3. ProQuestDocuments-2018-12-17

The Impact of Differences in National Cultures on
Mergers and Acquisitions
Laimona Sliburyte . Organizacijø Vadyba: Sisteminiai Tyrimai ; Kaunas Iss. 33, (2005): 197-211.
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The aim of this article is to provide a better understanding of the impact of national culture on the integration phase of
cross-border mergers. Other similar studies that have investigated national culture most often have concentrated on whether
there are differences between national cultures or not. The author has accepted the fact that there are differences in national
culture and has rather focused on how these differences influence the integration phase of cross-border mergers.
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The aim of this article is to provide a better understanding of the impact of national culture on the integration phase of
cross-border mergers. Other similar studies that have investigated national culture most often have concentrated on whether
there are differences between national cultures or not. The author has accepted the fact that there are differences in national
culture and has rather focused on how these differences influence the integration phase of cross-border mergers.
Keywords: mergers and acquisitions, merging process, culture, national culture, culture related factors, Hofstede's
Sio straipsnio tikslas yra placiau panagrineti nacionalines kulturos poveiki integracijos stadijoje susijungiant imonems.
Ankstesniuose tyrimuose buvo nagrinejama, ar egzistuoja nacionalines kulturos skirtumai. Siame tyrime nagrinejama, kaip
egzistuojantys nacionalines kulturos skirtumai itakoja besijungiancias organizacijas integracijos stadijoje.
Raktazodziai: susiliejimas ir isigijimas, susiliejimo proccsas, kultura, nacionaline kultura, su kultura susije veiksniai, G. H.
Hofstedes dimensijos.
Enlarge this image.
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The topicality and problem. The most complicated kind of consolidations is mergers, since both operational and managerial
functions need to blend and a third culture has to be created. Moreover, the integration phase is where most problems arise
during the merging process.
These problems are often related to culture. In international mergers an "us" versus "them" attitude is commonly created
during this phase. The persistence to change original identities into a new and common identity or culture stays long within
the organization after the deal is settled.
A survey conducted on the financial performance of mergers found that cultural differences had a great impact on the
economic outcome of the deal and that the differences could originate from national culture, organizational culture or a
combination of both (Eneroth, Larsson, 1996). Cultural differences between the merging organizations frequently lead to
misunderstandings, trigger off emotional reactions, and cause conflicts. The greater the differences between the two
merging companies, the more likely it is that cultural clashes occur. In another survey conducted by Booz, Alien and
Hamilton of European CEOs, "the ability to integrate the new company was ranked as the most important factor in
acquisition success, ahead of financial and strategic factors" (Weber, 1996).
Multinational corporations need to have an understanding of how the national differences influence business relationships,
because different cultures prefer different rules and administrative procedures (Very, Lubatkin, Calori, 1996). Also the
national culture will influence the type of culture and style of work organization companies will adopt (i.e. the
organizational culture). Since culture is invisible it is difficult to define or measure. Therefore the cultural aspect of M&As
is not as thoroughly investigated as other more tangible aspects are. Even though two countries seem to share a cultural
similarity it might only be on the surface. The actual differences can cause more difficulties than if the two parties had been
aware of the difficulties from the beginning.
Many agree that cultural clashes are likely to be more salient in international mergers, since they have to deal with
organizational as well as national cultural differences, however, the majority of the studies focus on domestic mergers and
hence also on differences in organizational cultures (Eneroth, Larsson, 1996; Very, Lubatkin, Calori, 1996). Few empirical
studies have been conducted that investigate the corporate and national cultural clashes where they are the most visible,
thus in international mergers (Weber, Shenkar, Raveh, 1996). R. Calori, M. Lubatkin and P. Very ( 1994) also point to the
fact that international M& As have been little researched and especially the integration practices. Y. Weber, O. Schenkar
and A. Raveh (1996) state that there is no reason to believe that the impact of national culture clashes will be less important
than that of corporate culture clashes. Therefore national culture is considered a crucial factor in mergers and acquisitions.
The object of the paper. National culture.
The aim of the paper. The purpose of this study is to investigate the impact of national culture on the integration phase of
cross-border mergers.
The research questions. In order to achieve the aim there have been stated four research questions:
* How do differences in individualism/ collectivism influence the organization during the integration phase of cross-border
* How do differences in power distance influence the organization during the integration phase of cross-border mergers?
