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					  IMBA
 CULTURAL
DIMENSIONS
      Goals for Merger and Acquisition
                 Integration
                                             Need for Strategic
                                             Interdependence

                                    Low                                 High



           High
                        Preservation                            Symbiosis
Need for
Organizational
Autonomy


           Low              (Holding)                           Absorption


                  Source: Haspeslagh, P. C., Jemison, D. B. 1991. Managing Acquisitions. P. 145
Capital raised in London in the Eurodollar market by
 a Belgium-based corporation may finance the acquisition
 of machinery by a subsidiary located in Australia. A management
 team from French Renault may take over an American-built
automotive complex in the Argentine. Clothing for dolls, sewn in
Korea on Japanese-supplied sewing machines according to U.S.
specifications, may be shipped to Northern Mexico for assembly
with
other components into dolls being manufactured by a U.S. firm
for sale in New York and London during the Christmas season.
A California-manufactured (plane)…is powered by British…engines,
while a competing (aircraft)…flies on Canadian wing assemblies. A
Frenchman is appointed president of (a) U.S.
domiciled…corporation
while an American establishes…a Swiss-based international mutual
fund.


    “The complexities of business and associated cultures”
         CULTURE


CULTURE IS THE CHARACTERISTIC
WAY OF BEHAVING AND BELIEVING
  THAT A GROUP OF PEOPLE IN A
 COUNTRY OR REGION (OR FIRM)
 HAVE EVOLVED OVER TIME AND
            SHARE
 Cultural Sensitivity


… may be defined as a state of
heightened awareness for the
values and frames of reference
of the host culture.
    DIMENSIONS OF CULTURE
   INDIVIDUAL
   COUNTRY/HERTIAGE/REGION
   COMPANY/FIRM
LAYERS OF CULTURE



    SURFACE CULTURE


     HIDDEN CULTURE




      INVISIBLE
       CULTURE
 DEVELOPMENT OF
 CROSS-CULTURAL                 RECONCILITATION
 COMPETENCES                    RESOLVE DIFFERENCES
                                INTEGRATION
                                ADAPTION



                  RESPECT
                  APPRECIATE
                  CULTURAL
                  DIFFERENCES




AWARENESS INCREASED
AWARENESS OF ONE’S OWN
CULTURAL PERSPECTIVE
    KEY RESEARCH ON COUNTRY
           DIMENSIONS
   HOFSTEDE – 53
    COUNTRIES,IBM,4      http://www.geert-
    DIMENSIONS           hofstede.com/


   FONS TOMPENAARS –
    50 COUNTRIES, 5
    DIMENSIONS

   GLOBE (GLOBE
    LEADERSHIP AND
    ORGANIZATIONAL
    BEHAVIOR
    EFFECTIVENESS) – 9
    DIMENSIONS
                         Clusters
   Near Eastern. Greece, Iran, Turkey
   Nordic. Denmark, Finland, Norway, Sweden
   Independent. Brazil, Japan, India, Israel, South Korea
   Anglo. Australia, Canada, Ireland, New Zealand, South
    Africa, United Kingdom, US
   Arab. AbuDhabi, Bahrain, Kuwait, Oman,Saudi Arabia
    United Arab Emirates
   Far Eastern. Hong Kong, China, Indonesia, Malaysia,
    Philippines, Singapore, South Vietnam, Taiwan, Thailand
   Germanic. Austria, Germany, Switzerland
   Latin America. Argentina, Chile, Columbia, Mexico, Peru,
    Venezuela
   Latin European. Belgium, France, Italy, Portugal, Spain
        Generalized national cultural
              characteristics
   Time/relationship – attitudes towards time
    and time sensitivity, relationships,
    behaviors, communication, and language
   Power cluster – hierarchy, status
    attainment, physical space, importance of
    work
   Social Interdependence – group
    independence, diversity, receptivity,
    change tolerance
   Social Interaction – degree of formality,
    dress and appearance, food and eating
    habits, greetings, gift giving, physical
    touching
        RESEARCH ISSUES
   GENERAL FRUSTRATIONS
    • LONGITUDINAL ISSUES
    • INCONSISTENCIES WITH COMPANIES
    • CULTURAL IDENTIFYING
      CHARACTERISTICS
   EMPLOYEES SURVEYS
   FOCUS OF RESEARCH (ETIC
    (CULTURE COMMON PROBLEMS VS
    EMIC CULTURE SPECIFIC ASPECTS)

				
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