Integration or disintegration? Human resource implications of a common corporate language decision in a cross-border merger

Abstract

The primary purpose of introducing a common corporate language in cross-border mergers is to integrate two previously separate organizations and facilitate communication. However, the present case study of a cross-border merger between two Nordic banks shows that the common corporate language decision may have disintegrating effects, particularly at organizational levels below top management. We identify such effects on performance appraisal, language training and management development, career paths, promotion and key personnel. Our findings show that top management needs to work through the consequences of the language decision upon those who are expected to make such a decision work.

Keywords:

• Mergers and acquisitions
• post-merger integration
• language

Acknowledgement

We would like to acknowledge Denice Welch's helpful comments on an earlier version of this paper.

Notes

1  The company was renamed Nordea in 2000.

2  While the term ‘glass ceiling’ has typically been used to denote social barriers that women face when aspiring to reach top management positions in companies, our evidence indicates that lack of language skills may have a similar, segregating effect.