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Book part
Publication date: 26 August 2014

Daniel Rottig, Taco H. Reus and Shlomo Y. Tarba

This chapter aims to make sense of the growing research that examines the role of culture in mergers and acquisitions. We provide a detailed review of the many related but…

Abstract

This chapter aims to make sense of the growing research that examines the role of culture in mergers and acquisitions. We provide a detailed review of the many related but distinct constructs that have been introduced to the literature. While each construct has contributed to our understanding of the role of culture, the lack of connections made among constructs has limited the consolidation of contributions. The review shows what these constructs mean for mergers and acquisitions, what major findings have been discovered, and, most importantly, how constructs interrelate. Our discussion provides several opportunities to foster the needed consolidation of this research.

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-78190-836-5

Keywords

Article
Publication date: 1 March 1994

Rosabeth Moss Kanter and Richard Ian Corn

Argues that, although cultural differences clearly affect relationshipswithin organizations, tensions are often triggered first by othercontextual factors. Presents the…

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Abstract

Argues that, although cultural differences clearly affect relationships within organizations, tensions are often triggered first by other contextual factors. Presents the findings of a study of foreign acquisitions of US firms, and demonstrates how problems between the two partners most often arise out of strategic, organizational, political and financial issues. Describes the factors which determine the success of mergers between partners where different cultural values are involved.

Details

Journal of Management Development, vol. 13 no. 2
Type: Research Article
ISSN: 0262-1711

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Article
Publication date: 16 January 2017

Daniel Rottig

The purpose of this paper is to provide a quantitative integration of the existing empirical body of literature on culture and acquisition performance.

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Abstract

Purpose

The purpose of this paper is to provide a quantitative integration of the existing empirical body of literature on culture and acquisition performance.

Design/methodology/approach

The study is based on a meta-analytical approach that synthesizes 189 effect sizes from 24 independent samples with a total sample size of n=5,496 acquisitions.

Findings

This meta-analytical study found a consistently negative and significant relationship between organizational cultural differences and acquisition performance, and a dual effect of national cultural differences (i.e. cultural distance) on acquisition performance. It further identified significant methodological and contextual moderators and discusses the implications for acquisitions in emerging markets.

Research limitations/implications

Due to the nature of meta-analyses, this study is based on existing (i.e. available secondary) data. Future research may collect novel, primary data to further test the conceptual model and respective relationships developed therein.

Practical implications

This study sheds light onto the culture-based performance determinants of acquisitions and the effects of methodological and contextual moderator variables. Given the significant importance of acquisitions across organizational and national cultures, the findings may inform business practitioners when developing sustainable strategies to successfully integrate organizations that are culturally different and/or are located in culturally diverse environments.

Social implications

A better understanding about the culture-based performance determinants of acquisitions may inform public policy makers about how to regulate and set incentives for acquisitions, which constitute a main vehicle through which firms undertake foreign direct investment, and which can be considered a global sustainable growth strategy for multinational corporations and entire economies.

Originality/value

This paper is original in that it provides a large-scale and in-depth quantitative integration and synthesis of the empirical literature on culture and acquisition performance based on a meta-analytical approach and so has important theoretical value and empirical implications for future emerging market research.

Details

International Journal of Emerging Markets, vol. 12 no. 1
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 19 June 2019

Zhipeng Cui, Junying Liu, Bo Xia and Yaxiao Cheng

International construction joint ventures (ICJVs) have been widely used as a temporary arrangement in many projects all over the world, especially in megaprojects. Within…

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Abstract

Purpose

International construction joint ventures (ICJVs) have been widely used as a temporary arrangement in many projects all over the world, especially in megaprojects. Within ICJVs, the national culture difference between partners affects their cooperation significantly. However, prior research has provided contradictory empirical evidence regarding these impacts. To address this problem, the purpose of this paper is to introduce cultural intelligence that judges an individual’s capability to function and manage effectively in culturally diverse settings as a moderating variable.

Design/methodology/approach

Multiple regression analysis and moderated multiple regression were undertaken to test proposed hypotheses. A questionnaire survey was conducted with international construction practitioners who had experiences of managing or participating in ICJVs.

Findings

The result of multiple regression analysis revealed that difference in national culture has significant negative effects on information exchange, shared problem solving and flexibility when asking for changes, thus effecting cooperation within ICJVs. Meanwhile, cultural intelligence of members can weaken these negative influences.

Practical implications

First, given that national culture difference affects negatively on the cooperation within ICJVs, it needs to be regarded as one of vital resources of risk which should be prevented and managed when attending ICJVs; Second, managers should build a series of mutually agreeable regulations and rules to lessen the negative effect of national culture difference; Third, it is recommended that ICJV management teams contain as many work-experienced members as possible and members within ICJVs, especially new staff, receive cross-cultural training termly to facilitate the cooperation between partners.

