Optimising Intercultural Synergies: A Dynamic Model of Value Creation in Post Merger Integration Contexts

Student thesis: Doctoral Thesis

Abstract

The research study presents a dynamic model to manage intercultural issues in post-merger integration (PMI) contexts. Employing the concept of fault-lines and fault-zones the model contributes to extant knowledge as it enables real value creation for mid-market companies such as EA by resolving PMI problems through practical solutions in real time. Cross-border mergers and acquisitions (M&As) activity across the world continues to occur unabated. Yet such deals post-merger face high failure rates. The main reason for failure cited in extant literature is cultural - both national and organisational. However, the literature is remarkably silent on the nature and attributes of cultural issues that have the power to create value or destroy such deals. The purpose of this study is to provide a dynamic model for leadership to optimise and manage intercultural issues during post-merger integration, combined with theoretical underpinnings and research rigour. Following a review of relevant literature, a case study approach was used which employed quantitative and qualitative data collection and analyses. Findings revealed that: (a) clash and fuse in PMI contexts need to be managed across specific intercultural and non-intercultural fault-zones (b) intercultural management is a specialism with specific skillset and competences that ought to form an integral part of the due diligence exercise prior to the signing of M&As and carried through to the PMI stage (c) experiential learning is critical to the deployment of intercultural competences related to dynamic capabilities during internationalisation.
Date of Award2019
LanguageEnglish

Cite this

Optimising Intercultural Synergies: A Dynamic Model of Value Creation in Post Merger Integration Contexts
Sastry, S. (Author). 2019

Student thesis: Doctoral Thesis