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Post-cross-border acquisitions: Implementing 'national culture-compatible' strategies to improve performance

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  • Morosini, Piero
  • Singh, Harbir

Abstract

From a survey of 400 companies engaged in cross-border acquisitions in Italy, Piero Morosini and Harbir Singh test several hypotheses which demonstrate that a 'national culture-compatible' post-acquisition strategy implemented by the acquiring company to interact and be coherent with the target company's national culture, can significantly improve cross-border post-acquisition performance. The authors focus on two national culture dimensions: uncertainty avoidance and individualism. Although the characteristics of the sample of companies used make the conclusions best suited to either Italian acquirers in the US or Western Europe or vice versa, the research does point out some unique aspects of generic interest for cross-border M&A activity. The results may also have important implications at the corporate culture levels.

Suggested Citation

  • Morosini, Piero & Singh, Harbir, 1994. "Post-cross-border acquisitions: Implementing 'national culture-compatible' strategies to improve performance," European Management Journal, Elsevier, vol. 12(4), pages 390-400, December.
    • Handle: RePEc:eee:eurman:v:12:y:1994:i:4:p:390-400
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    Cited by:

    1. Reynolds (née Schnurr), Noelia-Sarah & Teerikangas, Satu, 2016. "The international experience in domestic mergers – Are purely domestic M&A a myth?," International Business Review, Elsevier, vol. 25(1), pages 42-50.
    2. Valentina Cioli & Alessandro Giannozzi & Valentina Ippoliti & Oliviero Roggi, 2021. "Cross-Border M&A and Financial Performance: Empirical Evidence on Bidder/Target Companies," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(4), pages 1-67, July.
    3. Diane Fulton & Richard Fulton & Thomas Garsombke, 2021. "The 3/2 Country Market Evaluation Model: Inclusive Emerging Market Paradigm," Journal of International Business Research and Marketing, Inovatus Services Ltd., vol. 6(5), pages 11-16, July.
    4. Durand, Muriel, 2016. "Employing critical incident technique as one way to display the hidden aspects of post-merger integration," International Business Review, Elsevier, vol. 25(1), pages 87-102.
    5. Slađana Savović, 2016. "The Post-Acquisition Performance Of Acquired Companies: Evidence From The Rebulic Of Serbia," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 61(209), pages 79-104, April - J.
    6. Lim, Jongha & Makhija, Anil K. & Shenkar, Oded, 2016. "The asymmetric relationship between national cultural distance and target premiums in cross-border M&A," Journal of Corporate Finance, Elsevier, vol. 41(C), pages 542-571.
    7. Alexandridis, George & Hoepner, Andreas G.F. & Huang, Zhenyi & Oikonomou, Ioannis, 2022. "Corporate social responsibility culture and international M&As," The British Accounting Review, Elsevier, vol. 54(1).
    8. Guidi, Marco & Sogiakas, Vasilios & Vagenas-Nanos, Evangelos & Verwijmeren, Patrick, 2020. "Spreading the sin: An empirical assessment from corporate takeovers," International Review of Financial Analysis, Elsevier, vol. 71(C).
    9. Magnani, Giovanna & Zucchella, Antonella & Floriani, Dinorá Eliete, 2018. "The logic behind foreign market selection: Objective distance dimensions vs. strategic objectives and psychic distance," International Business Review, Elsevier, vol. 27(1), pages 1-20.
    10. Günter K. Stahl & Andreas Voigt, 2008. "Do Cultural Differences Matter in Mergers and Acquisitions? A Tentative Model and Examination," Organization Science, INFORMS, vol. 19(1), pages 160-176, February.
    11. Jesse A Ellis & Sara B Moeller & Frederik P Schlingemann & René M Stulz, 2017. "Portable country governance and cross-border acquisitions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(2), pages 148-173, February.
    12. Kedia, Ben L. & Reddy, Rama Krishna, 2016. "Language and cross-border acquisitions: An exploratory study," International Business Review, Elsevier, vol. 25(6), pages 1321-1332.
    13. Yanga, Shuying & Kim, Seongcheol, 2017. "Do Cross-border M&As by Chinese Media and Entertainment Firms Create Value? Evidence from US-targeted and Korea-targeted Deals," 14th ITS Asia-Pacific Regional Conference, Kyoto 2017: Mapping ICT into Transformation for the Next Information Society 168549, International Telecommunications Society (ITS).
    14. Grimpe, Christoph, 2005. "Integration and Reorganisation of Industrial R&D: Deficits and Perspectives of Empirical Research," ZEW Discussion Papers 05-88, ZEW - Leibniz Centre for European Economic Research.
    15. Katz, Jeffrey P. & Katz, Jeffey P. & Simanek, Astrid & Townsend, James B., 1997. "Corporate mergers and acquisitions: One more wave to consider," Business Horizons, Elsevier, vol. 40(1), pages 32-40.
    16. Yaakov Weber & Shlomo Yedidia Tarba & Ziva Rozen Bachar, 2012. "The effects of culture clash on international mergers in the high tech industry," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 8(1), pages 103-118.
    17. Günter K. Stahl & Chei Hwee Chua & Amy L. Pablo, 2012. "Does National Context Affect Target Firm Employees’ Trust in Acquisitions?," Management International Review, Springer, vol. 52(3), pages 395-423, June.

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