Skip to main content
SpringerLink
Log in

Contrasting Germany and China: What Is the Influence of Culture and Learning on the PMI-Process?

  • Chapter
  • First Online:
Chinese Acquisitions in Developed Countries

Part of the book series: Measuring Operations Performance ((MEOP))

  • 762 Accesses

Abstract

This paper aims to shed light on the intricate post-merger integration process between German and Chinese firms. The findings of this paper suggest that, while Chinese companies try to use more sensitive and cultural aligned methods for in their integration phase, German firms make use of faster and more aggressive modes. The reasons for this can be derived from cultural and knowledge influence, which affect integration mode decisions on various levels. In line with well-known theoretical models two in-depth cases studies are performed to compare Chinese with German integration peculiarities. This paper underlines the importance of careful integration efforts in cultural different and complicated merger situations to prevent problems and at the same time stresses the collaboration, communication as well as trust as main success factors for the integration phase.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Ahammad MF, Tarba SY, Liu Y, Glaister KW (2016) Knowledge transfer and cross-border acquisition performance: the impact of cultural distance and employee retention. Int Bus Rev 25(1):66–75

    Article  Google Scholar 

  • Ahuja G, Katila R (2001) Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study. Strateg Manag J 22(3):197–220

    Article  Google Scholar 

  • Ammann M, Hoechle D, Schmid M (2012) Is there really no conglomerate discount? J Bus Fin Account 39(1–2):264–288

    Article  Google Scholar 

  • Angwin D (2004) Speed in M&A integration: the first 100 days. Eur Manag J 22(4):418–430

    Article  Google Scholar 

  • Baigorri M (2016 2015 was best-ever year for M&A; this year looks good too. Retrieved from http://www.bloomberg.com/news/articles/2016-01-05/2015-was-best-ever-year-for-m-a-this-year-looks-pretty-good-too

  • Barkema HG, Bell JHJ, Pennings JM (1996) Foreign entry, cultural barriers, and learning. Strateg Manag J 17(2):151–166

    Article  Google Scholar 

  • Beamish PW (1993) The characteristics of joint ventures in the People’s Republic of China. J Int Marketing 1(2):29–48

    Article  Google Scholar 

  • Birkinshaw J, Bresman H, Håkanson L (2000) Managing the post-acquisition integration process: How the human iintegration and task integration processes interact to foster value creation. J Manage Stud 37(3):395–425

    Article  Google Scholar 

  • Bower JL (2001) Not all M&As are alike—and that matters. Harvard Bus Rev 79(3):93–101

    Google Scholar 

  • Bower JL (2004) When we study M&A, what are we learning? In: Pablo AL, Javidan M (eds) Mergers and acquisitions: creating integrative knowledge. Blackwell, Oxford, pp 235–244

    Google Scholar 

  • Bresman H, Birkinshaw J, Nobel R (1999) Knowledge transfer in international acquisitions. J Int Bus Stud 439–462

    Article  Google Scholar 

  • Brouthers KD, Brouthers LE (2000) Research notes and communications: acquisition or greenfield start-up? Institutional, cultural and transaction cost influences. Strateg Manag J 21:89–97

    Article  Google Scholar 

  • Brown K (2008) The rise of the dragon: inward and outward investment in china in the reform period 1978–2007. Elsevier, Amsterdam

    Chapter  Google Scholar 

  • Bryman A (2008) Why do researchers integrate/combine/mesh/blend/mix/merge/fuse quantitative and qualitative research. Adv Mixed Methods Res 87–100

    Google Scholar 

  • Buckley PJ, Clegg LJ, Cross AR, Liu X, Voss H, Zheng P (2007) The determinants of Chinese outward foreign direct investment. J Int Bus Stud 38(4):499–518

    Article  Google Scholar 

  • Buono AF, Bowditch JL (1989) The human side of mergers and acquisitions. Managing collisions between people, cultures and organizations. Jossey-Bass, San Francisco

