There is a high failure rate in cross-border M&A. Many of them fail due to cultural differences of the combining organisations. This study examines the role of culture in cross-border M&A regarding national and organisational culture among other factors that are important for a successful integration strategy in M&A across borders. The factors discussed are based on empirical findings, and on literature that in the analysis, proved to corroborate the findings of the primary data, or insights based on these findings.
Since many authors comply with DaimlerChrysler having failed because of two heterogeneously organisational cultures and different management styles trying to combine into a new culture, this topic was of special interest of the researcher. DaimlerChrysler is being used as a case study approach in this research to find out how important the role of culture in cross-border M&A is. Furthermore, it has been observed, that the controversial evidence in the literature if many cross-border M&A fail due to cultural differences is of interest concerning the research objectives and the literature revealed that in this area little research is done so far.
Therefore, one objective of this research is to fill the gap in the literature regarding national and organisational culture when integrating one firm with another or by forming an entirely new one in cross-border M&A The analysis of primary data in form of semi-structured interviews has uncovered that the cause of the cultural differences is not always apparent and ignored particularly in business. However, cultural differences are not the only cause for cross-border M&A failure as there are other important factors to take into account.
Inhaltsverzeichnis (Table of Contents)
- 1 Introduction
- 1.1 Nature and scope of the study
- 1.2 The chronicles of the DaimlerChrysler AG
- 1.3 Research question and objectives
- 1.4 Research overview
- 2 Literature Review
- 2.1 The generic rational for a deliberate mergers and acquisitions strategy
- 2.1.1 The history of mergers and acquisitions waves
- 2.1.2 Reasons for mergers and acquisitions
- 2.1.3 Sustainability and competitive advantage
- 2.1.4 Gain human assets
- 2.1.5 Core competence
- 2.1.6 Capability creating
- 2.2 Post-merger problems in cross-border mergers and acquisitions
- 2.2.1 Integration approaches
- 2.2.2 Cultural differences
- 2.3 Choice of right partner for a successful mergers and acquisitions process
- 3 Methodology
- 3.1 Research philosophy
- 3.2 Research approach
- 3.3 Research strategy
- 3.4 Research choice and data collection methods
- 3.5 Analysis of qualitative data
- 3.6 Ethical issues
- 3.7 Limitations
- 4 Key Findings & Data Analysis
- 4.1 Analysis of interviews associated with key factors from literature
- 5 Conclusion and recommendations
- 5.1 Limitations
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research project aims to investigate the effects of cross-border mergers and acquisitions (M&A) and determine the relationship between the cultural backgrounds of merging companies and the high failure rate often associated with such ventures. The DaimlerChrysler AG merger serves as a case study. The study explores the reasons behind cross-border M&A strategies, examines the risks and failures involved, and assesses the generalizability of findings to other similar mergers.
- Strategic implications of cross-border M&A, including capability creation, human asset acquisition, competitive advantage, sustainability, and core competencies.
- Post-merger challenges, such as cultural differences, synergy seeking, integration approaches, and partner selection in M&A.
- The impact of cultural differences on the success or failure of cross-border M&A.
- Analysis of the DaimlerChrysler merger as a case study to illustrate the identified themes.
- Assessment of the generalizability of findings to other cross-border M&A situations.
Zusammenfassung der Kapitel (Chapter Summaries)
1 Introduction: This chapter lays the groundwork for the research by providing background information on mergers and acquisitions (M&A), focusing on the DaimlerChrysler merger. It defines M&A, distinguishes between mergers, acquisitions, and leveraged buyouts, and introduces the research question and objectives. The chapter also outlines the structure of the research paper and highlights the high failure rate of cross-border M&A, particularly concerning integration and synergy due to cultural differences. The DaimlerChrysler case is presented as a prime example to investigate these issues.
