Although it affords them international experience, it also deprives them of the facetoface networking opportunities at headquarters that are so. English in south africa a doubleedged sword 6 english in south africa a doubleedged sword 6 louis barnard. The doubleedged sword of cultural distance in international acquisitions, journal of international business studies, palgrave macmillan. Essay on globalization a two edged sword 815 words bartleby. The doubleedged sword of cultural distance in developing combinative capability of international acquisitions. What remains to be seen is how activists across the americas can meet this doubleedged structural challenge. Enhancing team motivation but undermining the use of team knowledge 11th, october, 2012 introduction organizations can accomplish complex goals if they employ the aspect of working as a team. Journal of international business studies, volume 40, issue 8. As we wrap up 2011 i am in a reflective mood and thought i would take a minute to contemplate that double edged sword. Instruction limits spontaneous exploration and discovery elizabeth bonawitza. Globalization a doubleedged sword by virtually every measure growth in international trade, foreign direct investment or crossborder flows of technology globalization is becoming increasingly pervasive. Trefry sacred heart university the primary premise explored in this paper is that organizational culture has the potential for even greater impact in multicultural organizations than monocultural ones because. Jul 14, 2016 foreignbased top managers time away from the central corridors of power seems to act as a doubleedged sword.
Aib 2005 quebec, 912 july 2005 manuscript id numbers. Meyerthe impact of institutional and human resource distance on international. Cultural differences and shareholder value in related. Perspectives and past findings on the link between ethnocultural diversity and innovation have been divided.
English in south africa a doubleedged sword 6 teaching. Doubleedged sword of cultural distance in international acquisitions. The doubleedged sword of cultural distance in international acquisitions created date. Aib 2005 quebec, 912 july 2005 manuscript id numbers session. The authors reason that contradictory past findings could have resulted from a lack of conceptual dissociation between two sources of ethno cultural diversity. This study aims to bring together seemingly contradicting arguments in the literature about the role of cultural distance in international acquisitions. Organizational culture in multicultural organizations mary g.
Our findings suggest that cultural distance is a doubleedged sword with costs and benefits. Cultural enviornment and international business semantic. Globalization a doubleedged sword china india institute. Lamont is the jim moran eminent scholar in business administration in the college of business at florida state university and the director of research at the jim moran institute for global entrepreneurship. Our findings suggest that cultural distance is a double edged sword with costs and benefits. The authors reason that contradictory past findings could have resulted from a lack of conceptual dissociation between two sources of ethnocultural diversity. C o 2016 the international association for chinese management research. Although it affords them international experience, it also deprives them of the facetoface networking opportunities at headquarters that are so crucial to career advancement, the study suggests.
We develop an institutional framework showing that informal and formal institutions not only have important individual effects but also work together in complex and interesting ways. The doubleedged sword of cultural distance in international acquisitions, journal of international business studies, 40. Growth of gdp the economic scenario in india is stable over the years even after the great depression in 2008. Evidence from professional financial services across cultures abstract emergent perspectives in marketing highlight new opportunities for coopting customers as a means to define and cocreate value through their. Goodmand, elizabeth spelkee, laura schulzc a department of psychology, university of california, berkeley, ca 94720, usa bdepartment of psychological and brain sciences, university of louisville, louisville, ky 40292, usa. Globalization wields double edged sword by mahathir mohamad prime minister of malaysia it was the first time that such meetings have focused on the financial system, and its prominence this time was because developing nations have real problems with it. The doubleedged sword of cultural distance is epitomized in integration. Consequently, these results support the idea of complex interactions between institutions and firm strategies across different institutional pillars, and advance our knowledge on these issues by proposing and testing the double edged sword effect of institutional distance on partner selection for alliances. This policy was put in place in india during the sinoindian. On the other hand, we find that cultural distance enriches acquisitions by enhancing the positive effects of understandability and communication on acquisition performance.
Mohammad faisal ahammad, shlomo yedidia tarba, yipeng liu and keith w. During the rare trips outside new delhi with my family as a child, my indiaborn chinese mother had to report her whereabouts to the local police station after arrival and before departure until she acquired an indian passport. It can be a doubleedged sword for a country to a certain extent due to its advantages as well as its disadvantages. The double edged sword of cultural distance in international acquisitions. On the other hand, we find that cultural distance enriches acquisitions by enhancing the positive effects of understandability and communication on acquisition. The antipodal effects of institutional distance on partner selection in crossborder alliances. Contextual distance and the international strategic. Among the g15 nations, malaysia, indonesia and brazil have faced problems caused. Entrepreneurship, rotterdam school of management, erasmus university rsm.
Is customer participation in value creation a double edged. Taco h reus and bruce t lamont, the doubleedged sword of cultural distance in international acquisitions, journal of international business studies, 40, 8, 1298, 2009. In spite of a multitude of prior empirical investigations on factors explaining variance in company performance after a takeover each single study has typically incorporated only a narrow range of postacquisition integration pai design subfields. As we wrap up 2011 i am in a reflective mood and thought i would take a minute to contemplate that doubleedged sword. A team is a small group of individuals each with some complementary skills and work towards to accomplishing. His research examines how firms are influenced by the environment in which they strategize, operate and expand, and how organizational capabilities and experience help or hurt firms in this environment. I remember her telling us how humiliated she felt at having to do so, to be treated like a criminal. A conceptual framework and a partial metaanalytic test volume 11 issue 2 jiatao j.
