ESCP Europe

Item type

Study and report

Dissertation

• MIM Master in Management Grande Ecole

Language

English

Publication date

2011

Subjects

MERGER AND ACQUISITION - INTERCULTURAL MANAGEMENT - STRATEGY

This research paper takes a critical standpoint toward earlier studies that view cultural diversity merely as a threat rather than an opportunity, and addresses how the integration of two parties in a cross-border merger - a crucial phase that can strongly affect the future financial performance of the newly formed entity - is influenced by cultural workforce diversity. Cultural diversity has always been considered a determinant of conflict that hampers communication and herewith integration success in M&As. Compared to the abundance of research that analyzes inter-firm cultural diversity, this study differentiates itself by addressing the rather undiscovered topic of intra-firm cultural diversity, and identifies it as a potentially valuable asset in cross-border M&A deals as it positively contributes to the elimination of stereotyping and a We versus They attitude.