    Google Scholar 

  • Calori R, Lubatkin M, Very P (1994) Control mechanisms in cross-border acquisitions: an international comparison. Organ Stud 15(3):361–379

    Article  Google Scholar 

  • Cartwright S, Cooper CL (1993) The role of culture compatibility in successful organizational marriage. Acad Manag Exec 7(2):57–70

    Google Scholar 

  • Chatterjee S, Lubatkin MH, Schweiger DM, Weber Y (1992) Cultural differences and shareholder value in related mergers: linking equity and human capital. Strateg Manag J 13(5):319–334

    Article  Google Scholar 

  • Chen M (2011) The continual rise of China—opportunities and challenges: introducing the special issue. Thunderbird Int Bus Rev 53(4):419–422

    Article  Google Scholar 

  • Child J, McGrath RG (2001) Organizations unfettered: organizational form in an information-intensive economy. Acad Manag J 44(6):1135–1148

    Google Scholar 

  • Child J, Tse DK (2001) China’s transition and its implications for international business. J Int Bus Stud 32(1):5–21

    Article  Google Scholar 

  • Christensen CM, Alton R, Rising C, Waldeck A (2011) The big idea: the new M&A playbook. Harvard Bus Rev 89(3):48–57

    Google Scholar 

  • Cohen WM, Levinthal DA (1990 Absorptive capacity: a new perspective on learning and innovation. Adm Sci Q 128–152

    Article  Google Scholar 

  • Datta DK (1991) Organizational fit and acquisition performance: effects of post-acquisition integration. Strateg Manag J 12(4):281–297

    Article  Google Scholar 

  • Deng P (2009) Why do Chinese firms tend to acquire strategic assets in international expansion? J World Bus 44(1):74–84

    Article  Google Scholar 

  • Deng P (2010) What determines performance of cross-border M&As by Chinese companies? An absorptive capacity perspective. Thunderbird Int Bus Rev 52(6):509–524

    Article  Google Scholar 

  • Eccles RG, Wilson TC, Lanes KL (1999) Are you paying too much for that acquisition? Harvard Bus Rev 77(4):136–146

    Google Scholar 

  • Eisenhardt KM (1989) Building theories from case study research. Acad Manag Rev 14(4):532–550

    Article  Google Scholar 

  • Eisenhardt KM, Graebner ME (2007) Theory building from cases: opportunities and challenges. Acad Manag J 50(1):25

    Article  Google Scholar 

  • Epstein MJ (2004) The drivers of success in post-merger integration. Org Dyn 33(2):174–189

    Article  Google Scholar 

  • García-Castro R, Aguilera RV, Ariño MA (2013) Bundles of firm corporate governance practices: a fuzzy set analysis. Corp Gov Int Rev 21(4):390–407

    Article  Google Scholar 

  • Glaister AJ, Liu Y, Sahadev S, Gomes E (2014) Externalizing, internalizing and fostering commitment: the case of born-global firms in emerging economies. Manag Int Rev 54(4):473–496

    Article  Google Scholar 

  • Gomes E, Weber Y, Brown C, Tarba SY (2011) Mergers, acquisitions and strategic alliances: understanding the process. Palgrave Macmillan

    Google Scholar 

  • Gomes E, Angwin DN, Weber Y, Yedidia Tarba S (2013) Critical success factors through the mergers and acquisitions process: revealing pre-and post-M&A connections for improved performance. Thunderbird Int Bus Rev 55(1):13–35

    Article  Google Scholar 

  • Haleblian J, Devers CE, McNamara G, Carpenter MA, Davison RB (2009 Taking stock of what we know about mergers and acquisitions: a review and research agenda. J Manag

    Google Scholar 

  • Harrison JS, Hitt MA, Hoskisson RE, Ireland RD (1991) Synergies and post-acquisition performance: differences versus similarities in resource allocations. J Manag 17(1):173–190