Originality/value

This research reveals the moderating effects of cultural intelligence on the relationship between national culture difference and cooperation in ICJVs as well as provides practical implications for ICJV managers to deal with national culture difference and reduce its negative impact on cooperation within ICJVs.

Details

Engineering, Construction and Architectural Management, vol. 26 no. 7
Type: Research Article
ISSN: 0969-9988

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Article
Publication date: 16 August 2022

Michael Minkov and Anneli Kaasa

It is often believed that the type of religion that a group of people follow (Protestant, Catholic, Orthodox, Muslim, Jewish, Hindu, Buddhist, etc.) can account for…

Abstract

Purpose

It is often believed that the type of religion that a group of people follow (Protestant, Catholic, Orthodox, Muslim, Jewish, Hindu, Buddhist, etc.) can account for significant and important cultural differences, with implications for business ethics, corporate and social responsibility, and other business-related variables. The alternative view is that the cultural differences between religions are either trivial or are actually misinterpreted ethnic or national differences. The purpose of this paper is to compare and evaluate these two views.

Design/methodology/approach

The authors focus on Africa, the most religious region of the world, whose cultures should therefore be especially susceptible to the effect of religion. We used latest data from 100 religious groups, following 19 religions, and living in 27 countries, from the nationally representative Afrobarometer. The items in the authors’ analysis reveal cultural ideologies concerning key cultural domains, such as inclusive–exclusive society (gender equality, homophobia and xenophobia), the role of government and the role of religion in politics. These domains are related to cultural conservatism versus modernization and have clear implications for management. The authors compare the group-level effect of belonging to a certain nation to the effect of belonging to a certain religion.

Findings

A hierarchical cluster analysis produced crystal-clear national clusters, with only one of the 100 religious groups systematically clustering outside its respective national cluster. The authors did not obtain a single cross-national cluster of coreligionists. Variation between nations was far greater than between religious groups and the latter was most often statistically insignificant. A comparison of Muslims with other religions revealed that Muslims are not generally more conservative, although they do have a marginally greater tendency to be less gender egalitarian. The authors conclude that the African national environments have a much stronger impact on cultural differences than do religions. The effect of the latter, compared to the former, is negligibly small and often insignificant. Thus, they find no evidence that religions can produce a powerful discriminant effect on some of the most important elements of culture.

Research limitations/implications

Non-Abrahamic religions are poorly represented in Africa. Therefore, we could not assess their effect on culture. Nevertheless, it seems that attempts to explain cultural differences in values and ideologies in terms of religious differences are misguided, even in a cultural environment where religion is very strong.

Practical implications

The findings could help improve executive training in cross-cultural awareness, purging it from erroneous views on the origins of cultural differences. Managers should avoid simplistic explanations of the values and ideologies of their employees in terms of their religious affiliation.

Social implications

Simplistic (yet very popular) explanations of culture as a function of type of religion should be avoided in society at large, too. The idea that different religions generate different cultures is not only dubious from a scientific perspective but also socially dangerous as it may lead to religious intolerance.

Originality/value

This is only the second study in the history of the whole cross-cultural field that provides a multinational and multidenominational comparison of the effect of nations versus religious denominations on culture.

Highlights:

  1. Religions are often portrayed as sources of important cultural differences.

  2. We compared differences in cultural modernization between religions and between nations in Africa.

  3. Variation between 27 African countries dwarfed that between 100 religious groups.

  4. Practically all religious groups yielded perfectly homogeneous national clusters.

  5. We did not observe a single cluster of coreligionists from different countries.

  6. We conclude that nations have a strong effect on cultural differences whereas religions have a minimal effect at best.

Religions are often portrayed as sources of important cultural differences.

We compared differences in cultural modernization between religions and between nations in Africa.

Variation between 27 African countries dwarfed that between 100 religious groups.

Practically all religious groups yielded perfectly homogeneous national clusters.

We did not observe a single cluster of coreligionists from different countries.

We conclude that nations have a strong effect on cultural differences whereas religions have a minimal effect at best.

Details

Cross Cultural & Strategic Management, vol. 29 no. 4
Type: Research Article
ISSN: 2059-5794

Keywords

Book part
Publication date: 2 December 2019

Frank Fitzpatrick

Abstract

Details

Understanding Intercultural Interaction: An Analysis of Key Concepts
Type: Book
ISBN: 978-1-83867-397-0

Article
Publication date: 17 November 2014

Haithem Zourrig, Kamel Hedhli and Jean Charles Chebat

– This paper aims to investigate the cultural variability in assessing the severity of a service failure.

Abstract

Purpose

This paper aims to investigate the cultural variability in assessing the severity of a service failure.

Design/methodology/approach

Two separate studies were conducted. The first investigates differences in the perception of service failures across two cultural pools of subjects (allocentrics versus idiocentrics) and within a same country. The second contrasts two levels of comparisons: a cross-cultural values’ level and a cross-country level, to assess differences in the perception service failures’ severity.

