On Culture Integration In Cross-Border M&A By Chinese Enterprises

As being an important approach for transnational companies to execute their global strategies, cross-border M&A becomes more common in modern economy. In the process of following the Going-Out strategy, more and more Chinese corporations also take part in the tides of cross-border M&A. However, the success rate of such attempts is not so high. One important reason for that is the imperfection of culture integration. As far as the culture integration of Chinese corporations'cross-border M&A, the existing researching fruits are not helpful enough for their specialty. So this thesis tries to study this subject by analyzing which culture ingredients should be integrated when Chinese corporations performing mergers and acquisitions, especially in the case of that the objects are corporations from developed countries, and how to integrate. Shortly speaking, what to be integrated and how to integrate are studied in this paper.As for what to be integrated, it can be divided into two hierarchies. Firstly, from the universal meaning, based on the view of contracts in culture, this thesis tries to illustrate three main ideas: the national culture of host countries should be respected; part of the business culture of the host should be adapted and learned; the corporate cultures of two parts of the M&A should be integrated. Secondly, from the specialty of Chinese corporation cross-border M&A, based on the view of resources in culture, Chinese corporations may absorb the ingredients of the rationality, computability and trust based on regimes and contracts in western business cultures; at the same time, absorb the scientific management and so forth of western corporation cultures.As for how to integrate, this thesis analyzes the mechanism that culture plays the role in operation and management and constructs a screwy model which is based on trust, revolved around the interaction of value and behavior, pushed by vision, beneficial stimulation, training and some other dynamics.