Proceedings of the 31st International Academic Conference, London

THE INFLUENCE OF CULTURE DIFFERENCE ON DECISION MAKING PROCESS TO CHOOSE INTEGRATION MODES AFTER CHINA PURCHASED GERMANY FAMILY ENTERPRISES

YANAN YANG, CHRISTOPH LÜTGE

Abstract:

This paper presents a novel method for identifying the suitable mode selection of culture integration for Chinese enterprises, during the oversea mergers and acquisitions with Germany family enterprises. Using questionnaire and case study, the national and organizational culture would be measured for the comparison of Chinese and German family enterprises, and the influence factors of culture difference and suitable culture integration modes would be teased out. Based on Berry’s Acculturation theory, this paper would propose that if the national and organizational cultures were both distant, then the marginalization would be positive; if they were both close, then the assimilation would be positive; if their national culture were close while organizational culture were distant, then the separation would be positive; lastly, if their national culture were distant while organizational culture were close, then the integration would be positive. After the questionnaire research (130 open & close questionnaires to Chinese enterprises and 20 to Germany), 86 % valid questionnaires were recovered. The result shows agreement with theoretical prediction. Three case studies would be conducted accordingly. The work presented here has profound implications for future studies of Berry’s Acculturation theory. It is hope to help solve the problem of the culture integration in mergers and acquisitions among China and Western Countries in the future and significantly improve over previous efforts by Moran, et al.

Keywords: Culture Difference; Culture Integration Modes; Decision Making Process; Chinese and German Family Enterprises;

DOI: 10.20472/IAC.2017.031.059

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