* How do differences in masculinity/femininity influence the organization during the integration phase of cross-border
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* How do differences in uncertainty avoidance influence the organization during the integration phase of cross-border
The research methods. There have been applied methods of scientific literature analysis and generalisation, comparable
analysis, and systematic analysis.
Mergers and Acquisitions as Corporate Strategy
Mergers and acquisitions (M&As) are a considerable alternative to internal growth of companies since they make it
possible for firms to quickly penetrate new and foreign markets, earlier take advantage of economies of scale and acquire
necessary know-how and skilled personnel. The reasons for engaging in M&As have changed during the years. The main
reasons during the 1980's were to enter new markets and to accomplish corporate growth by merging with firms in
unfamiliar industries. However, during the 1990's the reasons have been somewhat different. Nowadays companies are
concentrating more on their core activities, thus they merge with companies within the same industry.
The terms "mergers" and "acquisitions" tend to be treated synonymously. However, there is a legal difference in the
transaction. An acquisition occurs when an organization acquires sufficient shares to gain control/ ownership of another
organization (Cartwright, Cooper, 1996). A merger refers to when two companies consolidate and form a new entity. It
takes place after an agreement between the two parties, however, not necessarily on equal terms since one of the parties
often gain a dominant position.
M&A deals are usually very complex. Therefore there is no reason to believe that the motives and strategies would be less
complex. There are several different motives for M&As although the main objective for all consolidations is to improve
and strengthen its financial state. This is known as the "synergy effect". These synergies can be in form of increased
efficiency, economies of scale, widening of markets, greater purchasing power and hence, lead to substantially increased
profitability (Cartwright, Cooper, 1996). M&As also allow a high level of research and development expenditures. The
organizational motives refer to the spread of risk as well as the possibility to buy another company and thus avoid being
bought. The personal motives are related to rewards, which are often financial and commonly gained from expansion.
However, the outcome of M&As does not only depend on these financial and strategic factors. Other determinants for
success that are mentioned are changes in the environmental conditions, such as changes in the market conditions,
technological developments, and government policy. These factors become even more crucial in international M&As. Also
the "soft factors", or the characteristics of the partner, not related to finance or strategy are important and often forgotten
The Merging Process
The outcome of M&As is dependent on how well the two parties manage the three stages of the merging process (Neal,
1998): ^Negotiation phase; 2) Planning phase; 3) Integration phase.
The negotiation phase is the stage prior to the announcement of an agreement of a merger or acquisition. This phase can
sometimes take very long time - up to several years in some cases. A part of this phase is the "due diligence" where the two
parties examine each other.
The second stage of the merging process is called the planning phase and is also referred to as the time of the engagement.
During this stage the merging parties remain as two separate legal entities and have to deal with three processes
simultaneously, a) the legal process, which sometimes needs the approval of the authorities and can therefore be time
consuming and lead to severe perturbations; b) business as usual, which means that the merging parties have to take care of
the every-day work while waiting for the eventual merger to take place; c) the integration process, which involves
decision-making in questions such as organization structure, management of the merger, appointment chiefpositions.
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The final stage is known as the integration phase or the phase where the new company is making the marriage work. The
management often believes that the deal now is settled and therefore less time and energy is spent on integrating the two
Even if the deal, in the earlier stages, seems to achieve synergies, problems that might interfere with the initial goals often
occur during this integration phase (Adler, 1997; Cartwright, Cooper, 1996). The integration of two separate organizations
with different traditions and backgrounds into a single unit is frequently considered as a difficult and timeconsuming
process. Conflicts between the two merging parties can also be observed during this integration phase. R. Olie (1990)
claims that merger failures are frequently due to the problems during the integration phase and that these problems are
often culture- and personnel related. Estimations show that a shortcoming in the integration phase causes one third of all
merger failures.
Culture Related Factors Influencing the Performance of M&As
According to R. Olie ( 1994), the problems that appear to be the cause of merger failures are both of organizational and
national cultural nature. Hence, depending on the industry and the nationality of the merging firms, it is more or less
complicated to combine the two organizations. There are three important culture related factors that influence the
performance of M&As. These are (1 ) the degree of integration between the two organizations; (2) the kind of cultural
exchange and (3 ) the extent to which the own cultural identity of the firm is valued and the other firm ' s culture is
regarded as attractive.
