China: Chinese acquisition of a German multinational company
Xiuqi Ying,
Yiming Dai,
Xiaomeng Liu and
Abby Jingzi Zhou
Chapter 7 in Global Leadership Practices, 2024, pp 135-150 from Edward Elgar Publishing
Abstract:
This chapter explores the acquisition of German Linde Hydraulics by Chinese ‘Weichai Power’ in their strategy to become a prominent player in the global market. This case study illustrates the leadership challenges of managing cross-cultural cooperation and integration in a merger and acquisition (M&A) transaction between China and Germany. It highlights concerns on both sides of the deal, such as trust issues, cultural incompatibilities, technology leakage, and job security. These exemplify the multifaceted nature of international M&As, where strategic, financial, cultural, and ethical considerations converge. It employs multiple perspectives in cross-cultural management analysis, including positivist, interpretive, and critical perspectives, along with insights from Confucianism to explain Chinese leadership practices.
Keywords: Asian Studies; Business and Management; Economics and Finance (search for similar items in EconPapers)
Date: 2024
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