    Google Scholar 

  • Haspeslagh PC, Jemison DB (1991) Managing acquisitions: creating value through corporate renewal. Free Press, New York

    Google Scholar 

  • Hitt MA, Dacin MT, Levitas E, Arregle J-L, Borza A (2000) Partner selection in emerging and developed market contexts: resource-based and organizational learning perspectives. Acad Manag J 43(3):449–467

    Google Scholar 

  • Hofstede G (1980) Motivation, leadership, and organization: do American theories apply abroad? Org Dyn 9(1):42–63

    Article  Google Scholar 

  • Hofstede G, Bond MH (1984) Hofstede’s culture dimensions an independent validation using rokeach’s value survey. J Cross Cult Psychol 15(4):417–433

    Article  Google Scholar 

  • Huber GP (1991) Organizational learning: the contributing processes and the literatures. Organ Sci 2(1):88–115

    Article  Google Scholar 

  • Javidan M, Pablo A, Singh H, Hitt M, Jemison D (2004) Where we’ve been and where we’re going. In: Pablo AL, Javidan M (eds) Mergers and acquisitions: creating integrative knowledge. Blackwell, Oxford, pp 245–261

    Google Scholar 

  • Jemison DB, Sitkin SB (1986) Corporate acquisitions: a process perspective. Acad Manag Rev 11(1):145–163

    Article  Google Scholar 

  • Junni P (2011) Knowledge transfer in acquisitions: fear of exploitation and contamination. Scand J Manag 27(3):307–321

    Article  Google Scholar 

  • King DR, Dalton DR, Daily CM, Covin JG (2004) Meta-analyses of post-acquisition performance: Indications of unidentified moderators. Strateg Manag J 25(2):187–200

    Article  Google Scholar 

  • Kogut B, Singh H (1988) The effect of national culture on the choice of entry mode. J Int Bus Stud 411–432

    Article  Google Scholar 

  • Kogut B, Zander U (1992) Knowledge of the firm, combinative capabilities, and the replication of technology. Organ Sci 3(3):383–397

    Article  Google Scholar 

  • Lane PJ, Lubatkin M (1998) Relative absorptive capacity and interorganizational learning. Strateg Manag J 19(5):461–477

    Article  Google Scholar 

  • Larsson R, Finkelstein S (1999) Integrating strategic, organizational, and human resource perspectives on mergers and acquisitions: a case survey of synergy realization. Organ Sci 10(1):1–26

    Article  Google Scholar 

  • Leroy F, Ramanantsoa B (1997) The cognitive and behavioural dimensions of organizational learning in a merger: an empirical study. J Manage Stud 34(6):871–894

    Article  Google Scholar 

  • Levitt B, March JG (1988) Organizational learning. Ann Rev Sociol 319–340

    Article  Google Scholar 

  • Li PP (2007) Toward an integrated theory of multinational evolution: the evidence of Chinese multinational enterprises as latecomers. J Int Manag 13(3):296–318

    Article  Google Scholar 

  • Lichtenthaler U (2009) Absorptive capacity, environmental turbulence, and the complementarity of organizational learning processes. Acad Manag J 52(4):822–846

    Article  Google Scholar 

  • Lichtenthaler U, Lichtenthaler E (2009) A capability-based framework for open innovation: Complementing absorptive capacity. J Manage Stud 46(8):1315–1338

    Article  Google Scholar 

  • Liu Y, Woywode M (2012) Chinese M&A in Germany. Springer

    Google Scholar 

  • Liu Y, Woywode M (2013) Light-touch integration of Chinese cross-border M&A: the influences of culture and absorptive capacity. Thunderbird Int Bus Rev 55(4):469–483

    Article  Google Scholar 

  • Lu J, Liu X, Wang H (2011) Motives for outward FDI of Chinese private firms: firm resources, industry dynamics, and government policies. Manag Organ Rev 7(2):223–248

