How do each dimension of Hofstede’s national culture separately influence M&A success in cross-border M&As?

Abstract

Many existing studies have used the composite culture index to examine how the national cultural differences influence Mergers and acquisitions (M&As) success rather than to examine how each of national cultural dimensions separately influences the success of M&As. This study presented a research model to examine how each of Hofstede’s four dimensions − PDI (power distance index) differences, IDV (individualism vs. collectivism index) differences, UAI (uncertainty avoidance index) differences and MAS (masculinity vs. femininity index) differences − separately influence M&A success in cross-border M&As. The study includes three main dimensions of M&A success, namely integration success, synergy success and profitability success. The results show that PDI differences and MAS differences influence M&A success, while IDV differences and UAI differences have no influence. The study also reveals that high MAS differences lead to integration success and synergy success. However, high PDI differences lead to a mixed effect. When the high PDI differences lead to synergy success, it negatively influences the profitability of M&As.

Keywords:

• Cross-border M&As
• integration
• national cultural differences
• performances
• synergy

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Ziva Rozen-Bakher

Dr. Ziva Rozen-Bakher is a researcher in International Business. She has a Ph.D. in Public Policy and Management, and an M.A. in International Relations and Strategy. She has held academic positions in higher education in Israel, as well as executive management positions in leading high-tech multinational enterprises (MNEs) in Israel. She has published her research papers in international business, management and strategy journals.