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

In recent years, Chinese IT companies did frequent cross-border mergers and acquisitions with the purpose to obtain a stronger brand, better technology, talent, and to break trade barriers abroad, seeking broad overseas markets. A beautiful mind is not always accompanied by a happy ending. The serious cultural conflict in the merger far beyond the imagination of IT enterprises. In order to complete acquisitions quickly and achieve economic benefits, some IT companies demonstrated strong cultural attitudes and cultural implanted measures taken blindly in the cultural integration. That not only failed to achieve the integration of purpose, but intensify the contradiction between the two sides, resulting in a brain drain, inefficient enterprises.The failure of merger cases makes Chinese IT companies start to think carefully think about the culture integration in addition to think beyond the profit, the size,and the market share. In fact, the cultural integration in transnational corporate mergers and acquisitions plays a pivotal role for the success of mergers and acquisitions. In this context, to explore the relevant content about cultural integration of China’s IT enterprises’cross-border M is very important.In this paper, based on the scale of economic theory and corporate culture level theory, in-depth research about cultural integration of Chinese IT companies in the cross-border mergers and acquisitions were made. Firstly, the characteristics of IT business strategy are analyzed which do the groundwork for elaborating cultural integration of Chinese IT companies in cross-border M. Study on the performance of the corporate culture conflict is worked from spiritual level, system level, behavioral level and physical level on the basis of cultural level theory. Then analyses on the causes of culture conflict are made in terms of cultural traditions, values, management, psychological factors, the staff structure, etc. For the study of cultural integration methods, firstly, the content of the cultural integration is defined, then principles and patterns that effective cultural integration should follow are analyzed. In the respect of cultural integration steps and measures, three stages from cultural review, integration implementation to management guided are analyzed and explained in accordance with the integration of the research logical order Then, through the analysis of Lenovo’s acquisition of IBM case, the feasibility of the proposed ideas and methods are stepwise confirmed.Conclusions in this paper are:the cultural conflicts in transnational merger of IT companies perform show in four aspects, the spirit of culture layer,system of the culture layer, practices and corporate culture layer,material cultural level, so appropriate measures of culture integration for cross-border mergers and acquisitions of IT enterprise should be took from those four aspects. The appropriate principles based on the characteristics of IT companies’business strategy, should be flew when Chinese IT companies do culture integration in cross-border mergers and acquisitions. Clear content and right mode are necessary When the cultural integration program are designed.and different measures, gradual approach should be used from the cultural review stage, integration implementation stage to the managements guided stage.