    Article  Google Scholar 

  • Lubatkin M, Calori R, Very P, Veiga JF (1998) Managing mergers across borders: a two-nation exploration of a nationally bound administrative heritage. Organ Sci 9(6):670–684

    Article  Google Scholar 

  • Luo Y (2007) From foreign investors to strategic insiders: shifting parameters, prescriptions and paradigms for MNCs in China. J World Bus 42(1):14–34

    Article  Google Scholar 

  • Luo Y, Tung RL (2007) International expansion of emerging market enterprises: a springboard perspective. J Int Bus Stud 38(4):481–498

    Article  Google Scholar 

  • Marks ML, Mirvis PH (2010) Joining forces: making one plus one equal three in mergers, acquisitions, and alliances. Wiley, New York

    Google Scholar 

  • Mathews JA (2006) Dragon multinationals: new players in 21st century globalization. Asia Pac J Manag 23(1):5–27

    Article  Google Scholar 

  • Mayo A, Hadaway T (1994) Cultural adaptation-the ICL-Nokia-Data merger 1991–92. J Manag Dev 13(2):59–71

    Article  Google Scholar 

  • Miles MB, Huberman AM (1994) Qualitative data analysis: an expanded sourcebook. Sage

    Google Scholar 

  • Mirc N (2014) Human impacts on the performance of mergers and acquisitions. Adv Mergers Acquis 12:1–31

    Google Scholar 

  • Morosini P, Singh H (1994) Post-cross-border acquisitions: implementing ‘national culture-compatible’ strategies to improve performance. Eur Manag J 12(4):390–400

    Article  Google Scholar 

  • Morosini P, Shane S, Singh H (1998) National cultural distance and cross-border acquisition performance. J Int Bus Stud 137–158

    Article  Google Scholar 

  • Nahavandi A, Malekzadeh AR (1988) Acculturation in mergers and acquisitions. Acad Manag Rev 13(1):79–90

    Article  Google Scholar 

  • Napier NK (1989) Mergers and acquisitions, human resource issues and outcomes: a review and suggested typology. J Manage Stud 26(3):271–290

    Article  Google Scholar 

  • Nocke V, Yeaple S (2007) Cross-border mergers and acquisitions versus greenfield foreign direct investment: the role of firm heterogeneity. J Int Econ 72(2):336–365

    Article  Google Scholar 

  • Nonaka I (1994) A dynamic theory of organizational knowledge creation. Organ Sci 5(1):14–37

    Article  Google Scholar 

  • Pablo AL (1994) Determinants of acquisition integration level: a decision-making perspective. Acad Manag J 37(4):803–836

    Google Scholar 

  • Park BI (2009) Control mechanisms and knowledge acquisition in international joint ventures. Int Bus J 20(3):29–62

    Google Scholar 

  • Peng MW (2006) Making M&A fly in China. Harvard Bus Rev 84(3):26–27

    Google Scholar 

  • Ranft AL, Lord MD (2000) Acquiring new knowledge: the role of retaining human capital in acquisitions of high-tech firms. J High Technol Manag Res 11(2):295–319

    Article  Google Scholar 

  • Ranft AL, Lord MD (2002) Acquiring new technologies and capabilities: A grounded model of acquisition implementation. Organ Sci 13(4):420–441

    Article  Google Scholar 

  • Rottig D, Reus TH, Tarba SY (2014) The impact of culture on mergers and acquisitions: a third of a century of research. Adv Merg Acquis 12:135–172

    Article  Google Scholar 

  • Rouzies A (2013) Mixed methods: A relevant research design to investigate mergers and acquisitions. Adv Mergers Acquis 12:193–211

    Article  Google Scholar 

  • Sarala RM (2010) The impact of cultural differences and acculturation factors on post-acquisition conflict. Scand J Manag 26(1):38–56

    Article  Google Scholar 

  • Sarala RM, Vaara E (2010) Cultural differences, convergence, and crossvergence as explanations of knowledge transfer in international acquisitions. J Int Bus Stud 41(8):1365–1390

