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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.

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.

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”.

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.

This paper offers an approach to deal with the value destruction caused when culturally incompatible organizations merge.

A field-tested Cultural Comparison and Integration Model is demonstrated. 10;

The model illustrates how managers can compare and integrate cultures of combining firms using “cultural levers”.

A case example of the model in practice is included.

The model has been tested in a large and medium size organizations in a variety of industries and nationalities.

Achieving a highly satisfied and committed workforce, during post-merger integration (PMI), has made employees’ perceived organizational justice a vital construct in the mergers and acquisitions (M&A) research. For example, employee attitudes like satisfaction and commitment influence overall M&A outcomes, but employee responses primarily depend on their perceptions of justice for the merged organization. Hence, the purpose of this paper is to investigate the cause and effect of employees’ perceptions of justice during M&A.

This research used a mixed-methods research design (qual and quan). The quantitative investigation of 207 M&A survivors from 3 M&A deals examined the relationship between perceived organizational justice (three dimensions) with employees’ level of affective commitment and satisfaction during PMI. The multivariate analysis was performed to analyze this data. A thorough thematic content analysis of the in-depth interviews of ten M&A experts and strategists helped to develop a detailed theoretical model of justice during M&A.

The resultant model highlighted the three antecedents of perceptions of justice, i.e. human integration, cultural integration and task integration, which together explained the employees’ perception of justice during M&A. Perception of justice was further found to influence employees’ psychological outcomes and overall synergy realization.

The current study adds to the literature by providing a holistic understanding of the justice phenomenon during M&A by focusing on its antecedents and outcomes, and thus, proposes a detailed framework. The current study also emphasizes on the relative importance of procedural and interactional justice over distributive justice in determining employee attitudes toward change.

The aim of this paper is to explore the various practices in achieving successful cultural integration in the merger and acquisition (M&A) activity of global organizations, with a focus on factors enhancing employee engagement, viewed as a fundamental aspect of deal value and long‐term business results.

The paper is based on interviews with human resource (HR) leadership, isolating best practices consistent with successful integration within the organizations.

The interviews and Mercer research helped to codify four core elements of an approach to M&A cultural integration, including employee engagement factors that were highly consistent and reinforced in the various examples.

Organizations that embrace this consistent approach – or variations thereof – to cultural integration in their M&A activity will improve the probability for success in creating sustainable value in the merged organizations.

The paper provides useful information on how to achieve cultural integration in M&A activity with sustainable value in the merged organizations.

The multipolar configuration of the current economic context has led management scholars to reconsider the existing theoretical perspectives that explain drivers and effects of mergers and acquisitions (M&As).

The combination of structures, systems, processes and people imposed by M&A is a complex process that needs to be properly managed. This process can be divided into three phases of pre-combination, combination and post-combination. It evidences the dilemma of integrating two distinct firms and preserving their specific identities. In cross-border M&A, differences in organizational cultures increase the complexity of the integrative process and make it difficult for the companies that proceed to the merger to reach the preordained synergies, where the problem linked to the diversity of the national culture is added. A successful integration process allows to treat the elements of diversity as opportunities and not as obstacles.

This paper provides a review of theoretical perspectives and empirical research on the role of culture in mergers and acquisitions [M&A], with a particular focus on the performance implications of cultural differences in M&A. Despite theoretical and anecdotal evidence that cultural differences can create major obstacles to achieving integration benefits, empirical research on the performance impact of cultural differences in M&A yielded mixed results: while some studies found national or organizational cultural differences to be negatively related to measures of M&A performance, others observed a positive relationship or found cultural differences to be unrelated to M&A performance. We offer several explanations for the inconsistent findings of previous research on the performance impact of cultural differences in M&A and develop a model that synthesizes our current understanding of the role of culture in M&A. We conclude that the relationship between cultural differences and M&A performance is more complex than previously thought and propose that, rather than asking if cultural differences have a performance impact, future research endeavors should focus on how cultural differences affect M&A performance.

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?

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.

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.

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.

In the process of cross-border mergers and acquisitions (M&A), the social capital of enterprises is dynamic. In this context, cross-cultural competence plays an important role and can affect the transformation process of social capital and further influence the realisation of M&A performance. However, there is still not enough research on the process of social capital transformation and corporate cross-cultural competence. This study aims to explore the influence mechanism of social capital and the cross-cultural competence of enterprises.

In this paper, four typical manufacturing M&A case studies were analysed and a grounded theoretical analysis process was used to explore the structure of cross-cultural competence and its impact on the dynamic process of social capital.

The results of this study imply that social capital experiences three stages of transformation in the process of M&A. There are also four dimensions of corporate cross-cultural competence, which are composed of various factors. These all affect the dynamic process of social capital through different influence mechanisms.

According to the results, a mechanism model was composed to determine how corporate cross-cultural ability affects the social capital process. This is of practical significance as it can enhance the performance of M&A integration in a cross-cultural context.

Empirical findings from the past 15 years suggest that the influence of culture on the integration process is critical. However, the interrelationships between corporate and national cultures and their influence on merger success are not clear, and the results of empirical studies are contradictory. The major objective of this chapter is to provide a framework that addresses the effects of cultural distance on various integration approaches, and thereby explain international merger and acquisition performance. The framework can assist managers of international mergers in analyzing, evaluating, and planning before the merger and in implementing the chosen integration approach after the merger.

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.