Culture clashes in cross-border mergers and acquisitions: A case study of Sweden's Volvo and South Korea's Samsung

• The study investigates the impact of national cultural differences on post-acquisition integration processes.
• We examine the cross-border acquisition between Volvo and Samsung.
• Semi-structured interviews were conducted twice over an 11-year interval.
• The classic concept of culture can correctly predict what kinds of culture-dependent problems may occur during post-acquisition integration processes.
• However, the social constructivist concept of culture can better predict whether these problems may occur.

This study investigates the way in which employees from acquiring and acquired firms experience cultural differences during post-acquisition integration. We examined Volvo Construction Equipment's acquisition of Samsung Heavy Industry's division of construction equipment. Two ontologically bipolar conceptualizations of culture – the classic and social constructivist concept of culture – are discussed. Semi-structured interviews were conducted at Volvo Construction Equipment Korea twice over an 11-year interval, in 2001 and 2012, respectively. The results suggest that while the classic concept of culture correctly predicts what kinds of culture-dependent problems may occur during post-acquisition integration, the social constructivist concept of culture can better predict whether or not these problems may occur.