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Impact of organizational cultural differences on mergers and acquisitions performance: Quantitative study of Chinese firms

Kan Shi (Institute of Psychology, University of the Chinese Academy of Sciences, Beijing, China and Department of Psychology, Renmin University of China, Beijing, China)
Xiaoqian Liu (Institute of Psychology, Chinese Academy of Sciences, Beijing, China)
Chengjun Yang (School of Economics and Management, University of the Chinese Academy of Sciences, Beijing, China)
Ziping Yao (China Minmetal Corporation, Beijing, China)
Dong Liu (Department of Psychology, Renmin University of China, Beijing, China)

Journal of Chinese Human Resource Management

ISSN: 2040-8005

Article publication date: 8 May 2017

Abstract

Purpose

Drawing upon the theory of organizational commitment and relative standing, this study aimed to develop an integrative model to examine how organizational cultural differences impact on mergers and acquisitions (M&A) performance.

Design/methodology/approach

The study used regression analysis and moderated path analysis to test the hypothesis with a sample of 103 executives from 49 firms acquired by Chinese state-owned enterprises.

Findings

The paper arrives at the conclusion that the executives’ organizational commitment mediated the association between organizational cultural differences and M&A performance. Besides, the authors also confirmed the moderator role of relative standing.

Practical implications

The paper suggests ways that can help practitioners better eliminate cultural differences obstacles during the M&A by presenting an integrative framework and showed an actual Chinese case.

Originality/value

This study contributes to the M&A literature by developing an integrative model to explain the complexity between organizational cultural differences and M&A performance with a Chinese executive sample.

Keywords

Acknowledgements

This paper was supported by National Nature Science Foundation of China (NSFC No. 71272156) and the National Social Science Foundation of China (NSSFC No. 10AGL003).

Citation

Shi, K., Liu, X., Yang, C., Yao, Z. and Liu, D. (2017), "Impact of organizational cultural differences on mergers and acquisitions performance: Quantitative study of Chinese firms", Journal of Chinese Human Resource Management, Vol. 8 No. 1, pp. 40-52. https://doi.org/10.1108/JCHRM-07-2016-0011

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited