The Impact of Cultural Differences on Cross-Border Merger Processes

Revision with unchanged content. Nowadays due to the fierce global competition, cross-border mergers are a well-known strategic option for companies to become global players. Therefore internationally merging companies have to deal with the issue of cultural differences as both partners bring different national and corporate cultures into the new formed corporation. Geert Hofstede's and Fond Trompenaars' cultural studies provide the basis for a comparison of national and organisational cultural diversity between German and American people. These cultural differences have to be considered during the post-merger implementation process as only compatible organisational cultures lead to successful mergers. Employees are at a great extent responsible for a merger's success. The DaimlerChrysler merger created one of the biggest automobile manufacturers in the world and changed the face of the automobile industry. This merger represents the complexity of resulting merger failures if the cultural impact will be underestimated. Managers have to learn to create global organisations with shared values and purposes, while also take into account national differences of the organisation members. The DaimlerChrysler merger provides a reference case for any international merger in the future.