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Article
Publication date: 1 August 2016

Miao Cui, Crystal Dong, Yuekun Liu and Shujuan Wang

An increasing number of Chinese enterprises are involved in cross-border mergers and acquisitions (M&As). However, few Chinese enterprises have achieved successful integration…

1771

Abstract

Purpose

An increasing number of Chinese enterprises are involved in cross-border mergers and acquisitions (M&As). However, few Chinese enterprises have achieved successful integration, which plays a critical role in enhancing performance. The important field of cultural integration is currently facing major challenges. To identify the reasons for these challenges, studies have analyzed why cultural integration succeeds or fails and have suggested that cultural differences between acquiring and acquired enterprises are the primary obstacles to cultural integration. However, it is unclear how success can be achieved. The paper aims to focus on cultural integration from the perspective of acculturation to describe the penetration of cultural elements in M&As.

Design/methodology/approach

In adopting acculturation as our theoretical lens, the authors use the case study method to answer the following research question: “how can the cultural integration of Chinese enterprises be successfully achieved?” Two typical cases are examined: Lenovo’s cultural integration with IBM’s personal computer (PC) division and Haier’s cultural integration with Sanyo home appliance. First, using the exploratory case study method, the Lenovo–IBM PC division case is analyzed. The characteristics and relationships between cultural environments, employee adoption methods and acculturation patterns are summarized to reveal a cultural integration path. Second, the Haier–Sanyo home appliance case is analyzed using the confirmative case study method to test the findings of the Lenovo–IBM PC division case.

Findings

The results indicate that it is critical to achieve a dynamic fit between cultural environments, employee adoption methods and acculturation patterns during each stage of cultural integration (exploration, experimentation, reinforcement and fixing). The three constructs of these stages reflect the following evolutionary paths: “isolate-introduce-learning-chance taking”, “detecting-icebreaking-interacting-remodeling” and “specialized sections-senior managers-managers-employees”.

Originality/value

These findings contribute to the development of cultural integration and acculturation theories and serve as a reference for Chinese enterprises wishing to implement cultural integration strategies.

Details

Nankai Business Review International, vol. 7 no. 3
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 21 December 2017

Riikka Harikkala-Laihinen, Mélanie Hassett, Johanna Raitis and Niina Nummela

The purpose of this paper is to analyse how dialogue can be used to promote post-acquisition socio-cultural integration. Specifically, it addresses questions regarding when and…

Abstract

Purpose

The purpose of this paper is to analyse how dialogue can be used to promote post-acquisition socio-cultural integration. Specifically, it addresses questions regarding when and how companies can utilise dialogue to generate positivity regarding socio-cultural integration.

Design/methodology/approach

A single case study approach was adopted owing to its suitability for creating in-depth understanding in the context of socio-cultural integration. Primary data were collected via interviews, an employee satisfaction survey, and participant observation. Secondary data were obtained from the case company’s internal materials, such as strategies, integration workflows, and employee magazines. Analysis methods included descriptive statistics and thematic qualitative analysis.

Findings

The findings suggest that dialogue can be used to create positivity regarding socio-cultural integration throughout the stages of unfreezing, moving, and refreezing by actively engaging employees in voicing, listening, respecting, and suspending. It is proposed that cultural conflict during post-acquisition socio-cultural integration can be overcome through the generation of positivity; dialogue enables the collective management of emotions during post-acquisition integration by offering a platform for creating positivity and social cohesion; and due to its collaborative and engaging nature, dialogue provides an especially effective means of communication for overcoming cross-cultural conflict.

Originality/value

To the authors’ knowledge, this is the first attempt to showcase dialogue as a specific means of communication for creating positivity during cross-border socio-cultural integration. This study reached beyond comparative cultural research to offer views on positivity, emotion during socio-cultural integration, and dialogue as means for overcoming cross-cultural conflict.

