Post-merger Integration - Management of Intercultural Differences between a Japanese Corporation and a German Hidden Champion

Abstract

The purpose of this paper is to indicate obvious aspects with regard to differences in national and organisational cultures in co-operations between two international companies and to give suggestions how to resolve them. Based on a series of qualitative and quantitative interviews, the following research presents an acquisition from a Bavarian, countryside medium-sized German automation company (PLC company with roughly EUR 30 million Sales and 250 employees) by an international Japanese machinery building corporation (acting in same field of business with a stronger focus on the machinery building, stock listed co-operation with roughly EUR 3 billion sales and 14.000 employees). The article outlines cultural and management integration strategies to ensure successful collaboration for the future to secure the strength of the German medium-sized company. The findings show that the personal readiness to understand, adapt and tolerate the cultural differences helps to facilitate negotiations and though, the process of cultural integration is a soft topic and takes several years, it can and should be planned systematically and precisely integrated by the top management to achieve effective change for the realisation of synergies. The elaborated suggestions are helpful for managers in general, because the often underestimated topic of cultural integration, is at least as important for the valuable outcome of the co-operation as strategic and organisational changes.