Findings

Results showed that cultural values differences, when investigated at the individual level (i.e. idiocentrism versus allocentrism) are more significant to understand the influence of culture on the perception of severity, that is, allocentrics perceive more severity in the service failure than idiocentrics. However, a cross-country comparison (i.e. USA versus Puerto Rico) does not show significant differences.

Research limitations/implications

Customers may assess, with different sensitivities, the severity of a service failure. These differences are mainly explained by differences in cultural values’ orientations but not differences across countries. Even originating from a same country, customers could perceive with different degrees the seriousness of a same service failure as they may cling to different cultural values. Hence, it is increasingly important to examine the cultural differences at the individual-level rather than a country level.

Practical implications

Firms serving international markets as well as multiethnic ones would have advantage to understand cultural differences in the perception of the severity at the individual level rather than at the societal or country level. This is more helpful to direct appropriate service recovery strategies to customers who may have higher sensitivity to the service failure.

Originality/value

Little is known about the effect of culture on the severity evaluation, although investigating cross-cultural differences in the assessment of severity is relevant to understand whether offenses are perceived more seriously in one culture than another and then if these offenses will potentially arise confrontational behaviors or not.

Details

International Journal of Quality and Service Sciences, vol. 6 no. 4
Type: Research Article
ISSN: 1756-669X

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Article
Publication date: 29 January 2020

Chensheng Xu, Feng Yao, Fan Zhang and Yonghong Wang

This study aims to investigate the influence of the Confucius Institute (CI) on outward foreign direct investment (OFDI) by China and its potential interaction with…

Abstract

Purpose

This study aims to investigate the influence of the Confucius Institute (CI) on outward foreign direct investment (OFDI) by China and its potential interaction with cultural difference and institutional quality in host countries.

Design/methodology/approach

In the empirical study, the gravity model is adopted as the benchmark to investigate the effects of CI on China's OFDI using the ordinary least squares or Poisson Pseudo Maximum Likelihood estimators. Panel data on China's OFDI from 2004 to 2015 are used. Cultural difference and institutional quality are included explicitly as control variables to examine the effects of CI on China's OFDI.

Findings

CI has a significant positive effect on China’s OFDI, and this effect depends on the cultural difference and institutional quality of the host country. The impact of CI on China’s OFDI is more prominent in host countries with a smaller cultural difference or lower institutional quality.

Originality/value

CI is a comprehensive platform for foreign cultural exchange and signifies the rebirth of Confucianism in China. The present study shows that CI can stimulate the growth of China’s OFDI, with implications for other Asian countries influenced by Confucianism. Based on the results of the study, strategies for “Going Global” and encouraging economic growth based on cultural exchange and the recognition of host country heterogeneities are proposed.

Article
Publication date: 1 July 2006

Mark Neal

The purpose of this paper is to demonstrate paradoxes in the development of organizational cultural problems – paradoxes that go undetected by people involved in them. The…

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Abstract

Purpose

The purpose of this paper is to demonstrate paradoxes in the development of organizational cultural problems – paradoxes that go undetected by people involved in them. The paper explains why these paradoxes remain undetected, and shows how their “invisibility” is a foundation for the development of “cultural problems”.

Design/methodology/approach

The approach is phenomenological, in that it explores how actors in cross‐cultural settings understand “difference” and thereby socially construct “cultural problems”.

Findings

Three interrelated paradoxes are uncovered: In dyads, actors perceive two‐way “cultural difference” as being one‐way. “Difference” thus becomes embodied in the “other” – “the other” alone is “different” and “difficult”. In bi‐cultural organizations, perceptions of “the other” as “different” and “difficult” encourage the formation of in‐groups and out‐groups that lead to “cultural problems”. “Difference” becomes embodied in “the others” while “cultural problems” that are the results of their own actions are also embedded in “the others”. In multicultural organizations these understandings break down. “Difference” becomes disembodied, and “cultural problems” become embodied in “difference”. More cultural differences thus engender fewer “cultural problems”.

Research limitations/implications

The novel theoretical part of the study is so far untested. The paper thus calls for studies that apply the developed theoretical approach. The ethnographic observations that support the existence of the multicultural paradox are preliminary and ongoing.

Practical implications

The novel theoretical approach can immediately be applied to other organizational issues.

Originality/value

This paper introduces, for the first time, the Buddhist concept of anatta in the analysis of organizations. The theoretical approach is new, and can be applied to further studies of organizational problems.

Details

Journal of Organizational Change Management, vol. 19 no. 4
Type: Research Article
ISSN: 0953-4814

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Article
Publication date: 8 May 2017

Kan Shi, Xiaoqian Liu, Chengjun Yang, Ziping Yao and Dong Liu

Drawing upon the theory of organizational commitment and relative standing, this study aimed to develop an integrative model to examine how organizational cultural

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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.

Details

Journal of Chinese Human Resource Management, vol. 8 no. 1
Type: Research Article
ISSN: 2040-8005

Keywords

1 – 10 of over 100000