Research On Culture Integration In Cross-Border M&As Of Chinese Enterpriees

One of the important features manifested in the contemporary world in the process of economic development is cross-border mergers and acquisitions, and the amount and the number of cross-border have made rapid progress in the past two to three decades. At the same time, with the continuous development of Chinese reform and opening up, the increasing of Chinese companies’competitiveness, the paces of "going out" are speeding up, and Chinese enterprises are becoming an increasingly active force in the market of cross-border mergers and acquisitions in the world. However the failure rate of cross-border mergers and acquisitions is very high whether it is from the world or from our country. Cultural difference and the the difficulty of culture integration caused by cultural difference is considered to be a very important factor which leads to the failure of cross-border mergers and acquisitions.From the review of current research, the existing analytical framework of cultural integration is not enough to solve cultural integration challenges encountered in cross-border mergers and acquisitions. Base on the tri-factors of culture, acquiring enterprise and target enterprise, a cultural integration model of cross-border mergers and acquisitions is presented, and the three elements are cultural compatibility between acquiring enterprise and target enterprise, the behavior of cultural integration of acquiring enterprise to target company and the of target enterprise to acquiring company. The results of the study show that: the cultural identity of target enterprise to acquiring company plays the most important role to the success of cross-border. The cultural compatibility between acquiring enterprise and target enterprise and the behavior of cultural integration of acquiring enterprise to target company both have influence on the success of cross-border mergers and acquisitions through the medium of cultural identity. The research also found that the direct relationship between the behavior of cultural integration of acquiring enterprise to target company and the performance of cross-border mergers and acquisitions is nonlinear. Based on the cultural integration model of tri-factors, a series of gradually advancing research have been carried out.The tri-factors cultural integration model was presented in study one. Based on the research of previous studies, the new model consists of three important factors: cultural compatibility between acquiring enterprise and target enterprise, the behavior of cultural integration of acquiring enterprise to target company and the of target enterprise to acquiring company. From the culturl integration model, we can analysize the characteristics of each of the constituents of this model and the relationship between these elements. This model contains the original field of academic achievements, and at the same time it contains the forefront research issues in the field of cultural research:the study of psychological factors of human resourse in the analysis framework of culture in cross-border mergers and acquisitions. The model has important theoretical and practical significance.Drawing on the model of cultural integration of immigration, study two makes the game analysis of cultural integration of cross-border mergers and acquisitions and derives the mathematical relationship between the three elements. The purposes of the study of this part are as follows:at first, it will tell a quantitative relationship between the factors based on the qualitative reaearch of the model in study on. And at the same time, it will provide a simulation platform for the next part of the simulation. After the mathematical treatment of the culture integration model of cross-border mergers and acquisitions, the relationship between the various elements of the model will be clearer and more logical.The multi-agent simulation method was used to analyze the dynamic evolution of cultural integration in cross-border mergers and acquisitions in study three. The essence of cultural integration in cross-border mergers and acquisitions is a dynamic development process, with the use of multi-agent simulation method it is possible to know when one or two or more elements change, the results of cross-border mergers and acquisitions will how to change. And it allows us to better understand the evolution of the law of cultural integration in cross-border mergers and acquisitions and have more thorough understanding of the nature of cultural integration in cross-border mergers and acquisitions. An empirical analysis with the survey data of cultural integration of cross-border mergers and acquisitions of Chinese enterprises was carried out to verify the effectiveness of the proposed model of cultural integration in study four. It is a weak point of the research in this field to analysize the quantitative relationship between the results of cross-border mergers and acquisitions and the integration of culture of Chinese enterprises. In this study, the questionnaire data obtained from Chinese emterprises will be used to test the relationship between cultural integration and the performance of cross-border mergers and acquisitions of Chinese enterprises. The empirical results will reveal the relationship between the three elements, the size of role and the degree of importance; and verify the validity of the model proposed by the empirical results.Comparative analysis of typical cases of the cultural integration in cross-border mergers and acquisitions of Chinese enterprises will carried out in sudty five. In the part of the artilee, the analysis of typical cases of cultural integration in cross-border mergers and acquisitions of Chinese enterprises will presented, and it will show the successful experience and lessons of Chinese enterprises in culture integration in cross-border mergers and acquisitions by way of comparative analysis, and they can be used to verify the effectiveness of the culture integration model. At the same time, comparative analysis allows us to discover some laws existing in cross-border mergers and acquisitions of Chinese enterprises, and provide meaningful reference to cultural integration in cross-border mergers and acquisitions of Chinese enterprises, and promote the healthy development of cross-border mergers and acquisitions of Chinese enterprises.