M&A and innovation: The role of integration and cultural differences—A central European targets perspective

A conceptual view of exergy destruction in mergers and acquisitions

“…The difference in cultural norms between two countries could improve cross-border acquisition performance as shown in a sample of 52 cross-border acquisitions that took place in Italy between 1987 and 1992 (Morosini et al, 1998). Besides, there exists studies showing the insignificant effect (no effect) of national cultural differences on post-innovation based on the argument that homogeneity in cultures between the two countries will ease the integration process of the acquired firm (Bauer et al, 2016).…”

“…Success is measured from a managerial perspective based on the ratings of managers involved in either parties of mergers and acquisitions (Bauer and Matzler, 2014) or integration metrics in the form of post-acquisition integration (Lee et al, 2015), human and task integration to innovation (Bauer et al, 2016), and post-merger integration and synergy .…”

“…Factors that are effective during the integration phase also comprise an important component of post-performance. As an example, human and task integrations act differently on performance as Bauer et al (2016) suggest that the former has a negative whereas task integration has a positive effect on post-performance measured in innovation outputs. However, in modeling mergers and acquisitions as equivalent to thermodynamic systems of mixing two matters at different states and environmental conditions, pre-merger or pre-acquisition conditions or factors become more relevant than the integration process characteristics.…”

“…Integration-innovation performance, shareholder value, synergy realization, effective integration, cross-border acquisition performance Ahammad et al (2016), Bauer et al (2016), Morosini et al (1998), Stahl and Voigt (2008), Van der Vennet (1996), Van Oudenhoven and Van Der Zee (2002) Cultural distance…”

The Pattern of M & A Integration: A Literature Review

“…Cultural distance is caused by the heterogeneity of a country or organization. Different national cultures mean differences in enterprise structure and management thought [50], which creates the complexity in communication [51] that might harm the integration performance from many aspects [52]. It is shows that the negative impact of cultural distance is particularly evident in the case of deep integration [33], which usually lead to an integration pattern of high autonomy.…”