Cultural And Human Resources Integration Of Chinese Enterprises' Cross-Border Mergers And Acquisitions

In recent years, along with the development of China's reform and opening up, many Chinese corporations participate in the cross-border mergers and acquisitions (M&A). More and more corporations hope to take the opportunity of cross-border M&A to enlarge the scale of business and further accelerate the development of the enterprises. However, most of the enterprises cannot realize the goals set before M&A. These enterprises encounter many challenges and difficulties in the process of M&A and integration. In fact, the greatest barriers of the cross-border M&A lie in the aspects of culture and human beings. To some extent, cultural and human resources integration are more important than integration of technology and business operation. How to carry out an effective cultural and human resources integration is very significant in a successful cross-border M&A.This paper gives a brief introduction to the literature review of the M&A theories, and analyzes different theories of cultural dimensions, cultural integration and human resources integration. TCL's merger with Thomson & Alcatel and Lenovo's acquisition of IBM's PC division are analyzed according to the above-mentioned theories. The purpose of case study is to clarify the great impact of cultural and human resources integration on Chinese enterprises' cross-border M&A. These corporations should implement appropriate cultural and human resources strategies on the basis of pre-integration cultural analysis. In the end, the paper provides some recommendations about how to carry out the cultural integration and manage the human resources integration in cross-border M&A.