Service Quality Perceptions of Foreign Direct Investors

ABSTRACT

In this article, the potential disparity between foreign direct investment (FDI) clients' service quality expectations and the actual service experienced (Gap 5) and how these impacts FDI inflows are investigated. Methodological triangulation encompassing quan-titative and qualitative methods is used. Contrary to the quantitative findings, the qualitative findings indicate that Gap 5 exists among the FDI clients. This is the first time the service quality model (performance-based construct) has been used to study FDI issues. Rather than applying the predominant “inside-out” mindset, the model adopts an “outside-in” mindset that uses perceived (actual) service as a reference point for clients' evaluation of service quality.     

Partial or total integration in a cross‐border merger? Building a Nordic bank culture

The rate of failure for international mergers and acquisitions (M&As) is exceptionally high, since the integration of merging firms does not function well. Using a process perspective, this study aims to analyze the integration process in a cross‐border merger and the development of a common organizational culture. A framework based on premerger cultural and organizational fit, synergy, and resulting organizational culture is developed to study the growth of Nordea, a merger of four Nordic banks. Data include in‐depth interviews and secondary sources. This case study shows how cultural and managerial differences are dealt with and synergies realized. Building a broad organizational culture involving human resource management, decision making, technology, competitiveness, and customer relationships is necessary for merger integration, but it is costly and difficult. We suggest that success in mergers lies in managers creating a new cultural identity with unique values and perspectives.