Cultural differences and capability transfer in cross-border acquisitions: The mediating roles of capability complementarity, absorptive capacity, and social integration

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Ingmar Björkman, Günter K Stahl, Eero Vaara

2007 Journal of International Business Studies Vol. 38 Issue 4 Article Cited by 428 Quartile

Abstract

This paper presents an integrative model of the impact of cultural differences on capability transfer in cross-border acquisitions. We propose that cultural differences affect the post-acquisition capability transfer through their impact on social integration, potential absorptive capacity, and capability complementarity. Two dynamic variables - the use of social integration mechanisms, and the degree of operational integration of the acquired unit - are proposed to moderate the effects of cultural differences on social integration and potential absorptive capacity. The implications for acquisition research and practice are discussed. © 2007 Academy of International Business. All rights reserved.

Affiliations

Department of Management and Organisation, Swedish School of Economics, Helsinki, Finland; INSEAD Euro-Asia and Comparative Management Research Centre, Fontainebleau, France; INSEAD, Singapore, Singapore; Ecole de Management de Lyon, Lyon, France; Department of Management and Organisation, Swedish School of Economics (Hanken), Helsinki 00101, Post Box 479, Finland