In times of progressing globalisation companies are continuing to orientate themselves more and more internationally. Mergers and acquisitions are for instance a possibility to expand their competencies through the co-operation with appropriate partners respectively to take-over another company, in this way ones position in the global competition will be further im-proved. That is why the number of mergers and acquisitions were permanently rising within the last few years. After a slow-down in 2001, the investment in other firms has started again from 2004 so that by 2006 the number of deals rose to almost 39.000.
This evolution of world-wide merger and acquisition deals within the last years is represented in the following figure: [...] Referring to the M&A NOTE of the European Commission, the average value of cross-border deals especially has been consistently higher compared to domestic deals. This can be explained by the fact that about 80% of these activities are concentrated in the EU, the USA and Asia (2007, p.2 et sqq.). That means that in times of incremental internationalisation, trade is in particular taking place between these economic, well-developed areas - as a result multicultural strategic alliances are assumed in order to strengthen their position in global competition. According to a report by the German news agency dpa-AFX, a new record in world-wide transactions was reached in 2007. Compared to the previous year a plus of 1/5th has been realised (Finanznachrichten.de, 20th December 2007).
Table of Contents
1. Introduction
1.1 Stylised facts
1.2 Reasons for the International Orientation of Companies
2. The relevance of the “culture” factor within strategic alliances
2.1 Definition of culture
2.1.1 The relationship between culture and behaviour
2.1.2 A country’s culture versus corporate culture
2.2 Culture differences
2.2.1 The problems of cultural differences
2.2.2 Consequences of cultural differences
2.3 Culture shock
3. Intercultural management for problem-solving
3.1 The role of cultural mediators
3.2 A developmental expatriate model
4. DaimlerChrysler’s experiences of international strategic alliances
5. Conclusion
6. Bibliography
Objectives and Topics
The primary objective of this paper is to examine the vital role of intercultural management within international strategic alliances, identifying potential causes of cultural friction and proposing strategies to mitigate negative outcomes such as culture shock. The work explores how the alignment of organizational and national cultural values is critical for the success of global business ventures.
- The impact of globalization on international business strategies.
- Theoretical definitions of culture and its influence on professional behavior.
- Challenges inherent in bridging divergent corporate and national cultures.
- Developmental models for expatriates and the role of cultural mediators.
- Case study analysis of the failed DaimlerChrysler merger.
Excerpt from the Book
A developmental expatriate model
As already described before executives going abroad have to face a double-edged challenge: next to unfamiliar and new stressors they also have to recognise that coping responses working at home do not do so in a foreign country. Hence, the new environmental conditions have to be understood at first. Deducing from that, one’s former repertoire of coping responses has to be revised in the second step.
That is why the ability of identifying themselves with the host and parent culture is very important within the process of adjusting. Referring to Sanchez et al. (2000, p.96) an internal conflict amongst expatriates is likely to occur without “learning to live with the paradox of dual identification”. Thus, next to the willingness of undergoing a personal transformation, a cross-cultural competence training and repatriation plan are necessary for the adjustment of an expatriate in a healthy way. Otherwise the uneven relationship between the new environment and the executive will increase stress so that one’s well-being is reduced.
In the following, based on the expatriate model of Sanchez et al., the main stressors for each stage as well as appropriate solutions therefore will be presented.
Summary of Chapters
1. Introduction: Outlines the growing trend of international mergers and acquisitions in an era of globalization and establishes why strategic alliances are necessary for competitiveness.
2. The relevance of the “culture” factor within strategic alliances: Defines culture as a set of shared norms and values, analyzing how country-specific versus corporate cultures create potential conflicts.
3. Intercultural management for problem-solving: Introduces professional frameworks, such as cultural mediators and developmental models, to manage and reduce intercultural friction.
4. DaimlerChrysler’s experiences of international strategic alliances: Provides a practical case study illustrating how the failure to reconcile distinct organizational and national cultures led to the collapse of a major alliance.
5. Conclusion: Summarizes the study’s findings on the critical necessity of intercultural competence and strategic cultural alignment for enduring corporate success.
6. Bibliography: Lists the academic and secondary sources used to ground the analysis of intercultural management theory and case studies.
Keywords
Intercultural Management, Strategic Alliances, Globalisation, Culture Shock, Corporate Culture, Expatriate Model, Cultural Mediators, DaimlerChrysler, Organizational Behaviour, Cross-cultural Competence, International Business, Mergers and Acquisitions, Conflict Resolution, Dual Identification, Global Strategy.
Frequently Asked Questions
What is the core focus of this research paper?
This paper focuses on the critical importance of intercultural management within international strategic alliances, specifically addressing how cultural differences can lead to failure and how they can be effectively managed.
What are the central thematic areas covered?
The key themes include the impact of globalization, the relationship between culture and human behavior, the distinction between national and corporate cultures, and strategies for managing expatriate employees.
What is the primary goal of the author?
The goal is to provide theoretical insights and practical instruments, such as cultural mediation and training models, that help organizations avoid culture shocks and improve the success rate of their international partnerships.
Which scientific methods does the paper employ?
The paper utilizes a qualitative research approach, incorporating academic literature reviews, management theory analysis, and a case study evaluation of the DaimlerChrysler merger.
What is addressed in the main body of the work?
The main body examines the definitions of culture, the challenges of intercultural friction, developmental models for expatriates, and a detailed analysis of the cultural clashes that contributed to the demise of the DaimlerChrysler alliance.
Which keywords best characterize this work?
The work is defined by terms such as intercultural management, strategic alliances, culture shock, organizational behavior, and international business strategy.
Why did the DaimlerChrysler merger serve as a key case study?
The merger is used as a prominent example of how ignoring cultural differences—focusing only on financial metrics while overlooking organizational and national value clashes—can lead to the ultimate failure of a strategic alliance.
How does the author define a "cultural mediator"?
A cultural mediator is defined as an individual who acts as a bridge between different constituencies within an alliance, translating cultural knowledge and fostering shared meanings to prevent clashes.
What is the significance of the "dual identification" paradox?
The paradox refers to the internal conflict expatriates face when trying to identify with both their parent company's culture and the new host country's culture, requiring successful adjustment through a balance between both.
- Quote paper
- Bachelor Martin Koenig (Author), 2008, The international orientation of companies, Munich, GRIN Verlag, https://www.grin.com/document/117017
