A link between post-acquisition acculturation and project management maturity

Abstract

PurposeNumerous firms in the automotive industry, to improve their competitiveness, have recently adopted mergers and acquisitions (M&As) strategies, particularly those in which a multinational enterprise from a developed country (DMNE) or a multinational enterprise from an emerging market (EMNE) acquires a DMNE. However, DMNEs in the industry typically do not acquire emerging market firms. In response, this paper aims to analyze that uncommon M&As process by focusing on the relationship between modes of post-acquisition acculturation and project management (PM) maturity. Because the literature addressing M&As does not correlate the acculturation process with project team maturity, this study seeks to partly fill that gap by proposing a framework for the relationship that draws upon Nahavandi and Malekzadeh’s (1988) research and Holmes and Walsh’s (2005) model.Design/methodology/approachThis paper present qualitative research based on a case study in the automotive industry of a DMNE’s acquisition of a Brazilian firm. For data collection, this research conducted 14 in-depth interviews with managers, the transcripts of which were analyzed using content analysis.FindingsContent analysis revealed differences between modes of acculturation perceived by the acquired and acquirer firms, as well as a gap between PM teams from both types of firm. A direct relationship emerged between the mode of acculturation and PM team, which constituted a factor driving the evolution of PM practices within the company. In recognizing that relationship, this research proposes and elucidates a framework that relates the mode of acculturation following the M&A process to PM maturity.Originality/valueNo previous research in the literature on M&As has analyzed post-acquisition acculturation and PM maturity in conjunction. For managers in post-acquisition companies, the proposed framework of this study is useful for understanding good management practices and, for project teams, for understanding the acculturation process.