The Impact of Post-acquisition Integration and National Culture in M&A - A Case Study of Chinese Acquisitions in Sweden

Abstract: During the last years, the number of Chinese acquisitions of European companies has increased. The aim of this paper is to research whether organizational and managerial differences can be identified in acquisitions in this new context, and to what extent these can be explained by post-acquisition integration theory and national culture theory. Using a qualitative case study research design on three of the first Chinese acquisitions on the Swedish market, we identify four organizational and managerial differences: approach to control, hierarchy, personal relationships and long- versus short-term orientation. The results indicate that neither post-acquisition integration theory nor national culture theory, nor both, can explain all aspects of the identified organizational and managerial differences. However, it is concluded that national culture can explain the approach to hierarchy and long- versus short-term orientation, while the level of post-acquisition integration and acquisition motive seems to accentuate these differences. Moreover, post-acquisition integration theory can explain the difference in approach to control, while both theories offer partial explanations of the difference in approach to personal relationships.