Details

Cross Cultural & Strategic Management, vol. 25 no. 1
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 13 November 2017

Andrei Panibratov

The purpose of this paper is to identify key factors that influence the integration process in cross-border mergers and acquisitions (M&A) deals of emerging multinational…

3898

Abstract

Purpose

The purpose of this paper is to identify key factors that influence the integration process in cross-border mergers and acquisitions (M&A) deals of emerging multinational enterprises (EMNEs). The research questions are: how national and organizational culture coupled with other organizational characteristics influence M&A deals of EMNEs? Which factors influence the process of cultural and organizational integration in cross-border M&A deals, initiated by EMNEs? What is the effect and consequences that different integration factors have on cross-border M&A deals by EMNEs?

Design/methodology/approach

The paper is based on a multiple case study research, considering cross-border deals of Chinese and Russian firms separately. Each block consists of two cases, describing M&A integration of companies operating in two sectors: high technology and finance. The authors obtained the data for case studies from companies’ official websites, annual reports, press releases, other official documents where companies were mentioned, business-media sources (newspapers and magazines), published interviews, documented speeches, letters, laws, as well as through blogs and social networks. The authors have also used the published information from articles, books, databases, and previously conducted case studies.

Findings

The authors have identified the factors influencing deals’ results of Chinese and Russian MNEs, with explanation based on case studies’ analysis. The full list of factors is presented in Table IV in the manuscript. The authors have also identified the set of elements that were derived from the case studies’ analysis only, without having any strong support in the literature, such as changes at a senior management level, educational and business exchanges, CSR policy, and the government involvement.

Originality/value

The authors have identified the key factors that influence integration of emerging market firms in cross-border M&A deal. The list of factors was adjusted and actualized in accordance with the results of four cases of cross-border M&A deals of Chinese or Russian companies. As a result, the authors founded the combination of characteristics of cultural and organizational integration process of firms from China and Russia.

Details

Journal of Organizational Change Management, vol. 30 no. 7
Type: Research Article
ISSN: 0953-4814

Keywords

Article
Publication date: 29 October 2020

Secil E. Ertorer, Jennifer Long, Melissa Fellin and Victoria M. Esses

This paper explores integration experiences of immigrants in the Canadian workplace from the perspective of immigrants themselves, focusing on cultural capital and cultural…

1864

Abstract

Purpose

This paper explores integration experiences of immigrants in the Canadian workplace from the perspective of immigrants themselves, focusing on cultural capital and cultural judgments as factors influencing workplace entry, advancement and social integration in an increasingly diverse work environment.

Design/methodology/approach

An interpretive approach that involved thematic analysis of in-depth interview data was employed.

Findings

The findings reveal that the official two-way multiculturalism policy of Canada is not reflected in the Canadian workplace and that structural forces of assimilation are evident. Cultural judgments and immigrants' cultural capital create barriers for integration.

Research limitations/implications

While highlighting important aspects of immigrant experiences within the Canadian workplace, the study findings cannot generate a fully representative theorization of immigrant employment experiences in Canada. Further studies with diverse migrant groups in different parts of the country would shed more light on the issues faced by immigrants.

Practical implications

The barriers to social integration identified by this study can be largely overcome by improving intercultural skills and cultural intelligence of employers and employees through training and incorporating values of diversity and inclusion into the corporate culture.

Social implications

The factors that foster and hinder workplace integration identified by this study can inform workplace integration strategies and related policies.

Originality/value

Much of the literature concerning immigrants' position in Canada address the economic integration and economic well-being of immigrants, focusing on quantitative, macro level analyses of earnings disparity and labor market segmentation. There is a lack of qualitative research that explores the integration process through the lens of immigrants. Informed by the theories of cultural capital, cultural judgment and integration, the study sheds light on the everyday workplace experiences of skilled migrants and perceived barriers to workplace entry, advancement and social integration.

Details

Equality, Diversity and Inclusion: An International Journal, vol. 41 no. 7
Type: Research Article
ISSN: 2040-7149

Keywords

Article
Publication date: 14 December 2022

Eleftherios Giovanis and Sacit Hadi Akdede

Previous studies have used language proficiency, citizenship, labour indicators, educational outcomes and political rights as measures of migrants’ socio-cultural integration…

Abstract

Purpose

Previous studies have used language proficiency, citizenship, labour indicators, educational outcomes and political rights as measures of migrants’ socio-cultural integration. However, little is known about the migrants’ participation in volunteering activities, music concerts, theatrical plays and artistic activities, among others, and how this is compared to the participation of natives, defined as people of German descent and born in Germany. The study aims to investigate and compare the cultural and social involvement between migrants and natives.

