Cultural differences, cultural convergence and crossvergence as explanations of knowledge transfer in international acquisitions

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Dr.. Riikka M. Sarala, Professor of International Business (Creator)
The University of North Carolina at Greensboro (UNCG )
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Abstract: In spite of the proliferation of research on cultural differences in international mergers and acquisitions, we lack systematic analyses of the impact of cultural factors on knowledge transfer. In this paper, we argue that both national and organizational cultural differences and cultural integration in the form of cultural convergence and crossvergence affect knowledge transfer in acquisitions. We develop specific hypotheses concerning the nature of these effects, and test our hypotheses with data on international acquisitions carried out by Finnish corporations. The analyses performed show that national cultural differences provide great potential for knowledge transfer in international acquisitions. Furthermore, organizational cultural convergence and crossvergence have a significant positive impact on knowledge transfer. In particular, convergence and crossvergence moderate the impact of national cultural differences on knowledge transfer.

Additional Information

Journal of International Business Studies, 41(8): 1365-1390
Language: English
Date: 2010
International acquisitions, GLOBE, Culture

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