A Study On The Cross-Cultural Integration After Enterprises' Merge And Acquisition

With the quick development of economic globalization, Merge and acquisition has become an important way for an enterprise to enlarge its operation scale and sharpen its winning edge. Numerous studies have found that the integration after M&A is much more complicated than merge and acquisition itself and thus merit our attention. Statistics also suggest that among the various integration activities, the incompetence of cultural integration is the first and direct reason responsible for the failure of integration after M&A.When we refer to the M&A among nations, it is a battlefield rather than a rosy dream. A proper aim and a win-win contract is only the beginning for the M&A, the strategic planning, the integration of business and the management after the integration program will all be key factors determining the future of those enterprises. As for various integration factors, culture has been putting on the top of the list because of its utmost importance.Nowadays, Chinese corporations who have dealt with cross-broader M&A are facing the challenge of the cultural integration. How to solve the difference and bridge that gap as soon as possible will largely determine the long-term development for most corporations. What kind of role does cultural factor play in M&A? How to realize the cross-cultural integration in an effective way? How to get the core competence after the merge and acquisition activity? This article will try to carry out a thorough analysis and research in the area of cultural integration. What's more, on the basis of research findings from home and abroad as well as the thought on those cases dealing with the cultural integration, the author will give a possible model in finding the successful way of cross-cultural integration for most Chinese corporations.This paper is organized into five chapters. Chapter one provides an introduction of basic cultural theory. A fundamental perspective developed here is the view that culture involves learned and shared behaviors, norms, values, attitudes, and norms. The author promotes this idea and argues for it in the following part, where I also indicate that Hofstede's cultural dimensions is very important in analyzing the culture differences and cultural conflict which are the direct reasons for cross-cultural integration. Chapter two critically discuses the necessity of cross-cultural integration and presents several models of corporate cultural integration. In order to lend clarity to the readers, the author has combined several little examples to illustrate her point of view. Then, Chapter three devotes to the procedure and plan for a cultural integration. The author intends to propose an applicable way of effective and efficient integration process. Having defined the nature and significance of cross-cultural integration, the author then brings the resulting theory to bear specific issues. Thus, Chapter four examines three typical cases to explain several areas meriting particular attention from Chinese firms who are and about to engage in cross-cultural integration after the M&A has taken place.