1. The first factor, the degree of integration, can be either weak or strong and ranges from financial integration to
operational integration. The latter involves more important changes for the target firm or the partner firm and therefore the
cultural differences are more obvious. Thus, as the degree of post-merger integration increases, the risk of failure of the
combination due to organizational divergence increases.
Consequently, M&As with a high level of interaction between the two parties involve a greater conflict potential compared
to consolidations with a low level of interaction. M&As between unrelated companies demand little integration of the
operations and the resources. Related M&As on the contrary require a high degree of integration in order to reach the
synergy goal.
2. When discussing the second factor, the kind of 'cultural exchange, R. Olie (1994) is referring to the degree of
acculturation. Every mode of acculturation leads to some kind of conflict. He further mentions that there are two extremes;
assimilation and integration. In the majority of M&As the culture, practices and identity of the acquiring firm is transmitted
to the acquired company. The acquired company becomes a part of the parent company and commonly loses its corporate
identity. This is referred to as assimilation. When there is a mutual exchange of cultural elements, it refers to integration.
Four different types of M&As can be found by combining the integration mode and the
acculturation/co-operation-dominationmode. These four types of M&As announce the kind of difficulties in the
post-merger integration, particularly the culture related problems, and to what extent these occur. These four types are
shown in the picture below:
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Enlarge this image.
Portfolio. As it has been already mentioned, the motives, expectations and bargaining power are factors influencing the
positioning of organizational combinations. The upper left corner of the matrix shows M&As, which have dominant modes
of co-operation and which also have a low extent of integration with the acquiring firm. These combinations are mostly
found in unrelated/conglomerate mergers. In these cases the acquiring firm leaves the acquired firm alone and makes only
minor changes in its operations or management.
Merger. The type of consolidation that is mayb2e the most complicated is the merger. Here the two companies are next to
equal and the intention is to blend the operational as well as managerial functions. In this case the two parties have to
develop a third culture, hence both companies need to change its corporate identity and organizational culture.
Absorption. The third and the most common type of M&As is the absorptive acquisition. In this type as well as in mergers
the main intention is to create synergies. Integration is therefore of great importance. In absorptive acquisitions there is a
clear power difference between the two parties.
Redesign. In the last type of M&As the intention is not to reach synergies, still the acquirer may impose its management
style on the acquired firm and the management of the acquired firm is often replaced. Also in this case there is a great
power distance between the two parties.
In sum, the role of problems related to culture will be less important in unrelated mergers or acquisitions compared to
related M&As. In related mergers, where a high degree of integration is required, changes in both organizations take place
and a third culture has to be developed in order to overcome disagreements. In acquisitions (redesign and absorption
consolidations) on the other hand, it is only the acquired firm that undergoes changes. There is one dominant culture that
has to be accepted because of the power differential. In these types of consolidations, the impact of cultural differences
depends on a third factor:
3. The extent to which the own cultural identity of the firm is valued and the other firm's culture is regarded as attractive.
The problems during the integration phase are generally less serious as long as the two merging parties have similar wishes
and needs. If the consolidation, however, leads to the loss of the acquired firm's cultural identity, complications will arise.
Problems will also appear if the acquiring company's culture is not highly valued by the acquired company, as in the case
of hostile take-overs. Even when companies give up their identity freely, this may happen when the members of an
organization consider that their culture act as a barrier to the organizations performance, problems will arise. Members of
an organization that are forced to abandon their identity become resistant. This in turn results in a bifocal culture with an
"inside group" (old members) and an "outside group" (new members).
So far, we have mainly focused on why mergers and acquisitions take place, what they are and how they occur, i.e. the
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different merging stages and types of consolidations. We have however said little about the international aspects of M&As.
Cartwright and Cooper (1996) argue that in domestic M&As the focus is primarily on similarities and differences in
corporate cultures and their relevance to inter-organizational combinations. However, in M&As that take place at an
international level one has to take into account differences in national cultures as well. Galley ( 1996) have developed a
model, which is reproduced below.
Enlarge this image.
The figure shows the relative impact of corporate versus national culture clashes on the integration phase and the outcome
of the consolidation. The authors say that one can expect that domestic M&As, with similar corporate cultures, have the
highest degree of acculturation whereas cross-border M&As, with different corporate cultures, have the lowest. They
further assert that in cross-border M&As, national culture disparities can constitute additional barriers besides
organizational culture differences and therefore provoke a dual clash.
