multinational enterprises," International Business Review, Elsevier, vol. 15(4), pages 361-380, August.
    10. Bürker, Matthias & Franco, Chiara & Minerva, G. Alfredo, 2013. "Foreign ownership, firm performance, and the geography of civic capital," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 964-984.
    11. Antoine Renucci, 2008. "Access to financing, rents, and organization of the firm," Post-Print halshs-00365983, HAL.
    12. Froese, Fabian Jintae & Pak, Yong Suhk & Chong, Li Choy, 2008. "Managing the human side of cross-border acquisitions in South Korea," Journal of World Business, Elsevier, vol. 43(1), pages 97-108, January.
    13. Gomes, Emanuel & Cohen, Marcel & Mellahi, Kamel, 2011. "When two African cultures collide: A study of interactions between managers in a strategic alliance between two African organizations," Journal of World Business, Elsevier, vol. 46(1), pages 5-12, January.
    14. Risberg, Anette, 2001. "Employee experiences of acquisition processes," Journal of World Business, Elsevier, vol. 36(1), pages 58-84, April.
    15. Slangen, A.H.L., 2007. "Do Multinationals Really Prefer to Enter Culturally-Distant Countries Through Greenfields Rather than Through Acquisitions? The Role of Parent Experience and Subsidiary Autonomy," ERIM Report Series Research in Management ERS-2007-060-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
    16. Luo, Yadong & Shenkar, Oded, 2011. "Toward a perspective of cultural friction in international business," Journal of International Management, Elsevier, vol. 17(1), pages 1-14, March.
    17. Reus, Taco H., 2012. "Culture's consequences for emotional attending during cross-border acquisition implementation," Journal of World Business, Elsevier, vol. 47(3), pages 342-351.
    18. Dickson, Marcus W. & Castaño, Nathalie & Magomaeva, Asiyat & Den Hartog, Deanne N., 2012. "Conceptualizing leadership across cultures," Journal of World Business, Elsevier, vol. 47(4), pages 483-492.

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