Measuring cultural friction in cross-border mergers and acquisitions using a microfoundation-based approach
Critical Perspectives on International Business
ISSN: 1742-2043
Article publication date: 6 November 2024
Abstract
Purpose
Cultural friction (CF) was introduced by researchers to overcome the issues and challenges of cultural distance measurement in the context of cross-border mergers and acquisitions (CBMAs). However, this construct has proved itself to be problematic to operationalize. To address this challenge, this paper aims to elaborate on a CF measurement instrument based on individual perceptions in CBMAs. This study used a microfoundation approach to measure CF, relying on managers’ interactions in CBMA settings.
Design/methodology/approach
To develop and validate a CF measurement in the context of CBMAs, this study followed a classical procedure including items development, lab tests and one field-study and an assessment of the construct validity.
Findings
The final instrument developed for measuring CF is composed of six critical incidents with three associated items each. The factor analysis revealed that the scale used in the field-test measures two factors of CF: internal and external. Reliability and discriminant validity are tested, demonstrating a good discriminant validity of “external” CF. The final measurement can be used as a valid and reliable scale in further studies to assess CF in the context of CBMAs.
Originality/value
This paper’s originality lies in developing and validating a CF measurement instrument that does not rely on cultural distance frameworks. The resulting scale shows the interest in considering micro-individual perceptions – the microfoundation level – for analyzing an organizational phenomenon as culture in CBMA contexts. Using a micro-founded approach, this study offers promising avenues for researchers who wish to study cultural interactions in international settings.
Keywords
Acknowledgements
The authors would like to sincerely thank the anonymous reviewers for their insightful comments and constructive feedback, which greatly contributed to improving the quality of this manuscript. The authors are also deeply grateful to our colleague, Mark Thomas, PhD, for his invaluable assistance in reviewing the text and ensuring clarity and precision in language.
Conflict of interest: The authors report there are no competing interests to declare.
Citation
Durand, M. and Very, P. (2024), "Measuring cultural friction in cross-border mergers and acquisitions using a microfoundation-based approach", Critical Perspectives on International Business, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/cpoib-04-2024-0035
Publisher
:Emerald Publishing Limited
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