M & A and innovation :The role of integration and cultural differences — A central European targets perspective

Bauer, Florian and Matzler, Kurt and Wolf, Stefan (2016) M & A and innovation :The role of integration and cultural differences — A central European targets perspective. International Business Review, 25 (1 Part). pp. 76-86. ISSN 0969-5931

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Abstract

Cultural differences are an important issue for cross-border M&A. Empirical evidence for the impact of cultural differences on M&A performance is mixed. A major reason for these inconclusive results relies on integration. One main motive for cross-border transactions is the acquisition of innovative capabilities. In a study of innovation-driven M&A in the German-speaking part of Europe, we find different effects of human and task integration on the innovation outcome after the transaction. While human integration (i.e., the creation of a shared identity and satisfaction among the employees from both organizations) is rather destructive, task integration (i.e., the transfer and sharing of resources and capabilities) is beneficial for innovation output. Furthermore, the integration-innovation performance relationship is moderated by national cultural differences. While national cultural differences have a downward curvilinear slope moderating the effect of human integration to innovation, we find a clear inverted U-shaped slope moderating the effect for task integration. Both effects indicate that cultural similarity is more beneficial in the case of innovation-driven M&A with targets in Central Europe.

Item Type: Journal Article
Journal or Publication Title: International Business Review
Uncontrolled Keywords: /dk/atira/pure/subjectarea/asjc/1400/1406
Subjects:
ID Code: 125380
Deposited By: ep_importer_pure
Deposited On: 22 May 2018 12:56
Refereed?: Yes
Published?: Published
Last Modified: 19 Feb 2020 04:36
URI: https://eprints.lancs.ac.uk/id/eprint/125380

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