National Culture- The Antagonist in Post- Merger-Integration? The Influence of National Culture in the Post-Merger Integration Process in Cross-Border Mergers and Acquisitions

Bedrana Ayar

Student thesis: Master thesis

Abstract

Gert Hofstede was one of the first researchers who tried to incorporate culture as validand measurable variable in organizational theory. In his book – Culture’sConsequences – International Differences in Work Related Values – (1980), hedescribed different cultural dimensions, such as Power Distance, Masculinity andUncertainty Avoidance. Even though these classifications were -and still are- verycritically discussed, they give a useful framing of the formerly vague concept ofculture. With Hofstede’s research culture became a more tangible variable incorporate considerations.”Culture is more often a source of conflict than of synergy. Cultural differences are anuisance at best and often a disaster.”1 this quotation gives a good insight into theunderstanding of culture by Hofstede. Since the 1980’s culture started to becomemore and more a strategic resource for corporations. The following research aims atidentifying obstacles that companies operating on a global scale will encounter intheir quest for globalization and market leadership. What adaptations will they have tomake when merging with companies in distant countries and cultures, and how doesthis affect the understanding of the company and its employees in their nationalcontexts?The research is threefold and touches upon mergers and acquisitions, the post-mergerintegration and national and organizational culture concepts. In the course of theresearch, the foundation of merger and acquisition knowledge, such as motives formergers and forms of acquisitions, were found to be of major importance tounderstand the dynamics. The research of cultural concepts showed that non -with astrict focus on national culture- was found to be applicable in the organizationalcontext. Therefore, this thesis suggests combining the Acculturation Theory and theSocial Identity Theory with certain influencing factors. The comparative studysuggests that the findings can be applied to national culture phenomena.Nevertheless, further research has to be undertaken to test and validate the proposedframework and its implications. A longitudinal case-based approached is suggested.

EducationsMSc in Business, Language and Culture, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2013
Number of pages83
SupervisorsAnnette Risberg