Optimising intercultural synergies: A dynamic model of value creation in post-merger integration contexts

The research study presents a dynamic model to manage intercultural issues in post-merger integration (PMI) contexts. Employing the concept of fault-lines and fault-zones the model contributes to extant knowledge as it enables real value creation for mid-market companies such as EA by resolving PMI problems through practical solutions in real time. Cross-border mergers and acquisitions (M&As) activity across the world continues to occur unabated. Yet such deals post-merger face high failure rates. The main reason for failure cited in extant literature is cultural - both national and organisational. However, the literature is remarkably silent on the nature and attributes of cultural issues that have the power to create value or destroy such deals. The purpose of this study is to provide a dynamic model for leadership to optimise and manage intercultural issues during post-merger integration, combined with theoretical underpinnings and research rigour. Following a review of relevant literature, a case study approach was used which employed quantitative and qualitative data collection and analysis. Findings revealed that: (a) certain fault-lines can be identified that contribute to clash and fuse in PMI contexts (b) these fault-lines need to be managed across both intercultural and non-intercultural fault-zones (c) experiential learning has an intercultural dimension during the process of internationalisation (d) intercultural management is a specialism with specific skillset and competences that is related to the dynamic capabilities and experiential learning in an enterprise. Based on this, a dynamic model is put forward that enables leaders to harness synergies and creates value during PMI.