Martine Cardel Gertsen

Cultural Dimensions of International Mergers and Acquisitions

International Mergers and Acquisitions - the issues and challenges, S. Cartwright Different approaches to the understanding of culture in Mergers and Acquisitions, M. Cardel Gertsen et al Cultural awareness and national versus corporate barriers to acculturation, R. Larson, A. Risberg Managing cultural differences in cross-cultural Mergers and Acquisitions, S. Fortsmann A cross-national assessment of acculturative stress in recent European Mergers, P. Very et al Leadership and culture in transnational strategic alliances, A.R. Malekzadeh, A. Nahavandi Hungarian culture and management issues within foreign-owned Hungarian production companies, S.B. Baca The pragmatics of communication in Mergers and Acquisitions, St. Kleppsto Foreign Acquisitions in Denmark, M. Cardel Gertsen, A.M. Soderberg.

Recontextualization of the Corporate Values of a Danish MNC in a Subsidiary in Bangalore

The authors analyze the recontextualization of the corporate values of a multinational company (MNC) in one of its subsidiaries. The authors draw upon qualitative material from a case study of a company of Danish origin and its endeavors to implement its corporate values in an Indian subsidiary in Bangalore. The authors show how these values take on new meanings when interpreted by local employees. On the one hand, their understandings are shaped by the prevailing meaning system, including leadership ideals, and on the other hand, by their resources and strategies. To further their understanding of the recontextualization, the authors point to a need to go beyond the system of signification shared within a national culture and include social agency, of which they conceive in Bourdieusian terms.

Selecting and training Scandinavian expatriates: Determinants of corporate practice

On the basis of an empirical study of 146 Scandinavian firms, this paper analyses possible determinants of corporate practice regarding the selection and training of expatriates. The analysis indicates that the home country of the multinational company, its total number of expatriates, the extent to which the company has expatriates in culturally distant countries, and the type of industry, all affect corporate practice. The results of the study are discussed, and ways of increasing our knowledge of this phenomenon are indicated.

Inpatriation in a globalising MNC: knowledge exchange and translation of corporate culture

This paper draws on a qualitative case study of inpatriation in a globalising multinational company headquartered in Denmark. Based on analysis of in-depth interviews with inpatriates from the People’s Republic of China, the USA, Brazil and Japan, we discuss their experiences at headquarters. We focus on the potential of inpatriates as mediators of knowledge flows between headquarters and subsidiaries. Although the inpatriates’ knowledge is seemingly not exploited in a systematic manner, they are well situated to act as boundary spanners, and also as cultural mediators. The inpatriates’ perceptions of the case company’s corporate values of openness, empowerment and worklife balance point to their potential as mediators when developing a global company’s corporate culture and translating it to various cultural contexts. We also touch upon the roles that an HR department plays in inpatriate assignments, and finally, we discuss the implications of our study for new HR initiatives and future research.

Being a 'modern Indian' in an offshore centre in Bangalore: cross-cultural contextualisation of organisational identification

This article explores how the socio-cultural contexts of a subsidiary shape the organisational identification articulated by its local employees (HCNs). This is relevant as companies globalise with greater socio-cultural distances between organisational units and their employees as a consequence. The analysis is based upon the study of an off-shore service centre in Bangalore that performs financial services for an MNC headquartered in Denmark. The identification with the MNC and its corporate culture expressed by local employees is conveyed as being connected to external self-enhancement (belonging to an esteemed organisation) as well as internal self-enhancement (feeling important within the organisation). The corporate culture is made sense of in the local Indian context and shaped by their particular characteristics as members of Bangalore’s international workforce. We argue that understanding and enhancing organisational identification requires careful consideration of the socio-cultural contexts as well as backgrounds of individuals and professional groups.

Reception and Recontextualization of Corporate Values in Subsidiaries

There is widespread belief that a globally shared set of corporate values is a viable managerial tool and a unifying force in a multinational company (MNC) (Welch & Welch, 2006). Therefore, many MNCs consider the transfer of such values to be crucially important when they buy or establish subsidiaries outside their country of origin. For the tool to be efficient, however, the corporate values must not only be transferred to the subsidiary, but also be well received and internalized by local managers and employees. This is a complex process, and literature is inconclusive as to how to ascertain whether values that have proved successful in one context will thrive in another. Some researchers suggest that previous international experience makes the transfer of immaterial assets (values, thought patterns and practices) easier for the company (e.g., Delios & Beamish, 2001), and that ‘cultural proximity’ increases the chances of success (e.g., Kostova, 1999; Kostova & Roth, 2002). However, Brannen (2004) uses the example of the Walt Disney Company’s success in Japan and initial failure in France to illustrate that neither cultural proximity nor international experience guarantee a smooth transfer of immaterial assets. Therefore, although there is some research on attempts by MNCs to transfer immaterial assets such as corporate values to different host-country environments, we do not yet have a full understanding of the process.

Winning Behaviours in East and West

This chapter investigates how the Carlsberg Group,1 following a series of international mergers and acquisitions in 2008, launched a strategic concept labelled Winning Behaviours in all markets in which the multinational company operates. From a company perspective, the strategy aims to guide how business is done in order to achieve better global alignment, whilst at the same time allowing local brands and initiatives to flourish. We describe how the corporate communications and human resource departments at headquarters facilitate this strategic process, and also look at how these Winning Behaviours have been recontextualized and given sense by local and expatriate managers in selected subsidiaries in Asia. In Carlsberg Malaysia, for example, the Winning Behaviours are a very visible part of the company’s visual identity. The photograph above shows vignettes posted in the subsidiary to illustrate the five behaviours.

Knowledge Exchange and Intercultural Learning through Inpatriation

The quote above is from an interview with a Chinese inpatriate posted at the Danish headquarters of the multinational company (MNC) Techbi.1 In spite of the fact that the company’s top management has identified China as a crucial growth region, his words illustrate that in his experience, his particular knowledge and perspective are not exploited fully. By drawing more on the backgrounds and qualifications of inpatriates, the MNC may find it easier to exchange knowledge and strike the right balance between global integration and local adaptation, not least at the cultural level (see Gertsen & Soderberg, 2012).