Corporate acculturation neglect in cross-border acquisitions: the case of Denmark and the United States

ABSTRACT

This study examines the impact of national culture on employee perceptions of internal communication during at Danish–American corporate cross-border acquisition. Twenty interviews were collected comprised of employees, managers, and chief executive officer whose organisations were directly involved in a cross-border acquisition. A modified constant comparative analysis of the data revealed that the three following identifiers were prominent as invaders to a successful Danish–American cultural integration: awareness of hierarchical communication differences; communication as misdirection; and reflection on consequences. The ways in which the acquisitions were mishandled led to the identification of a process we have labelled corporate acculturation neglect (CAN). CAN in acquisitions occurs when the acquired party feels that their familiar corporate culture has been neglected in favour of the communicative preferences of the acquiring company, resulting in feelings of frustration, uncertainty, and mistrust. This study concludes with recommendations for avoiding problems associated with CAN in cross-border acquisitions.

KEYWORDS:

• Intercultural communication
• organisational communication
• acquisitions
• culture
• Danish/American

Notes on contributors

Tina Breiner, MA, is interested in the cross section between inter-cultural and organizational communication. She studies international and intercultural communication.

Elizabeth M. Minei, Ph.D., is interested in the ways in which interpersonal dynamics influence organizational outcomes. She studies small groups, leadership messaging, and inter-cultural business exchanges.