Longevity and Cultural Differences of International Joint V entures: Toward Time-Based Cultural Management

This article explores the relationships amongtime, organizational, and national cultural distance inan international joint venture setting. Moreparticularly, the extent to which the longevity of aninternational joint venture affects the intensity of itscultural differences, is investigated in a sample of 51international joint ventures set up in Hungary. Itaddresses certain mechanisms available to aninternational joint venture's managers and to its partners todeal with cross-cultural issues. The results suggestthat the temporal dimension is a cultural moderator ofprime importance, but to be totally effective, it must be combined with a willful strategy ofcultural integration.     

Too Big to Learn: The Effects of Major Acquisition Failures on Subsequent Acquisition Divestment

We examine whether firms learn from their major acquisition failures. Drawing from a threat‐rigidity theoretical framework, we suggest that firms do not learn from their major acquisition failures. Furthermore, we hypothesize that host‐country experience reinforces the negative effects of major acquisition failures. Our research hypotheses are tested using an event history analysis of 741 acquisitions undertaken by French listed and non‐listed firms in the USA between January 1988 and December 2008. We use failure divestment (divestment resulting from acquisition failure) as a proxy for acquisition performance. Consistent with our theoretical framework, we find that major acquisition failures have a negative impact on future acquisition performance. Furthermore, we find that such negative effects are reinforced by firms’ host‐country experience.     

Tying the Acquirer's Human Resource Management Quality to Cross‐Border Acquisition Divestment Probability: Curvilinear Connection with Slacklining

Cross‐border acquisitions are growing in volume and global economic importance, yet a considerable number end in failure. Many of these failures may be linked to people management‐related issues. We extend this stream of research by investigating the impact of the acquirer's aggregate human resource management (HRM) quality on cross‐border acquisition divestment. Our empirical analysis uses a panel database of 4128 cross‐border acquisition/year observations and an event history design. The findings confirm a curvilinear relationship and suggest that acquisition failures are not merely associated with poor HRM quality, but also with very high levels of HRM quality, that is, with both extremes. Moreover, our results show that financial slack has a significant moderating effect on the curvilinear relationship between HRM quality and the likelihood of acquisition divestment. Overall, our study reveals boundary conditions for the widely demonstrated positive relationship between HRM quality and organizational performance in an acquisition context.     

International acquisition performance and experience: A resource-based view. Evidence from French acquisitions in the United States (1988–2004)

Does an acquirer with extensive acquisition experience outperform an acquirer with little or no acquisition experience? Does an acquirer with varied growth mode experience (i.e. a company undertaking not only acquisitions but also joint ventures) outperform a company that has very homogeneous experience (i.e. a company growing exclusively through acquisitions)? The main purpose of our article is to examine these two questions in-depth and to attempt to provide some answers. The questions led us to analyze the valuation effect of the acquirer's experience for 291 French acquisitions in the United States. The results were mixed with regard to the relationship between acquisition performance, acquisition experience and heterogeneous experience. On the one hand we found no relationship between the acquisition performance and heterogeneous experience of French acquirers, which is not consistent with the literature on stock market valuation of homogeneous “experience trajectories” [Singh, H., Zollo, M., 1998. The impact of knowledge codification, experience trajectories and integration strategies on the performance of corporate acquisitions. Working Paper INSEAD, 98,62,SM.]. On the other hand, our findings indicate that the relationship between the acquisition performance and acquisition experience of French acquirers follows a curvilinear (inverted U-shaped) distribution.