    Article  Google Scholar 

  • Sarala RM, Junni P, Cooper CL, Tarba SY (2014) A sociocultural perspective on knowledge transfer in mergers and acquisitions. J Manag

    Google Scholar 

  • Saunders M, Lewis P, Thornhill A (2009) Research methods for business students. Prentice Hall, Harlow

    Google Scholar 

  • Schein EH (1985) Defining organizational culture. Class Organ Theory 3:490–502

    Google Scholar 

  • Schweiger DM, Goulet PK (2000) Integrating mergers and acquisitions: an international research review. Adv Merg Acquis 1:61–91

    Article  Google Scholar 

  • Schweiger DM, Walsh JP (1990) Mergers and acquisitions: an interdisciplinary view. Res Pers Hum Resour Manag 8:41–107

    Google Scholar 

  • Schweizer L (2005) Organizational integration of acquired biotechnology companies into pharmaceutical companies: The need for a hybrid approach. Acad Manag J 48(6):1051–1074

    Article  Google Scholar 

  • Seth A, Song KP, Pettit RR (2002) Value creation and destruction in cross-border acquisitions: an empirical analysis of foreign acquisitions of US firms. Strateg Manag J 23(10):921–940

    Article  Google Scholar 

  • Shenkar O (1990) International joint ventures’ problems in China: risks and remedies. Long Range Plann 23(3):82–90

    Article  Google Scholar 

  • Shimizu K, Hitt MA, Vaidyanath D, Pisano V (2004) Theoretical foundations of cross-border mergers and acquisitions: a review of current research and recommendations for the future. J Int Manag 10(3):307–353

    Article  Google Scholar 

  • Shrivastava P (1986) Postmerger integration. J Bus Strategy 7(1):65–76

    Article  Google Scholar 

  • Sirower ML (1997) The synergy trap: how companies lose the acquisition game. Free Press, New York

    Google Scholar 

  • Song M, Droge C, Hanvanich S, Calantone R (2005) Marketing and technology resource complementarity: an analysis of their interaction effect in two environmental contexts. Strateg Manag J 26(3):259–276

    Article  Google Scholar 

  • Stahl GK, Voigt A (2005) Impact of cultural differences on merger and acquisition performance: a critical research review and an integrative model. Adv Mergers Acquis 4:51–82

    Article  Google Scholar 

  • Stahl GK, Voigt A (2008) Do cultural differences matter in mergers and acquisitions? A tentative model and examination. Organ Sci 19(1):160–176

    Article  Google Scholar 

  • Stahl GK, Mendenhall ME, Weber Y (2005) Research on sociocultural integration in mergers and acquisitions. Mergers Acquis Manag Culture Hum Resour 401–411

    Google Scholar 

  • Stokes P, Liu Y, Smith S, Leidner S, Moore N, Rowland C (2015) Managing talent across advanced and emerging economies: HR issues and challenges in a Sino-German strategic collaboration. Int J Hum Resour Manag 1-29

    Google Scholar 

  • Szulanski G (1996) Exploring internal stickiness: impediments to the transfer of best practice within the firm. Strateg Manag J 17(2):27–43

    Article  Google Scholar 

  • Trautwein F (1990) Merger motives and merger prescriptions. Strateg Manag J 11(4):283–295

    Article  Google Scholar 

  • Trichterborn A, Knyphausen-Aufseß Z, Schweizer L (2016) How to improve acquisition performance: the role of a dedicated M&A function, M&A learning process, and M&A capability. Strateg Manag J 37(4):763–773

    Article  Google Scholar 

  • Tse DK, Pan Y, Au KY (1997) How MNCs choose entry modes and form alliances: The China experience. J Int Bus Stud 779–805

    Article  Google Scholar 

  • Tsui AS, Zhao S, Abrahamson E (2007) What to study in China? Choosing and crafting important research questions. Manag Organ Rev 3(2):171–181

