The 1990s were a “merger decade”. Never before did as many organizations merge or acquire other organizations, and above all, on a global basis. Cross-border mergers and acquisitions have become a major strategic tool for growth of multinational companies (Cartwright/Cooper 1993). The number of cross-border deals increased spectacularly from approximately 2.500 in 1990 to about 6.500 in 2000 as a result of globalization and increasing competition, just to name two reasons (OECD 2001). Since 2000, however, the picture has changed dramatically. Because of weak capital markets, a tight lending environment, and slowing economies all over the world, post-merger organizations focus on integrating their businesses rather than further expanding them through mergers and acquisitions. Enterprise integration has become a top priority of organizations in the 2000s. Unfortunately, those integration efforts frequently are not fruitful. Several studies point to failure rates of 50 percent and more (Ravenscraft/Scherer 1987; Bekier/Bogardus/Oldham 2001; Adolph et al. 2001). Although there are literally hundreds of reasons why the failure rates are so high, many can be traced back to cultural differences. A.T. Kearney found that there is an explicit relationship between cultural barriers and the success of international mergers (Augustine 1999). Other researchers state that the underestimation of differences between national cultures is among the most frequent mistakes of international mergers and acquisitions’ management (Cahill 1996; Vestring/King/Rouse 2003; Weber/Camerer 2003). Consequently, the failure rates are exceptionally high in cross-border mergers where differences between national cultures play an essential role (Cartwright 1998). If differences between national cultures are among the main reasons for problems in international mergers and acquisitions, what can be done to deal with those problems? Firstly, there is a need to diagnose differences between national cultures. To do so, a case study was applied in which cultural differences among German, US-American, and Japanese co-workers were diagnosed. The purpose of this study was to find out in which ways different cultural values and attitudes are effecting post-merger organizations in their integration phase. Secondly, management should implement measures for overcoming culture-bound problems during the post-merger phase. Hence, based on the survey's result, the paper introduces skills and methods, which might promote a smoother and more efficient integration process in future international mergers and acquisitions. The article is structured in the following manner: After an introductory outline of the terminology regarding national culture, we introduce relevant cultural dimensions and problem areas of international post-merger integration. We go on to describe the methodology and empirical model designed to test the central hypotheses (that differences between national cultures can explain whether problems occur in international post-merger integration), and to present the results of the study. After discussing the limitations of the study, we dwell on implications for the management of cultural differences in post-merger integration. In the final section, we draw the conclusions