A. F. Buono and J. L. Bowditch (1989) assert that culture is a multifaceted word, which has been highly criticized since it
can be defined in many different ways. The authors also mention that 164 different definitions of culture were actually
found by H. Deresky ( 1997). M. Neal ( 1998) mentions four different definitions of culture. Eneroth &Larsson (1996)
defines culture as "the customs beliefs, art and all the other products of human thought made by a particular group of
people at a particular time". Collins English Dictionary, on the other hand, says that culture is "the total of the inherited
ideas, beliefs, and knowledge, which constitute the shared bases of social action". A third definition of culture, made by
Fons Trompenaar, is "a shared system of meanings". According to G. H. Hofstede (1997), culture is "the collective
programming of the mind which distinguishes the members of one human group or category of people from another".
One characteristic of culture is that it creates a kind of ethnocentrism. Many aspects of our culture are unknown to us until
we study other cultures, and become aware of the cultural differences. This unconsciousness of one's own cultural values is
called a self-reference criterion. Being aware of one's own culture would, however, help to avoid becoming parochial or
ethnocentric (Deresky, 1997). The term parochialism is used to describe a person who only sees the world through his/ her
own perspective. He/she is unable to recognize that other people have different ways of living and working and that
consequences emanating from differences in culture can cause serious problems.
The word "culture" is used both for nations and organizations, which can be misleading, since the two types of culture are
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of different natures. Hence, it would be wrong to compare a nation to an organization. National and corporate cultures
differ in terms of the role that the manifestations of culture (symbols, heroes, rituals, and values) play in each (Adler,
1997). It is said that national cultures are growing more similar, and similarities are frequently found in practices such as in
symbols (e.g. we like the same fashion and buy the same products), in heroes (e.g. we watch the same television shows and
movies) and in rituals (e.g. we perform the same sports and leisure activities).
G. H. Hofstede is the most influential scholar in the development of a theory of national work related culture (Gatley,
Lessem, Altman, 1996; Cartwright, Cooper, 1996). In order to measure the values of one culture relative to other cultures
he found four dimensions of Western national culture, namely individualism/collectivism, power distance,
masculinity/femininity, and uncertainty avoidance. "A dimension is an aspect of a culture that can be measured relative to
other cultures"(p .14).
Manifestations of Culture
When two companies are merging, it is highly relevant to have knowledge about the other party's corporate and national
culture. Culture is manifested at different levels and many terms have been used to describe the manifestations of culture,
however, according to G. H. Hofstede ( 1991 ) the following four cover them all in a structured way:
* Symbols
* Heroes
* Rituals
* Values
The "onion diagram" below illustrates the skins of an onion. As one move towards the upper skin of the onion, the
manifestations of culture become more superficial. Thus values are the deepest and symbols are the most superficial
manifestations of culture, with heroes and rituals in between.
Symbols, heroes, and rituals are also referred to as practices, since these factors are observable. Values, however, are
difficult to detect due to their implicit nature, but can be understood by the way people behave. The values are the core of
the culture and are therefore placed in the centre of the onion. (Hofstede, 1991)
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Enlarge this image.
Words, gestures, pictures, and objects that have a specific meaning within a culture are all called symbols. Other
manifestations belonging to this category are the words in a language or jargon as well as the way one dress, hairstyles,
brands, flags, and status symbols. As new symbols frequently appear and replace old ones, and cultural groups often copy
other groups ' symbols, the symbols are placed in the outer layer of the onion diagram.
A hero is a person, dead or alive, real or imaginary, that is a role model for attitudes and behaviors. What he represents or
stands for is highly valued in a culture. The hero can also be referred to as a kind of a symbol.
Rituals are activities that occur within an organization that might be necessary for the social needs of the employees such
as confidence, morale, and people's sense of identification and motivation. Examples of rituals are ways of greeting and
paying respect to others as well as social and religious ceremonies. Business and political meetings are often considered
rational, however the underlying purpose may be ritual, e.g. giving the leaders the opportunity to assert themselves.
In the "onion diagram" above, which refers to the different manifestations of culture, the values are placed in the centre and
represent the core of the culture. According to R. Olie (1990) these values also relate to national culture.