2 Literature Review: This chapter delves into existing literature on M&A, examining the rationale for deliberate M&A strategies, historical M&A waves, reasons for M&A, the role of sustainability and competitive advantage, and the importance of gaining human assets and core competencies. It also analyzes post-merger problems in cross-border M&A, including integration approaches, cultural differences, and the crucial aspect of selecting the right partner for a successful M&A process.
3 Methodology: This chapter details the research methodology employed in the study, outlining the research philosophy, approach, strategy, and data collection methods. It explains the analysis of qualitative data, addresses ethical considerations, and acknowledges any limitations of the research design. The chapter provides a clear and comprehensive explanation of how the research was conducted to ensure transparency and rigor.
4 Key Findings & Data Analysis: This chapter presents the key findings of the research, analyzing data collected through interviews and relating them to the key factors identified in the literature review. It provides a detailed examination of the evidence gathered to support the research conclusions (though the conclusions themselves are not detailed here to avoid spoilers).
Schlüsselwörter (Keywords)
Mergers and Acquisitions (M&A), Cross-border M&A, DaimlerChrysler, Cultural Differences, Integration, Synergy, Competitive Advantage, Sustainability, Case Study, Post-merger Problems, Strategic Alliances, Failure Rate.
Frequently Asked Questions: A Comprehensive Language Preview
What is the subject of this research?
This research project investigates the effects of cross-border mergers and acquisitions (M&A), focusing on the relationship between the cultural backgrounds of merging companies and the high failure rate often associated with such ventures. The DaimlerChrysler AG merger serves as a primary case study.
What are the key objectives of this research?
The study aims to explore the reasons behind cross-border M&A strategies, examine the risks and failures involved, and assess the generalizability of findings to other similar mergers. Specific themes include the strategic implications of cross-border M&A (capability creation, human asset acquisition, competitive advantage, sustainability, and core competencies), post-merger challenges (cultural differences, synergy seeking, integration approaches, and partner selection), and the impact of cultural differences on M&A success or failure.
What is the structure of the research paper?
The paper is structured into five chapters: 1. Introduction (setting the scene and defining the research question); 2. Literature Review (examining existing research on M&A); 3. Methodology (detailing the research approach and methods); 4. Key Findings & Data Analysis (presenting the findings); and 5. Conclusion and recommendations (summarizing the results and providing recommendations).
What methodology is used in this research?
The methodology chapter details the research philosophy, approach, strategy, and data collection methods used. It explains the analysis of qualitative data, addresses ethical considerations, and acknowledges limitations of the research design. The specific methods are not detailed in this preview.
What are the key findings of this research (preview)?
A detailed analysis of the key findings, including the analysis of interviews and their relation to factors identified in the literature review, is presented in Chapter 4. This preview does not contain the specific conclusions to avoid spoilers.
What are the key themes explored in this research?
Key themes include strategic implications of cross-border M&A (capability creation, human assets, competitive advantage, sustainability, core competencies), post-merger challenges (cultural differences, integration approaches, partner selection), and the impact of cultural differences on M&A success or failure. The DaimlerChrysler merger serves as a case study to illustrate these themes.
What are the limitations of this research?
Limitations of the research design are discussed in both the methodology and conclusion chapters. Specific limitations are not detailed in this preview.
What are the keywords associated with this research?
Keywords include: Mergers and Acquisitions (M&A), Cross-border M&A, DaimlerChrysler, Cultural Differences, Integration, Synergy, Competitive Advantage, Sustainability, Case Study, Post-merger Problems, Strategic Alliances, Failure Rate.
What is the role of the DaimlerChrysler merger in this research?
The DaimlerChrysler merger serves as a primary case study to illustrate the themes of cross-border M&A, particularly the impact of cultural differences on the success or failure of such ventures.
Where can I find more details about this research?
The full research paper provides detailed information on the methodology, findings, and conclusions. This preview provides a comprehensive overview of the content.
- Quote paper
- Miriam Mennen (Author), 2008, Why do cross-border M&A fail so often? The role of cultural differences in the case study of the DaimlerChrysler AG, Munich, GRIN Verlag, https://www.grin.com/document/145624
