Since the Asian financial crisis of 1997-1998, Korea has experienced a dramatic influx of foreign capital directed toward ailing Korean firms. This study shows how three Western companies integrated the human resources and organizational cultures of their Korean target firms and how Korean employees responded to the implemented changes. Data revealed that changes in human resource management and organizational culture were not only tolerated but even appreciated by the employees of Korean target firms. However, organizational culture changes encouraging more individualism and contradicting Confucian values were negatively perceived. The paper concludes with a discussion of the study's practical implications and limitations.
In recent years, Japan has seen a sharp increase in foreign cross-border merger and acquisition (M&A) transactions. Among the larger cross-border M&A transactions in Japan, a few multinational companies are already struggling with their acquisitions. In this study, we systematically analyzed and compared the unsuccessful DaimlerChrysler-Mitsubishi acquisition with the successful Renault-Nissan acquisition. We collected secondary data and conducted interviews with both Japanese and foreign managers. Despite some similar starting conditions, these acquisitions developed widely divergent outcomes. In this study, we have focused on post-acquisition integration and separated it into human integration and organizational integration. Findings indicate that human and organizational integration are strongly interwoven in Japan, with human integration being a necessary prerequisite for organizational integration. These findings highlight the importance of the human factor in the success of acquisitions. Active communication, participation, assertive leadership, commitment and the creation of a sense of urgency have been found to facilitate human integration. With regard to organizational integration, the autonomy of the integration management and independence from any keiretsu network have been identified as important factors.
Falkenberg, A.; Hull, C., Hung, C., Glamheden, H. (2007): "Opening the Black Box - The Relationships between Communication, Technologies, Virtual Team Processes and Performance of Virtual Organizations", Strategic Management Society Mini-Conference ‘New Frontiers in Entrepreneurship', Catania, Italy, May, 2007
