Best Paper Award to Daojuan Wang, Daniel Hain and Li Thuy Dao

Best Paper Award to Daojuan Wang, Daniel Hain and Li Thuy Dao

The three researchers from Department of Business and Management received the award at the 43rd European International Business Academy (EIBA) Conference for the paper “Cultural effect on synergy realization in cross-border acquisitions: a contingency perspective”.

The 43rd European International Business Academy (EIBA) Conference, which took place in Milan, Italy, December 14-16 2017, is a well-known international conference with hundreds of participants.

The conference is organized by setting up 14 tracks with different topics. For each track the best paper is selected under double-blind review and chair’s selection. The paper by Daojuan Wang, Daniel Hain and Li Thuy Dao was in Track 9 (“International Human Resource Management and Cross Cultural Issues”) which explored the challenges faced by people working in an international and cross cultural context.


Abstract of the paper

Literature of mergers and acquisitions (M&A’s) lacks consensus about the impact of national and organizational culture differences on acquisition performance as well as moderators of such impact. The current paper aims at examining the simultaneous impact of both levels of cultural differences on synergy realization in cross-border acquisitions as moderated by pre-acquisition due diligence and post-acquisition coordination efforts.

We consider two types of synergies: (1) Type-1 synergies, which are explicit, more predictable, less tacit-knowledge intensive, and/or based on cost reduction and similarity, and (2) Type-2 synergies, which are more implicit, less predictable, usually tacit-knowledge intensive and/or complementary. We develop four hypotheses and test them, using regression analysis, on a sample of 103 international acquisitions performed by Nordic companies.

Our results show that both national and organizational cultural differences only exert a negative impact on the realization of Type-2 synergies, but no impact on the realization of Type-1 synergies. National cultural differences are found to have a stronger negative effect than organizational cultural differences. Moreover, proactive due diligence prior to the acquisition is found to moderate effectively the impact of high cultural distance whereas no evidence shows the moderating role of post-acquisition coordination efforts.


Further information

Assistant Professor Daojuan Wang
Department of Business and Management, Aalborg University
Email: daw@business.aau.dk  

Assistant Professor Daniel Hain
Department of Business and Management, Aalborg University
Phone: +45 9940 2724
Email: dsh@business.aau.dk

Assistant Professor Li Thuy Dao
Department of Business and Management, Aalborg University
Phone: +45 9940 8342
Email: lidao@business.aau.dk