A3 Refereed book chapter or chapter in a compilation book
Structure First! Temporal Dynamics of Structural and Cultural Integration in Cross-Border Acquisitions
Authors: Satu Teerikangas, Tomi Laamanen
Editors: Sydney Finkelstein and Cary Cooper
Publishing place: Bingley
Publication year: 2014
Book title : Advances in Mergers and Acquisitions
Series title: Advances in Mergers and Acquisitions
Volume: 13
First page : 109
Last page: 152
Number of pages: 44
ISBN: 978-1-78350-970-6
eISBN: 978-1-78350-992-8
ISSN: 1479-361X
DOI: https://doi.org/10.1108/S1479-361X20140000013005
Web address : http://www.emeraldinsight.com/doi/full/10.1108/S1479-361X20140000013005
While there is an increasing understanding of the
challenges that can emerge in integration processes of cross-border
mergers and acquisitions, there is a scarcity of research on how the
different integrative activities should be temporally sequenced. Based
on an in-depth analysis of three acquisitions, we find that structural
and cultural integration are intertwined. We find that cultural
integration will begin only once structural integration is in progress.
Cultural differences can, however, impede structural integration if
structural integration is done in conflict with the existing culture of
the acquired company. Thus, structural integration should come first,
but it should be done in appreciation with the acquired company’s
existing culture. Cultural change is then facilitated in an iterative
manner over time by the new structure. Our chapter contributes to an
improved understanding of the temporal dynamics of integration by
demonstrating the mutually reinforcing effects of structural and
cultural integration in cross-border acquisitions.