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The link between cultural due diligence and socio-cultural post-merger integration management as a critical success factor in M&As

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  • Dörrenbächer, Christoph
  • Witzmann, Natalie

Abstract

With the unchanging high failure rate of M&As, recent research is putting an increasing emphasis on Cultural Due Diligence (CDD) and socio-cultural Post-Merger Integration (PMI) Management. Nevertheless, the state of the art on CDD is still rare, leading to the fact that its actual value for a successful PMI remains unclear. Addressing this gap is the basic objective of this paper. In more detail the paper tries to clarify whether CDD is a necessary prerequisite for a successful PMI. The paper finds that the CDD process creates considerable value for the subsequent PMI as it facilitates a fast and smooth cultural integration and as such accelerates the operative integration of M&As.

Suggested Citation

  • Dörrenbächer, Christoph & Witzmann, Natalie, 2015. "The link between cultural due diligence and socio-cultural post-merger integration management as a critical success factor in M&As," Working Papers 84, Berlin School of Economics and Law, Institute of Management Berlin (IMB).
    • Handle: RePEc:zbw:imbwps:84
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    References listed on IDEAS

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    1. Quah, Penelope & Young, Stephen, 2005. "Post-acquisition Management:: A Phases Approach for Cross-border M&As," European Management Journal, Elsevier, vol. 23(1), pages 65-75, February.
    2. Julian Birkinshaw & Henrik Bresman & Lars Håkanson, 2000. "Managing the Post‐acquisition Integration Process: How the Human Iintegration and Task Integration Processes Interact to Foster Value Creation," Journal of Management Studies, Wiley Blackwell, vol. 37(3), pages 395-425, May.
    3. repec:bla:jomstd:v:37:y:2000:i::p:395-425 is not listed on IDEAS
    4. Yaakov Weber & Shlomo Y. Tarba & Arie Reichel, 2011. "A Model of the Influence of Culture on Integration Approaches and International Mergers and Acquisitions Performance," International Studies of Management & Organization, Taylor & Francis Journals, vol. 41(3), pages 9-24, January.
    5. Günter K. Stahl & Chei Hwee Chua & Amy L. Pablo, 2012. "Does National Context Affect Target Firm Employees’ Trust in Acquisitions?," Management International Review, Springer, vol. 52(3), pages 395-423, June.
    6. Günter K. Stahl & Andreas Voigt, 2008. "Do Cultural Differences Matter in Mergers and Acquisitions? A Tentative Model and Examination," Organization Science, INFORMS, vol. 19(1), pages 160-176, February.
    7. Angwin, Duncan, 2004. "Speed in M&A Integration:: The First 100 Days," European Management Journal, Elsevier, vol. 22(4), pages 418-430, August.
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    Cited by:

    1. Warmdt, Luca & Užik, Martin & Löcher, Markus, 2018. "Financial signaling with open market share repurchases and private redemptions," Working Papers 93, Berlin School of Economics and Law, Institute of Management Berlin (IMB).

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