IDEAS home Printed from https://ideas.repec.org/a/clj/noecrw/v1y2017i1p264-272.html
   My bibliography  Save this article

Managing the Intercultural Issues in Automotive Industry Mergers and Acquisitions

Author

Listed:
  • Iulian WARTER

    (“Alexandru Ioan Cuza” University, Iaºi, Romania)

  • Liviu WARTER

    (“Alexandru Ioan Cuza” University, Iaºi, Romania)

Abstract

Mergers and acquisitions are a strategic choice to grow quicker, enter new markets and maximize companies’ capabilities which otherwise would not have been possible. Within the automotive industry this phenomenon has been seen repeatedly with examples like the Mitsubishi - Daimler, Jaguar - Ford, Daimler-Chrysler, Seat-Volkswagen, Daewoo-General Motors and Land Rover -Ford. Although M&A activity has trended directionally consistent with automotive assembly volume, there are some failure cases within automotive industry M&As (e.g. Rover-BMW). In this paper, the focus will be on the intercultural issues of the M&A phenomenon: attitudes, cultures, values, tradition etc. The underestimation of the cultural factors has significant impact on why M&A operations sometimes fail to achieve the predefined goals. It is of vital importance for the automotive companies to understand and be aware of these intercultural issues in order to be successful in their merger or acquisition. The understanding and awareness of cultural differences have to be built and developed in order to avoid cultural conflicts and clashes.

Suggested Citation

  • Iulian WARTER & Liviu WARTER, 2017. "Managing the Intercultural Issues in Automotive Industry Mergers and Acquisitions," North Economic Review, Technical University of Cluj Napoca, Department of Economics and Physics, vol. 1(1), pages 264-272, October.
    • Handle: RePEc:clj:noecrw:v:1:y:2017:i:1:p:264-272
    as

    Download full text from publisher

    File URL: http://ner.cunbm.utcluj.ro/wp-content/uploads/2017/10/NER-2017.30.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Barmeyer, Christoph & Mayrhofer, Ulrike, 2008. "The contribution of intercultural management to the success of international mergers and acquisitions: An analysis of the EADS group," International Business Review, Elsevier, vol. 17(1), pages 28-38, February.
    2. Rongxing Guo, 2012. "Introduction to Intercultural Economics," SpringerBriefs in Economics, Springer, edition 127, number 978-3-642-29276-7, April.
    3. Christoph Barmeyer & Ulrike Mayrhofer, 2008. "The contribution of intercultural management to the success of international mergers and acquisitions: an analysis of the EADS group," Post-Print hal-00567737, HAL.
    4. Dumitru ZAIT & Liviu WARTER & Iulian WARTER, 2014. "Cross-Cultural Incentives For The Fdi," CrossCultural Management Journal, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 1, pages 209-221, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rouine, Ibtissem, 2018. "Target country's leadership style and bidders' takeover decisions," International Review of Financial Analysis, Elsevier, vol. 60(C), pages 17-29.
    2. Barmeyer, Christoph & Davoine, Eric, 2019. "Facilitating intercultural negotiated practices in joint ventures: The case of a French–German railway organization," International Business Review, Elsevier, vol. 28(1), pages 1-11.
    3. Ludivine Chalençon, 2013. "Le Contrôle de Gestion dans les Fusions-Acquisitions Internationales : un Outil d'Intégration ?," Post-Print halshs-00864098, HAL.
    4. Zhe Li & Ping Wang & Tianlong Wu, 2021. "Do foreign institutional investors drive corporate social responsibility? Evidence from listed firms in China," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 48(1-2), pages 338-373, January.
    5. Christoph Barmeyer & Ulrike Mayrhofer, 2010. "Does Culture Shape the Balance of Power in Multinational Companies ? The Case of the EADS Group," Post-Print halshs-00638849, HAL.
    6. Anita Kyurova, 2017. "Communication As A Managerial Tool For The Processes In Organizations," Entrepreneurship, Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD, vol. 5(2), pages 61-69.
    7. Reynolds (née Schnurr), Noelia-Sarah & Teerikangas, Satu, 2016. "The international experience in domestic mergers – Are purely domestic M&A a myth?," International Business Review, Elsevier, vol. 25(1), pages 42-50.
    8. Ludivine Chalençon, 2013. "Le Controle De Gestion Dans Les Fusions-Acquisitions Internationales : Un Outil D'Integration ?," Post-Print hal-00991712, HAL.
    9. Li, Jiatao & Li, Peixin & Wang, Baolian, 2016. "Do cross-border acquisitions create value? Evidence from overseas acquisitions by Chinese firms," International Business Review, Elsevier, vol. 25(2), pages 471-483.
    10. Juzhang Feng & Sha Tang & Junhao Zhong, 2024. "Can corporate environmental, social, and governance performance influence foreign institutional investors to hold shares? Evidence from China," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4310-4330, July.
    11. Bernardo A. Delicado & Alejandro Salado & Rafael Mompó, 2018. "Conceptualization of a T‐Shaped engineering competency model in collaborative organizational settings: Problem and status in the Spanish aircraft industry," Systems Engineering, John Wiley & Sons, vol. 21(6), pages 534-554, November.
    12. Jean-Marc Trouille, 2014. "Industrial Nationalism versus European Partnerships: An Analysis of State-Led Franco—German Interfirm Linkages," Environment and Planning C, , vol. 32(6), pages 1059-1082, December.
    13. Chia Sun, 2014. "A conceptual framework for R&D strategic alliance assessment for Taiwan’s biotechnology industry," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(1), pages 259-279, January.
    14. Liviu WARTER & Iulian WARTER, 2017. "The Phenomenon of Merger and Acquisition within the Automotive Industry," North Economic Review, Technical University of Cluj Napoca, Department of Economics and Physics, vol. 1(1), pages 208-215, October.
    15. Bhabani Shankar Nayak & Dominik Scheib, 2020. "Cultural logic of German foreign direct investment (FDI) in service sector," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-13, December.

    More about this item

    Keywords

    mergers and acquisitions (M&As); intercultural; cultural differences; automotive industry;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:clj:noecrw:v:1:y:2017:i:1:p:264-272. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Izabela Luiza Pop (email available below). General contact details of provider: https://edirc.repec.org/data/deubmro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.