The impact of cultural differences and acculturation factors on post-acquisition conflict

The importance of cultural factors as antecedents of post-acquisition conflict has been recognized in previous research. Nevertheless, this recognition has translated itself into relatively little wide-scale empirical research. Therefore, this paper empirically examines the impact of cultural differences and acculturation factors on post-acquisition conflict. It proposes that post-acquisition conflict can be explained by cultural differences and acculturation factors. The sample is based on domestic and international acquisitions carried out by Finnish corporations during the period 2001–2004. The results show that organizational cultural differences and organizational cultural preservation increase conflict, partner attractiveness decreases conflict, while national cultural differences have no influence on the level of conflict. These findings confirm that both organizational cultural differences and acculturation factors are needed to explain the essential dynamics of post-acquisition integration.