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Managing Mergers Across Borders: A Two-Nation Exploration of a Nationally Bound Administrative Heritage

Author

Listed:
  • Michael Lubatkin

    (University of Connecticut, Box U41M, 368 Fairfield Road, Storrs, Connecticut 06269-2041, and Groupe EM Lyon, 69132 Ecully Cedex, France)

  • Roland Calori

    (Groupe EM Lyon, 69132 Ecully Cedex, France)

  • Philippe Very

    (Groupe EM Lyon, 69132 Ecully Cedex, France)

  • John F. Veiga

    (University of Connecticut, Box U41M, 368 Fairfield Road, Storrs, Connecticut 06269-2041)

Abstract

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.

Suggested Citation

  • Michael Lubatkin & Roland Calori & Philippe Very & John F. Veiga, 1998. "Managing Mergers Across Borders: A Two-Nation Exploration of a Nationally Bound Administrative Heritage," Organization Science, INFORMS, vol. 9(6), pages 670-684, December.
  • Handle: RePEc:inm:ororsc:v:9:y:1998:i:6:p:670-684
    DOI: 10.1287/orsc.9.6.670
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    References listed on IDEAS

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    1. Roland Calori & Michael Lubatkin & Philippe Very & John F. Veiga, 1997. "Modelling the Origins of Nationally-Bound Administrative Heritages: A Historical Institutional Analysis of French and British Firms," Organization Science, INFORMS, vol. 8(6), pages 681-696, December.
    2. Ikujiro Nonaka, 1994. "A Dynamic Theory of Organizational Knowledge Creation," Organization Science, INFORMS, vol. 5(1), pages 14-37, February.
    3. Ravenscraft, David J, 1983. "Structure-Profit Relationships at the Line of Business and Industry Level," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 22-31, February.
    4. Philippe Very & Michael Lubatkin & Roland Calori & John Veiga, 1997. "Relative standing and the performance of recently acquired European firms," Strategic Management Journal, Wiley Blackwell, vol. 18(8), pages 593-614, September.
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