A3 Refereed book chapter or chapter in a compilation book

Structure First! Temporal Dynamics of Structural and Cultural Integration in Cross-Border Acquisitions




AuthorsSatu Teerikangas, Tomi Laamanen

EditorsSydney Finkelstein and Cary Cooper

Publishing placeBingley

Publication year2014

Book title Advances in Mergers and Acquisitions

Series titleAdvances in Mergers and Acquisitions

Volume13

First page 109

Last page152

Number of pages44

ISBN978-1-78350-970-6

eISBN978-1-78350-992-8

ISSN1479-361X

DOIhttps://doi.org/10.1108/S1479-361X20140000013005

Web address http://www.emeraldinsight.com/doi/full/10.1108/S1479-361X20140000013005


Abstract

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.



Last updated on 2024-26-11 at 10:42