National Culture and Hofstede's Four Dimensions
International mergers become more complex due to the different national cultures. In domestic mergers the main focus is to
compare the different corporate cultures whereas the focus in international mergers tends to be on differences in national
cultures. These differences can serve as potential barriers to integration of the two merging parties.
According to N. J. Adler (1997) many managers are of the opinion that organizational culture moderates or erases the
influence of national culture. They believe that employees within the same organization, although they have different
nationalities, are more similar than different. They also assume that national differences are only of importance when
working with foreign clients, not when working with international colleagues within the same organization. However, this
is not the case since employees and managers bring their ethnicity to the workplace.
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Individualism refers to societies where the individuals look after his or hers interests. Collectivism, however, refers to
societies that are group oriented with strong ties between the group members. In these societies members receive protection
in return for loyalty.
Enlarge this image.
In a nation characterized by individualism the personal performance is the most relevant. Each individual is responsible for
his own work, accept this fact and expect to be evaluated on his own performance. Loyalty to organizations in
individualistic nations only remains as long as the individual him/herself can benefit from it(Very,Lubatkin,Calori, 1996).
On the contrary, nations characterized by collectivism more often have group assignments where the group rather than each
individual is responsible for the work performance and hence also share the rewards. These societies also try to seek
consensus in decisionmaking and plans are often formulated with a concern for the health and well-being of the employees,
community, and society at large.
When a person is hired in a collectivist country he/she always belongs to a "wegroup" or an "in-group". The employees'
interest does not always coincide with his or her interest, but the person will act according to the interest of the in-group.
Hiring a person that is a relative to the employer or another employee reduces the risk and hence is often the case in
collectivist societies. The money owned in such a country is often shared with relatives (Hofstede, 1994).
Also the management differs between individualist societies and collectivist societies. The management in an individualist
society refers to the management of individuals. Management in a collectivist society on the other hand refers to the
management of groups.
Table 1 below shows an overview of the consequences of differences in individualist/ collectivist scores for work and
organizations made by S. Galley, R. Lessem and Y. Altman (1996).
Power Distance
This dimension refers to how the power is distributed between manager and subordinate as well as the acceptance and
expectance of inequality of power. In high power distance cultures the manager has substantially more power compared to
the subordinates. In low power distance cultures individual autonomy tends to be of greater importance (Cartwright,
Cooper, 1996).
In countries with high power distance formal and hierarchical organizational designs are the most appropriate. In countries
where the power distance is low a more organic organizational structure is more suitable.
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Enlarge this image.
In large power distance countries subordinates expect to be told what to do. The organizations are very hierarchical with
many supervisors that report to each other. There are great differences in salaries between the top and the bottom of the
organizations. The workers are not highly educated and the manual work has a much lower status than office work.
In countries with small power distance the subordinates and superiors consider each other equal in terms of existence. The
hierarchical systems' purpose is only to make it more convenient to divide up the roles and show the inequality of the
different roles. The organizations are usually flat and there are only limited numbers of supervisory personnel. The
differences between salaries for top and bottom jobs within the organization are fairly small. The workers are highly
qualified; the high-skill manual jobs do however have higher status than low-skill office work. In organizations with low
power distance the superior are accessible for subordinates. The superior is the one making the final decisions, however the
subordinates expect to be consulted before the decision is made if it concerns their work (Hofstede, 1991).
In Table 2 an overview of the consequences of differences in power distance scores for work and organizations is provided.
It is reproduced from S. Galley, R. Lessem and Y. Altaian (1996).
Masculine cultures are characterized by ambition, assertiveness, decisiveness and the desire to gain recognition by
performing well and increase earnings. Also, the quantity of things is more valued than the quality of life. In contrast,
feminine cultures are seeking consensus and value the interpersonal relationship, the environment and a sense of service.
In masculine countries the employees are motivated by the achievement needs. The manager expects the employees to get
the job done on time, even at the expense of family and social concerns. The employees are therefore expected to work
long days in the case of time constraint. The people of these countries have a belief that "you live in order to work". In
order to perform well the employees need to know what is expected from them and rewards are given if they meet the
expectations and further improve their performance (Very, Lubatkin,Calori, 1996).
In countries characterized by femininity the motivation is gained from social needs rather than by achievement needs.
