Cultural Differences in The Acquisition Process

Bimo Satrio Putranto, Prof. Amin Wibowo, S.E., M.B.A., Ph.D.

2023 | Tesis | S2 Manajemen

In globalization and digitalization era, certainly the competition in every industry will be very competitive in the next several years. If a company wants to compete effectively and efficiently, they need to innovate something. One of the efforts to innovate is doing foreign direct investment particularly the merger & acquisition. In today's globalized economy, cross-border acquisitions are more common than ever as businesses want to grow and tap into new markets. But choosing to purchase another business is a difficult process affected by several variables, one of which is cultural distance. The term "cultural distance" describes the differences in cultural norms, attitudes, and practices between the target and acquiring organizations. Managers and politicians must understand how cultural distance affects organizations' acquisition choices in order to successfully navigate the difficulties of cross-border mergers and acquisitions. Through this research, the author will visualize the acquisition process of multinational Japanese company which involve many parties. The final objective enhances company ability to navigate and control the cultural differences and ultimately achieve the desired synergies and performance improvements associated with mergers and acquisitions by looking at the ways in which cultural factors affect integration efforts

In globalization and digitalization era, certainly the competition in every industry will be very competitive in the next several years. If a company wants to compete effectively and efficiently, they need to innovate something. One of the efforts to innovate is doing foreign direct investment particularly the merger & acquisition. In today's globalized economy, cross-border acquisitions are more common than ever as businesses want to grow and tap into new markets. But choosing to purchase another business is a difficult process affected by several variables, one of which is cultural distance. The term "cultural distance" describes the differences in cultural norms, attitudes, and practices between the target and acquiring organizations. Managers and politicians must understand how cultural distance affects organizations' acquisition choices in order to successfully navigate the difficulties of cross-border mergers and acquisitions. Through this research, the author will visualize the acquisition process of multinational Japanese company which involve many parties. The final objective enhances company ability to navigate and control the cultural differences and ultimately achieve the desired synergies and performance improvements associated with mergers and acquisitions by looking at the ways in which cultural factors affect integration efforts

Kata Kunci : International M&A, Cultural Differences, Multinational Company, Integration Process