Culture clashes in cross-border mergers and acquisitions: A case study of Sweden's Volvo and South Korea's Samsung

Sung-Jun Lee, Joongwha Kim and Byung Il Park

International Business Review, 2015, vol. 24, issue 4, 580-593

Abstract: This study investigates the way in which employees from acquiring and acquired firms experience cultural differences during post-acquisition integration. We examined Volvo Construction Equipment's acquisition of Samsung Heavy Industry's division of construction equipment. Two ontologically bipolar conceptualizations of culture – the classic and social constructivist concept of culture – are discussed. Semi-structured interviews were conducted at Volvo Construction Equipment Korea twice over an 11-year interval, in 2001 and 2012, respectively. The results suggest that while the classic concept of culture correctly predicts what kinds of culture-dependent problems may occur during post-acquisition integration, the social constructivist concept of culture can better predict whether or not these problems may occur.

Keywords: Cross-border mergers and acquisitions; Cultural differences; Post-acquisition integration (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (14)

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DOI: 10.1016/j.ibusrev.2014.10.016

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