Marriages between Asian, American, and Dutch Corporations: A Matter of Cultural Fit?

Frits D. J. Grotenhuis
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Frits D. J. Grotenhuis: Faculty of Management & Organization, University of Groningen, The Netherlands

Review of Pacific Basin Financial Markets and Policies (RPBFMP), 2001, vol. 04, issue 02, 203-220

Abstract: In this paper two studies about the impact of cultural differences on corporate marriages are discussed. Very often it is hypothesized that culture has a large impact on joint ventures and mergers, however, few studies come up with empirical evidence. To explore such culture's consequences two studies were conducted, where different research approaches were used. In the first study into Japanese and American joint ventures in Indonesia, an etic research approach was chosen. Leadership styles and stress were examined in particular, as effects of differences in national cultures. On most of the concepts we measured, Japanese managers seem to fit better in an Indonesian context than American managers do. In the second study into Japanese-Dutch and American-Dutch mergers, an emic research approach is used. Two American-Dutch mergers and one Japanese-Dutch merger are currently the subject of research. The focus of the second study is on the acculturation process of the two merging entities. Based on the preliminary results and an extensive literature review, it is concluded that Japanese-Dutch companies are more difficult to combine than American-Dutch companies, although culture clashes also occur in American-Dutch combinations.

Keywords: Business relations; Mergers; Joint ventures; Cultural fit (search for similar items in EconPapers)
JEL-codes: G1 G2 G3 (search for similar items in EconPapers)
Date: 2001
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DOI: 10.1142/S0219091501000383

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