Why do cross-border M&A fail so often? The role of cultural differences in the case study of the DaimlerChrysler AG

An exploration of cross-border M&A activities in the automotive industry

Masterarbeit , 2008 , 82 Seiten , Note: 71 % - A

BWL - Allgemeines

There is a high failure rate in cross-border M&A. Many of them fail due to cultural differences of the combining organisations. This study examines the role of culture in cross-border M&A regarding national and organisational culture among other factors that are important for a successful integration strategy in M&A across borders. The factors discussed are based on empirical findings, and on literature that in the analysis, proved to corroborate the findings of the primary data, or insights based on these findings.

Since many authors comply with DaimlerChrysler having failed because of two heterogeneously organisational cultures and different management styles trying to combine into a new culture, this topic was of special interest of the researcher. DaimlerChrysler is being used as a case study approach in this research to find out how important the role of culture in cross-border M&A is. Furthermore, it has been observed, that the controversial evidence in the literature if many cross-border M&A fail due to cultural differences is of interest concerning the research objectives and the literature revealed that in this area little research is done so far.

Therefore, one objective of this research is to fill the gap in the literature regarding national and organisational culture when integrating one firm with another or by forming an entirely new one in cross-border M&A The analysis of primary data in form of semi-structured interviews has uncovered that the cause of the cultural differences is not always apparent and ignored particularly in business. However, cultural differences are not the only cause for cross-border M&A failure as there are other important factors to take into account.

Inhaltsverzeichnis (Table of Contents)

• Introduction
  • Nature and scope of the study
  • The chronicles of the DaimlerChrysler AG
  • Research question and objectives
  • Research overview
• Literature Review
  • The generic rational for a deliberate mergers and acquisitions strategy
    • The history of mergers and acquisitions waves
    • Reasons for mergers and acquisitions
    • Sustainability and competitive advantage
    • Gain human assets
    • Core competence
    • Capability creating
  • Post-merger problems in cross-border mergers and acquisitions
    • Integration approaches
    • Cultural differences
  • Choice of right partner for a successful mergers and acquisitions process
• Methodology
  • Research philosophy
  • Research approach
  • Research strategy
  • Research choice and data collection methods
  • Analysis of qualitative data
  • Ethical issues
  • Limitations
• Key Findings & Data Analysis
  • Analysis of interviews associated with key factors from literature
• Conclusion and recommendations
  • Limitations

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This research aims to explore the effects of cross-border mergers and acquisitions (M&A) and to determine whether cultural differences between merging companies contribute to the high failure rate. The study specifically focuses on the DaimlerChrysler AG merger as a case study approach.

• Strategic implications of pursuing cross-border M&A, including capability creating, gaining human assets, achieving competitive advantage and sustainability, and developing core competences.
• Post-merger challenges, such as cultural differences, synergy seeking, and integration approaches to ensure a successful M&A process.
• The importance of choosing the right partner for a successful M&A process.
• The analysis of the DaimlerChrysler AG merger to understand the factors contributing to its failure.
• The investigation of the extent to which the findings can be generalized to other cross-border M&A cases.

Zusammenfassung der Kapitel (Chapter Summaries)

The introduction provides a comprehensive overview of the term M&A, focusing on the DaimlerChrysler AG merger as a case study. It outlines the research question, objectives, and the overall structure of the research paper.

The literature review section delves into the generic rational for a deliberate mergers and acquisitions strategy, covering the history of mergers and acquisitions waves, reasons for mergers and acquisitions, sustainability and competitive advantage, and the importance of gaining human assets, core competence, and capability creating. It also examines the post-merger problems encountered in cross-border mergers and acquisitions, highlighting the importance of integration approaches and addressing cultural differences.

The methodology chapter discusses the research philosophy, approach, strategy, data collection methods, and analysis of qualitative data. It also addresses ethical issues and limitations of the study.

The Key Findings & Data Analysis section presents the findings of the research, focusing on the analysis of interviews associated with key factors from the literature.

Schlüsselwörter (Keywords)

The research focuses on cross-border mergers and acquisitions, cultural differences, integration, synergy seeking, strategic implications, post-merger problems, case study approach, DaimlerChrysler AG, and the impact of cultural differences on M&A success.

• Hochschule: University of Newcastle
• Note: 71 % - A
• Autor: Miriam Mennen (Autor:in)
• Erscheinungsjahr: 2008
• Seiten: 82
• Katalognummer: V145624
• ISBN (eBook): 9783668683563
• ISBN (Buch): 9783668683570
• Sprache: Englisch
• Schlagworte: Cross border, Daimler Chrysler AG, mergers and acquisitions, organisational culture, automobile industry, Five Forces Model, human assets, SWOT, Capability creating, Mercedes-Benz, Post-merger problems, Cultural differences, Hofstede, Choice of right partner