Cultural Integration Model Of Cross-Border Mergers And Acquisitions In Chinese Companies

In the decades since China's reform and opening up, "coming in" is the major form of internationalization in China, which, as a passive form of globalization in the sense of micro-economics, however, fails to fit the fast development of China's economy any more. The national economy pattern tends to combine "going out" with "coming in". Recently, many a Chinese giants are seeking to promote the globalization of manufacture and sales with great effort by overseas M&A. Cultural integration after an M&A plays a decisive role in post-merger performance and operation.Based on the theory of culture integration and cross-cultural management, this thesis discusses and analyzes the history and development of overseas merger & acquisition as well as how Chinese enterprises are engaged, with the conclusion that cultural integration plays a crucial role in overseas M&A.The theoretical analysis of the relationship between corporate culture and overseas M&A, and between cross-culture management and overseas M&A, reveals that the double-folded conflict evoked by national culture and corporate culture is the main reason for the success of an M&A. When it comes to the situation in China, two cases-success for one, failure for another-are discussed for the insight into cultural integration.With the double-folded inflict evoked by national and corporate culture during the course of overseas M&A in mind, the author proposed a culture integration model of overseas M&A for China enterprises, which provides a clear-cut scenario of overseas M&A in which Chinese enterprises are engaged, by making a thorough study based on cultural integration theory on each stage of the whole process in terms of national and corporate culture, among which four stages are highlighted: cultural assessment, cultural building, cultural communication and cross-culture training.Lastly, the thesis expects to offer helpful insights into the internationalization of Chinese enterprises which is in urgent need of the expertise of overseas M&A, especially that of culture integration, as an inexperienced newcomer in the international arena.