The Impact Of Organizational Cultural Intelligence On Cross-Border M&A Performance

With the accelerating process of economic globalization,more and more enterprises began to enter the international market,actively involved in the global trade cooperation.With the increasingly fast development of the overseas expansion for companies,cross-border m&a has gradually become one of the most important ways for companies to enter international market and develop competitive advantages.However,many factors lead to low success rate of cross-border merger and acquisition.Cross-Border m&a bring with foreign firms broad space for development and unlimited opportunities,followed by a set of problems and challenges closely related to cross-border management as well.Past research has demonstrated that 80%of the worldwide cross-border m&a failures can be attributed to cultural differences,which requires the organization to have a better understanding of the laws,culture and management style of the targeted country,thus Adapting and integrating different cultures.Under these circumstances,research on the influence of organizational cultural intelligence on cross-border m&a appears to be especially important.Despite the wealth of cultural intelligence on an individual level from Chinese and western scholars,there have been few studies on an organizational level.From the perspective of organizational cultural intelligence,a method of verified multi-case study is used by analyzing 4 typical companies.The results show that higher organizational cultural intelligence has a positive effect on cross-border m&a performance,and cultural distance moderate the relationship between organizational cultural intelligence and cross-border m&a performance.In order to promote the process of internationalization of enterprises and enhance their international competitiveness,we proposed some practical strategies and feasible suggestions on how to enhance internal organizational cultural intelligence,hoping to provide a reference for the joint ventures.