The doubleedged sword of cultural distance in international acquisitions publication journal of international business studies, volume 40 issue 8 p. By virtually every measure growth in international trade, foreign direct investment or crossborder flows of technology globalization is becoming increasingly pervasive. Home country institutions behind crossborder acquisition. Chinas crossborder mergers and acquisitions hkust business. The doubleedged sword of cultural distance in international.
We examine in particular i which types of cultures are more likely to carry out acquisitions in a different culture to their home society and ii which are more likely to complete deals. Glaister, knowledge transfer and crossborder acquisition performance. In spite of a multitude of prior empirical investigations on factors explaining variance in company performance after a takeover each single study has typically incorporated only a narrow range of. Growth of gdpthe economic scenario in india is stable over the years even after the great depression in 2008. A darker side of knowledge transfer following international acquisitions. A contextual distance perspective volume 12 issue 3 jiatao li, guoguang wan. Available formats pdf please select a format to send. About the author alison brysk is associate professor of political science and chair of international studies at university of california, irvine. Pdf the doubleedged sword of cultural distance in international. Essay on globalization a two edged sword 815 words.
Contextual distance and the international strategic alliance performance. Effects of executive departures on the performance of. What remains to be seen is how activists across the americas can meet this double edged structural challenge. Africa is reliant on the countrys multilingual and multicultural context, it is imperative to position language as a. How do home country institutions influence crossborder postacquisition performance. Is customer participation in value creation a doubleedged sword.
The doubleedged sword of cultural distance in international acquisitions taco h reus1 and bruce t lamont2 1rotterdam school of management, erasmus university, rotterdam, the netherlands. The doubleedged sword of cultural distance in international acquisitions. His research has been published in such outlets as the academy of management journal. Firstly, tourism is beneficial as it contributes to a countrys revenue. The advantages are economic, cultural and environmental benefits while the disadvantage will be environmental degradation. Contextual distance may act a doubleedged sword in determining. How perceived cultural distance influences trust and task discourse to drive new product development performance robin pesch strategic management and organization, university of bayreuth, bayreuth, germany. The doubleedged sword of cultural distance in international alliances. The moderating effects of control on firm capabilities and institutional distance in explaining foreign affiliate performance. How sizespecific experience matters, academy of management journal, 54.
Foreignbased top managers time away from the central corridors of power seems to act as a doubleedged sword. Acquirers that can overcome the impeding effects of cultural distance on understanding key capabilities and effective communication appear to reap significant performance gains. On the one hand our diversity is what makes us exciting, beautiful, complex, wondrous and never boring. Bruce lamont jim moran institute for global entrepreneurship. For the past thirty years, crossborder mergers and acquisitions have become a. Our study provides initial support for a doubleedged sword effect of cultural differences on acquisition performance, and illustrates the importance of integration capabilities. Some of the implications positive as well as negative are. Many of the barriers that kept the industries and economies of different countries relatively isolated from one another are either.
Essay on globalization a two edged sword 815 words 4 pages in all aspects of the universe there are opposite forces that work against each other for good and for bad. Saunders, levent altinay and katharine riordan, the management of postmerger cultural integration. Is customer participation in value creation a double edged sword. Contextual distance and the international strategic alliance. Cultural distance and firm internationalization sage journals.
By conceptually and empirically teasing apart these two. Trefry sacred heart university the primary premise explored in this paper is that organizational culture has the potential for even greater impact in multicultural organizations than mono cultural ones because. We then examine novel constructs for characterizing cultures, and how to enhance the precision of cultural. Our study provides initial support for a doubleedged sword effect of cultural differences on acquisition performance. But what strikes me is the acknowledgement that the value of a ridiculous status symbol pales in comparison to the economic conditions that make such code switching possibleand for many people, vital for survival. Article information, pdf download for home country institutions. The how and the impacts of going international lorraine eden pages 12391240 download pdf 54kb view article. Transformational leadership and individual creativity silke astrid eisenbei. The doubleedged sword of cultural distance in international acquisitions 14 may 2009 journal of international business studies, vol. In conclusion, although several issues warrant further investigation, the present study takes significant steps towards understanding the role of cultural distance in international acquisitions. We offer a model that postulates that cultural distance relates negatively to international acquisition. Presented at the association of international business conference in quebec city, canada.
Postacquisition integration management and takeover. We offer a model that postulates that cultural distance relates negatively to international acquisition performance because it taxes integration capabilities during international acquisitions, but that. College of international and area studies, hankuk university of. Religion is a doubleedged sword, both supporting and. Evidence from professional financial services across cultures abstract emergent perspectives in marketing highlight new opportunities for coopting customers as a means to define and cocreate value through their participation. Director of research, jim moran institute for global entrepreneurship. The doubleedged sword of cultural distance in international acquisitions pp. International relocation of investment bank research.
Jim moran eminent scholar of business administration. Globalization wields doubleedged sword by mahathir mohamad prime minister of malaysia it was the first time that such meetings have focused on the financial system, and its prominence this time was because developing nations have real problems with it. May 14, 2009 in conclusion, although several issues warrant further investigation, the present study takes significant steps towards understanding the role of cultural distance in international acquisitions. Do cultural differences matter in mergers and acquisitions. I recommend you follow the link and read the whole piece for yourselves. Perspectives and past findings on the link between ethno cultural diversity and innovation have been divided.
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