When operational decisions are made the focus is on work satisfaction and the development of a supportive work
environment. Flexible working hours enables employees to handle their personal and family obligations. Additionally, the
managers are appreciated for their ability to find a balance between co-operation and achievement
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Enlarge this image.
Masculine countries believe that a good fight should solve conflicts. Feminine countries on the other hand prefer to
compromise and negotiate in order to solve conflicts. Organizations in masculine countries find results to be of great
importance and therefore rewards are based on performance. Feminine countries tend to give rewards according to the need
(Hofstede, 1997).
Also the management hero types differ between masculine and feminine countries. In masculine countries the managers are
assertive, decisive and aggressive. They are also the ones making the decisions and are often a little macho. In feminine
cultures the manager is less visible, intuitive and accustomed to seeking consensus. However in both the different cultures
the manager should be resourceful and believed to have above average intelligence and drive.
Table 3 shows an overview of the consequences of differences in masculinity/femininity scores for work and organizations
made by S. Gatley, R. Lessem and Y. Altman ( 1996).
Uncertainty Avoidance
This dimension refers to the need for formal rules and regulations. A society with high uncertainty avoidance wants to be in
control, and therefore the need for formal rules and regulations is high. On the contrary, a society with low uncertainty
avoidance is more willing to take risks and therefore the state of uncertainty is not considered a problem.
In countries with high uncertainty avoidance the planning process is important and therefore a lot of time is spent on this
exercise. People of these countries view planning as a way to anticipate uncertainties and establish detailed contingency
plans to deal with "what ifs". Hence, decision-making is not rush, rather is a slow process. Moreover, the leaders receive
respect if they make clear statements and orders regarding what the employees are expected to do. The employees are loyal
to the company as long as they are sure to be provided with a long-term employment.
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Enlarge this image.
In countries with low uncertainty avoidance the opinion of uncertainty is that it cannot be controlled and planned away.
Consequently, the management style is often focused on flexibility since the employees are open for changes in their work
practice in order to improve the company's performance.
People in high uncertainty avoidance countries like to be busy and to work hard. "Life is hurried and time is money".
People in low uncertainty avoidance countries on the contrary do not have the need for constant activity and enjoy relaxing,
but can work hard if necessary. Time is needed in order to orient oneself, however it is not constantly watched (Hofstede,
In high uncertainty avoidance countries there is an emotional need for laws and rules. People in such a culture feel comfort
in structured environments and believe that as little as possible should be left to chance. In low uncertainty avoiding
countries rules are only established if they are necessary. People in these societies often feel proud over that they can solve
many problems without formal rules.
In Table 4 below there is provided an overview of the consequences of differences in uncertainty avoidance scores for
work and organizations. It is reproduced from S. Gatley, R. Lessem and Y. Altman ( 1996).
J-C. Usunier ( 1993) has gathered the scores of each dimension gained from 50 countries and three regions in one table. A
low score in a dimension symbolises that the society has few characteristics of that dimension. For instance, if a society
ranks low on the masculinity scale, it means that the country has more feminine features. Likewise, if a society ranks high
on the power distance scale, it means that it has many features of a high power distance society.
1. The outcome of mergers and acquisitions dependent on how well the two parties manage the three stages of the merging
process: 1) negotiation phase; 2) planning phase; 3) integration phase.
2. There are three important culture related factors that influence the performance of the mergers and acquisitions. These
are (1) the degree of integration between the two organizations; (2) the kind of cultural exchange and (3) the extent to
which the own cultural identity of the firm is valued and the other firm's culture is regarded as attractive.
3. Four different types of mergers and acquisitions can be found by combining the integration mode and the
acculturation/cooperation-domination mode: portfolio; merger; redesign; absorption. These four types of mergers and
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acquisitions announce the kind of difficulties in the post-merger integration, particularly the culture related problems, and
to what extent they occur.
4. National cultures are shaped by tradition. They also reflect economic and social history as well as climate and other
demographic conditions. By studying national differences in a cultural context, G. H. Hofstede found four relevant key
dimensions, namely: individualism/collectivism, power distance, masculinity/ femininity, and uncertainty avoidance.
