In this paper, CEOs are considered as ‘cognizers’ charged with integrating views in the top management team; a role which should require high cognitive complexity especially in diversified multinational corporations. A methodology for studying top managers' cognitive complexity is described and then applied to a sample of 26 CEOs. The CEOs' cognitive maps of the structure and of the dynamics of their industry are analyzed in terms of their degree of complexity, in relation to the breadth of the business portfolio of the firm, its geographic scope and the links the firm has with foreign parents. The results of this exploratory test generally confirm the principle of requisite cognitive complexity, and reveal a new set of more precise hypotheses linking particular dimensions of the scope of the firm with particular dimensions of CEOs' cognitive complexity.
This paper is based on an exploratory field study of the relations between corpor ate culture and economic performance. The method of assessing a company's culture is presented, then hypotheses on relations between values, management practices and economic performance are proposed and discussed. The study was limited to five French single business companies operating in mature industries with a differentiation strategy. Cultural intensity and homogen eity and some cultural attributes appeared to be related to the firms' growth. On the other hand, the relations between profitability and the company's cultural attributes were less significant. Some hypotheses are generated for further validation.
Top managers of British and French firms, which were recently acquired by either British or French firms, were surveyed as to their perceptions of the administrative approach—reflected in integrating mechanisms—used by the acquiring firms to establish headquarters-subsidiary control. Four types of integrative mechanisms were examined: structural, systems, social, and managerial. A multiple analysis of covariance model, coupled with a two-nation (British and French), two-merger type (domestic, cross-national) sampling design, found evidence that the administrative approaches used by managers during merger integration from two nations partially reflect their different heritages, and that these differences are consistent with national differences and the theoretical perspectives of institutional development and cross-cultural studies. Our findings, while exploratory, provide insight into the administrative difficulties of managing across borders and help us understand why many cross-national firms continue to use ethnocentric approaches in spite of the incentives for adopting a transnational approach. Moreover, our findings add one more voice to a growing chorus calling for a theory of the firm, as embedded, institutionally, culturally, and historically.
This paper analyzes the influence of national culture on the integration mechanisms exercised in international acquisitions. The study of 75 international acquisitions in Europe (France and the United Kingdom) shows that firms are influenced by their national administrative heritage when they acquire companies abroad.For instance, the French exercise higher formal control of the strategy and the operations, and lower informal control through teamwork than the Americans when they buy firms in the United Kingdom. The Americans exercise higher formal control through procedures than the British when they buy firms in France. As some of these aspects of control were found to be linked with the attitudinal and/or economic performance of the acquired company, we argue that being conscious of the influence of a national administrative heritage should help anticipate cultural problems in the integration process following international acquisitions.
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