Design/methodology/approach

The analysis relies on information from the German Socio-Economic Panel Survey (GSOEP). Panel data models, in particular, the random-effects ordered Logit model, are utilised because the investigated outcomes are recorded in frequency and are ordered variables. The authors compare the participation in socio-cultural activities among immigrants of the first, second and 2.5 generations.

Findings

The findings indicate that first-generation immigrants are less likely to engage in various socio-cultural activities. However, the 2.5 generation immigrants are more active than the native population, as this generation of immigrants participates more frequently.

Social implications

The findings highlight the importance of fostering interaction between natives and immigrants in the workplace and the social and cultural realms. Participation in social and cultural activities may increase intercultural awareness and contribute to the eradication of bias and prejudice.

Originality/value

To the best of the authors’ knowledge, this is the first study to use a large panel dataset to compare the participation of natives and migrants in various social and cultural activities. In addition, this is the first study to analyse second and 2.5-generation immigrants.

Details

Equality, Diversity and Inclusion: An International Journal, vol. 42 no. 3
Type: Research Article
ISSN: 2040-7149

Keywords

Article
Publication date: 5 June 2019

Yanan Yang, Christoph Lütge and Hongwei Yang

The purpose of this paper is to determine the principal organisational cultural dimensions that affect levels of post-merger integration (PMI) in Chinese acquisitions in Germany…

1390

Abstract

Purpose

The purpose of this paper is to determine the principal organisational cultural dimensions that affect levels of post-merger integration (PMI) in Chinese acquisitions in Germany and to explore the relationship of these specific organisational cultural dimensions and levels of integration.

Design/methodology/approach

Data set were collected using a structured questionnaire given to Chinese and German managers and employees, who implemented/were responsible for the PMI in 12 Chinese acquisitions in Germany. A total of 120 questionnaires were distributed and there were 67 respondents, corresponding to a response rate of about 56 per cent. Principal components analysis, one-way ANOVA and bi-variate Spearman’s correlation were applied to analyse the data.

Findings

Findings revealed that five organisational cultural dimensions (i.e. adaptability, consistency, involvement, balance and flexibility) were extracted to be the primary indicators affecting levels of integration in Chinese reverse mergers and acquisitions (M&As) in the German market. Further, adaptability emerged as the only predictor with a significant negative implication on predicting the degree of PMI that Chinese investors would initiate to integrate their acquired German subsidiaries.

Originality/value

This study is one of the few studies to consider the specific organisational cultural dimensions affecting the integration levels of reverse M&As and is the first study, to the best of our knowledge, to explore the correlations of specific corporate cultural dimensions and integration levels in emerging multinational enterprises’ reverse M&As through quantitative research.

Details

Review of International Business and Strategy, vol. 29 no. 2
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 1 February 2022

Zhe Sun, Liang Zhao, Hongji Wei, Xiaoming Wang and Rosanne Rosalie Riemersma

The study aims to examine the effects of guanxi and harmonious leadership on acquisition performance and the role of sociocultural integration as a mediating mechanism impacting…

Abstract

Purpose

The study aims to examine the effects of guanxi and harmonious leadership on acquisition performance and the role of sociocultural integration as a mediating mechanism impacting the above links, with a focus on Chinese cross-border acquisitions in The Netherlands.

Design/methodology/approach

Data were collected through survey questionnaire with 91 respondents who work in Dutch-acquired companies. Regression analysis was used for exploring the relationship.

Findings

The study finds that both guanxi and harmonious leadership are positive to acquisition performance, and sociocultural integration represents a significant mediating mechanism by which guanxi and harmonious leadership can result in improved acquisition performance.