5. When engaging in cross-border mergers companies have to deal both with differences in organizational and in national
cultures. Many managers believe that organizational culture moderates or erases the influence of national culture. This is
however not the case since employees and managers bring their ethnicity to the workplace. Therefore, the managers in
cross-border mergers should realize the importance of understanding the other party's national culture before the merger in
order to prevent conflicts. Further, the managers have to be aware of that even when they believe that there are no or little
differences between the national cultures of the merging parties because serious consequences may follow. Differences that
seem to be minor at first may result in significant changes for the organization.
6. When other studies have investigated national culture they have often concentrated on whether there are differences
between national cultures or not. In this paper the author has accepted the fact that there are differences in national cultures
and rather focused on how these differences influence the integration phase of cross-border mergers.
This study was limited in the sense that it dealt only with aspects regarding national culture. Still, it would be interesting to
conduct a study investigating the impact of both organizational and national culture on companies engaging in cross-border
mergers. Another area of interest would be to investigate how companies that are engaged in cross-border mergers deal
with the problems owing to a culture clash. Also, it would be interesting to study how they prevent a culture clash.
Straipsnio tikslas yra placiau panagrineti nacionalines kulturos poveiki integracijos stadijojc, vykdant susijungimus
imonese. Ankstcsniuosc tyrimuosc buvo nagrincjama ar egzistuoja nationalities kulturos skirtumai. Savo tyrime mes
nagrinejome kokia butent itaka daro egzistuojantys nacionalincs kulturos skirtumai integracijos stadijojc besijungtaneiosc
Labiausiai komplikuota konsolidacijos ruais yra susivicnijimai, kadangi rcikia apjungti vadybincs ir operacincs funkcijos
tarn, kad sukurtumcmc bendra_ kultura Bc to, integracija tai yra tas etapas, kur iSkyla daugiausiai susivienijimo problcmij.
Tos problemes daznai yra susijusios su kultura. Tarptautiniuose susijungimuose poziuris "mes" prieS "juos" dazniausiai
susiformuoja butent Siame etape. Multinacionalincs korporacijos turi tureti suvokima, kaip nacionaliniai skirtumai daro
jtaka. vcrslo rysiams, kadangi skirtingosc kulturose taikomos skirtingos taisyklcs ir administravimo procedures (Very,
Lubatkin, Calori, 1996). Kadangi kultura ncra matoma, todel sunku ja nustatyti ar iSmatuoti, kaip teigia S. Cartwright ir C.
L. Coper (1996). Del sios priezasties, kulturinis susijungimo aspektas nera taip nuodugniai tiriamas, kaip kiti daugiau
matomi (apciuopiami) aspektai. Dvi Salys gali atrodyti turincios panaSia. kultura. tik is pirmo zvilgsnio. Egzistuojantys
kuituriniai skirtumai gali buti priezastimi didesniu sunkumq nei dvi dalys mane esant susijungimo pradzioje (Daniel, 1999).
Susivienijimo rczultatas priklauso nuo to kaip sekmingai dvi dalys (salys) sugebes pereiti tris pagrindinius susijungimo
proceso ctapus (Neal, 1998): derybu etapas, planavimo etapas ir integracijos etapas. Derybu etape pirmiausiai paskelbiama
apie imoniii susijungima ar isigijima.. Kartais Sis etapas gali uztrukti gan ilgai, atskirais atvejais netgi iki keleriu metu.
Antrajame etape dvi juridiSkai savarankiJkos dalys (dvi imoncs) tuo pat metu turi deretis del triju dalyku: tcisinio proccso,
vcrslo klausimu. ir integracijos proccso (sprcndimn pricmimas del organizacines strukturos, susijungimo valdymo).
17 December 2018
Page 13 of 17
Paskutiniame, integracijos ctapc, naujoji imonc pradeda savo veikla.
Kaip tcigia R. Olie (1990), atsirandancios susivienijimo problcmos gali buti salygojamos tick ir paties susijungimo
ncsckmiij, tick ir nacionalincs kulturos prigimtics. Autorius iSskiria tris svarbiausius su nacionaline kultura susijusius
vciksnius: integracijos laipsnis tarp dvicji( organizacijn, kulturiniii pasikeitimu, rusis, mastas, kuriuo firmos savo kulturos
identitctas yra vertinamas ir kitos firmos kulturos patrauklumo paisymas.
