Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1001801 | Journal of World Business | 2006 | 10 Pages |
Abstract
This paper examines the effect of national cultural distance on the performance of foreign acquisitions. While some studies have argued that this effect should be negative and others that it should be positive, we argue that this depends on the level of post-acquisition integration. We hypothesize that large differences in national culture reduce foreign acquisition performance if the acquired unit is tightly integrated into the acquirer, but that they enhance acquisition performance if post-acquisition integration is limited. Analyzing a sample of 102 cross-border acquisitions by Dutch firms in 30 countries, we find strong empirical support for this hypothesis.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Arjen H.L. Slangen,