Originality/value

This study contributes to culture research by emphasizing the clarification of specific Chinese cultural values and cultural practices in cross-border acquisitions and examining the role of guanxi and harmonious leadership in acquisition performance. Meanwhile, this study helps to unveil Chinese cross-border acquisitions in The Netherlands by examining the mediating force – sociocultural integration.

Details

International Journal of Emerging Markets, vol. 18 no. 10
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 13 November 2007

Thayaparan Gajendran and Graham Brewer

Although the deployment of information and communication technology (ICT) in the construction industry is widespread recent research indicates that the surrounding contextual…

2693

Abstract

Purpose

Although the deployment of information and communication technology (ICT) in the construction industry is widespread recent research indicates that the surrounding contextual issues hinder its successful application in many project settings. This paper aims to develop a framework for the analysis of organisational culture in respect of ICT implementation across an organisation in the construction industry.

Design/methodology/approach

An re‐analysis of critical success factors (CSF) for ICT integration, identified through data from a Delphi study of industry experts and a questionnaire survey of ICT users, using Martin's three‐perspective framework applying both the functional and non‐functional approaches to cultural analysis was conducted.

Findings

The research revealed the theoretical dimensions and properties of organisational culture that influence CSFs for ICT integration in construction projects teams. This paper concludes by highlighting the influence of the organisation's culture, manifested though the nature and extent of shared understanding, on the likely success of ICT implementation.

Originality/value

The deployment of ICT without appropriate consideration of contextual issues, in particular, organisational culture, will be likely to generate disappointing results. The framework presented in this paper provides a rigorous foundation for consideration of such issues.

Details

Engineering, Construction and Architectural Management, vol. 14 no. 6
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 1 December 2006

George Lodorfos and Agyenim Boateng

The cultural element in M&As' integration process has been identified as one of the key issues that may help explain the failure of many mergers and acquisitions. Yet what needs…

24387

Abstract

Purpose

The cultural element in M&As' integration process has been identified as one of the key issues that may help explain the failure of many mergers and acquisitions. Yet what needs to be done to improve cultural integration in order to enhance M&As' success has received relatively little attention. This study attempts to examine the role played by culture and provide a framework for enhancing the success of mergers and acquisitions.

Design/methodology/approach

This study is based on 32 interviews with senior managers of 16 merger and acquisition deals in the chemical industry.

Findings

The study finds that culture differences between the merging firms are a key element affecting effectiveness of the integration process and consequently the success of M&As. Furthermore, the study finds that, although managers agree that cultural differences create organisational challenges, yet the attention given to cultural integration issues during M&As are at best tenuous and in some cases reactive. This study, therefore, suggest a four staged approach in dealing with cultural differences.

Practical implications

The managerial implication of this finding is that cultural fit constitutes a key factor in M&As' success and should be given the necessary attention at all stages of M&As. The tentative conclusion to be drawn here is that good pre‐merger planning with culture placed at the heart of integration strategies and implementation and the creation of a positive atmosphere for the change – before initiating any actual consolidation of human and physical assets – are likely to contribute to acquisition success and value creation.

Originality/value

This article provides a framework for managing culture in mergers and acquisitions.

Details

Management Decision, vol. 44 no. 10
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 1 March 2001

Katinka Bijlsma‐Frankema

This article discusses success factors of cultural integration and cultural change processes in mergers and acquisitions. The focus of the project is on the effects of frictions…

17817

Abstract

This article discusses success factors of cultural integration and cultural change processes in mergers and acquisitions. The focus of the project is on the effects of frictions between structure and cultures, and frictions between different cultures, on the functioning of the organisation. The factors discussed are based on empirical findings, and on literature that, in the analysis, proved to corroborate these findings, or insights based on these findings. It is argued that cultural integration is furthered by mutual trust. Trust can be built by shared goals, by dialogue, by looking for shared norms, monitoring and handling deviance. Cultural change processes were found to be dependent on legitimisation of the changes, clarification of goals and changes in what is expected of organisational members, monitoring and guidance, conditions of psychological safety, and feedback on success and failure outcomes that is worked upon in a learning mode.

Details

Journal of European Industrial Training, vol. 25 no. 2/3/4
Type: Research Article
ISSN: 0309-0590

Keywords

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