Nacionalincs kulturos yra susiformavusios jtakojamos tradiciju. Kulturos atspindi ckonomincs ir socialincs kulturincs
sajygas, taip pat kaip ir klimata, bei kitas dcmografincs sajygas. Studijuodamas nacionalinius skirtumus kulturos kontckstc,
G. H. Hofstede (1991) nustatc keturias ticsiogiai susijusias dimensijas: individualizmas/kolcktyvizmas, galios distancija,
vyriSkumas/moteriSkumas, nezinomybcs vengimas.
Straipsnyjc plaeiai isnagrincta zinomiausiu autoriu, tokiu kaip H. Dcrcsky (1997), M. Ncal (1998), J-C. Usunier (1993), Y.
Weber (1996) ir kt. darbai analizuojantys nacionalincs kulturos povciki integracijos stadijojc vykdant susijungimus
Enlarge this image.
Enlarge this image.
1. Adler, N. J. (1997). International Dimensions of Organizational Behavior. Third edition. Southwestern College
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Publishing, Cincinatti, Ohio.
2. Buono, A. F., Bowditch, J. L. (1989). The Human Side of Mergers and Acquisitions: Managing Collisions between
People, Cultures, and Organizations. Jossey-Bass Inc., Publishers, San Fransisco and Jossey-Bass Ltd., London.
3. Calori, R., Lubatkin, M., Very, P. (1994). Control Mechanisms in Cross-border Acquisitions: An Internat // Organization
Studies, Vol. 15, No 3
4. Cartwright, S., Cooper, C. L. (1996). Managing Mergers and Acquisitions and Strategic Alliances - Integrating People
and Cultures. Butterworth - Heinemann Ltd., Oxford.
5. Daniel, T. A. (1999). Between Trapezes: The Human Side of Making Mergers and Acquisitions Work // Compensation
&Benefits Management, Vol. 15, No 1.
6. Deresky, H. (1997). International Management - Managing across borders and Cultures. Second edition. Addison-Weley
educational publishers Inc.
7. Eneroth, K., Larsson, R. (1996). The Human Side of Strategic Change // International Studies of Management
&Organization, Vol. 26, No I.
8. Galley, S., Lessem, R., Altman, Y. (1996). Comparative Management - A Transcultural Odyssey. McGraw Hill Book
Company Europe, Berkshire.
9. Hofstede, G. H. (1997). Cultures and Organizations: Software of the Mind, McGraw-Hill Companies Inc., New York.
10. Neal, M. (1998). The Culture Factor: CrossNational Management and the Foreign Venture. Macmillan Press Ltd.,
11. Olie, R. (1990). Culture and Integration, Problems in International Mergers and Acquisitions, EMJ, Vol. 8, No 2.
12. Olie, R.(1994). Shades of Culture and Institutions in International Mergers // Organization Studies, Vol. 15, No 3.
13. Special Article: How to Merge: After the Deal. (1999, 9th Jan). The Economist Vol 250, No 8101.
14.Usunier, J-C. (1993). International Marketing: a Cultural Approach. Prentice Hall International (UK) Limited,
15.Very, P., Lubatkin, M., Calori, R. (1996). A Cross-national Assessment of Acculturative Stress in Recent European
Mergers // International Studies of Management &Organization, Vol. 26, No 1.
16. Weber, Y. (1996), Corporate cultural fit and performance in mergers and acquisitions, Human Relations, Vol. 49, No 9.
17.Weber, Y., Shenkar, O., Ravch, A. (1996). National and Corporate Cultural Fit in Mergers/ Acquisitions: An
Exploratory Study // Management Science, Vol. 42, No 8.
The paper submitted: January 18, 2005
Prepared for publication: March 1, 2005
Laimona SLIBURYTE - Doctor of social sciences, associate professor at the Department of Marketing, the Faculty of
Economics and Management, Kaunas University of Technology, Lithuania. Address: Laisvcs al. 55, room 301, Kaunas,
17 December 2018
Page 15 of 17
Lithuania. Phone: +370 37 300586. E-mail: [email protected]; Associate professor at the International School of
Management, Lithuania. Address: E.Ozeskienes g.18, Kaunas LT-44254.
Studies; Impact analysis; Culture; Acquisitions &mergers
1220: Social trends &culture; 2330: Acquisitions &mergers;
9130: Experimental/theoretical
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Organizacijø Vadyba: Sisteminiai Tyrimai; Kaunas
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