    Article  Google Scholar 

  • Vaara E, Monin P (2010) A recursive perspective on discursive legitimation and organizational action in mergers and acquisitions. Organ Sci 21(1):3–22

    Article  Google Scholar 

  • Vaara E, Sarala R, Stahl GK, Björkman I (2012) The impact of organizational and national cultural differences on social conflict and knowledge transfer in international acquisitions. J Manage Stud 49(1):1–27

    Article  Google Scholar 

  • Vermeulen F, Barkema H (2001) Learning through acquisitions. Acad Manag J 44(3):457–476

    Google Scholar 

  • Very P, Lubatkin M, Calori R (1996) A cross-national assessment of acculturative stress in recent European mergers. Int Stud Manag Organ 26(1):59–86

    Google Scholar 

  • Villinger R (1996) Post-acquisition managerial learning in Central East Europe. Organ Stud 17(2):181–206

    Article  Google Scholar 

  • Weber Y (1996) Corporate cultural fit and performance in mergers and acquisitions. Hum Relat 49(9):1181–1202

    Article  Google Scholar 

  • Weber Y, Fried Y (2011) Guest editors’ note: the role of hr practices in managing culture clash during the postmerger integration process. Hum Resour Manag 50(5):565–570

    Article  Google Scholar 

  • Weber Y, Tarba SY, Reichel A (2009) International mergers and acquisitions performance revisited—the role of cultural distance and post. Adv Mergers Acquis 8:1–17

    Article  Google Scholar 

  • Weber Y, Tarba SY, Rozen Bachar Z (2011) Mergers and acquisitions performance paradox: the mediating role of integration approach. Eur J Int Manag 5(4):373–393

    Article  Google Scholar 

  • Weber Y, Rachman-Moore D, Tarba SY (2012a) HR practices during post-merger conflict and merger performance. Int J Cross Cult Manag 12(1):73–99

    Article  Google Scholar 

  • Weber Y, Tarba SY, Rozen Bachar Z (2012b) The effects of culture clash on international mergers in the high tech industry. World Rev Entrep Manag Sustain Dev 8(1):103–118

    Google Scholar 

  • Xing Y, Liu Y (2015) Linking leaders’ identity work and human resource management involvement: the case of sociocultural integration in Chinese mergers and acquisitions. Int J Hum Resour Manag 1-28

    Google Scholar 

  • Yin RK (2013) Case study research: design and methods. Sage Publications

    Google Scholar 

  • Zaheer S (1995) Overcoming the liability of foreignness. Acad Manag J 38(2):341–363

    Google Scholar 

  • Zahra SA, George G (2002) Absorptive capacity: a review, reconceptualization, and extension. Acad Manag Rev 27(2):185–203

    Article  Google Scholar 

  • Zander U, Kogut B (1995) Knowledge and the speed of the transfer and imitation of organizational capabilities: an empirical test. Organ Sci 6(1):76–92

    Article  Google Scholar 

  • Zollo M, Singh H (2004) Deliberate learning in corporate acquisitions: post-acquisition strategies and integration capability in US bank mergers. Strateg Manag J 25(13):1233–1256

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Durham University, Millhill Ln, Durham, DH1 3LB, UK

    Jonathan H. Chen

  2. Durham, UK

    René Mahr

Authors
  1. Jonathan H. Chen
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. René Mahr
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Jonathan H. Chen .

Editor information

Editors and Affiliations

  1. Department of Management, University of Bologna, Bologna, Italy

    Alessandra Vecchi

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Chen, J.H., Mahr, R. (2019). Contrasting Germany and China: What Is the Influence of Culture and Learning on the PMI-Process?. In: Vecchi, A. (eds) Chinese Acquisitions in Developed Countries. Measuring Operations Performance. Springer, Cham. https://doi.org/10.1007/978-3-030-04251-6_4

Download citation

Publish with us

Policies and ethics

Search

Navigation