Cultural differences and capability transfer in cross-border acquisitions: the mediating roles of capability complementarity, absorptive capacity, and social integration

Abstract

This paper presents an integrative model of the impact of cultural differences on capability transfer in cross-border acquisitions. We propose that cultural differences affect the post-acquisition capability transfer through their impact on social integration, potential absorptive capacity, and capability complementarity. Two dynamic variables – the use of social integration mechanisms, and the degree of operational integration of the acquired unit – are proposed to moderate the effects of cultural differences on social integration and potential absorptive capacity. The implications for acquisition research and practice are discussed. Journal of International Business Studies (2007) 38, 658–672. doi:10.1057/palgrave.jibs.8400287

The Process of Postmerger Integration: A Review and Agenda for Future Research

“…These include codified tools, e.g., checklists and integration manuals (Zollo & Singh); higher-order routines, in the form of risk management practices (Heimeriks et al, 2012); and specific sociocultural interventions (Björkman et al, 2007;Schweiger & Goulet, 2005). Yet we know relatively little regarding how these tools and practices are created (or perhaps borrowed); how they are selected; and how they are deployed.…”

“…Many, if not most, of the PMI tools are intended to foster the efficiency of implementation, often revealing the 'dark side' of acquirer-to-target knowledge transfer (e.g., Reus, Lamont, & Ellis, 2016), and thus their use may have counterproductive effects in terms of sociocultural integration. There are specific tools and methods used to promote sociocultural integration, but research about them has been limited (Björkman et al, 2007;Schweiger & Goulet, 2005). For instance, we know little regarding how PMI tools affect the building of trust and transitional identity.…”

“…Mixed findings regarding the impact of cultural differences on acquisition performance have led scholars to develop models to reconcile these seemingly contradictory effects (Björkman, Stahl, & Vaara, 2007;). In a seminal theoretical paper, Nahavandi and Malekzadeh (1988, p. 81) drew from research in anthropology and cultural psychology to provide a model of acculturation, defined as "changes induced in (two cultural) systems as a result of the diffusion of cultural elements in both directions."…”

“…Conversely, lack of alignment will damage performance. Björkman, Stahl, and Vaara (2007) proposed a theoretical process model that elucidates how cultural differences affect post-acquisition capability transfer through their impact on social integration, potential absorptive capacity, and capability complementarity. They predicted that the effect of cultural differences on social integration will be negative, but moderated by the use of sociocultural integration 30 mechanisms and by operational integration.…”

Why and How Does Shared Language Affect Subsidiary Knowledge Inflows? A Social Identity Perspective

“…Various interpersonal and intergroup determinants affect, and may interact in affecting the development of a shared identity (Tajfel & Turner, 1979), including the degree to which the HQ and subsidiary national cultures differ (e.g., Björkman et al, 2007) or shared racial or ethnic background (e.g., Mehra, Kilduff, & Brass, 1998). We realize that a specific focus on shared language, as any specific focus on a particular determinant, provides a limited perspective on social identity, a concept that is so complex that it can only be fully understood when considering the interplay of all determinants together.…”