Abstract

The major aim of this thesis is to elevate the understanding of the cross-cultural characteristics of Mergers and Acquisitions (M&As). It determines and contrasts Critical Success Factors (CSFs) focusing on comprehensive examples such Western Europe M&As by Chinese and Hong Kong (HK) firms plus Chinese and Hong Kong M&As by Western European firms. The research considers various crucial dimensions such as the cultural, leadership, organisational, process, strategic, and externalities according to the dynamic capabilities in M&As. For a better understanding of issues related to culture in this research, there were important theories inculcated in the research study from prominent academicians such as Hofstede, Adler, Trompenaars, Chen &Werle and, Kluckhohn & Strodberk for the critical analysis of the study. Categorised by the major enumerated aspects above, the research involves the success measure of closing the competency gap through the critical success factor (CSFs) and the M&As. There were two major questions of the research study concerning the success factors of M&As groups. The questions focused on the M&As Western Europe by Chinese and Hong Kong firms including the one in China and Hong Kong by Western European firms. There were simultaneously investigations of both the groups because of previous insufficient studies related to two M&A groups.

Highlights

  • The study focused on cross border mergers and acquisitions (M&As) between Asia and Europe with a focus on the Western Europe Mergers and Acquisitions (M&As) by Mainland Chinese and Hong Kong firms plus Mainland Chinese and Hong Kong M&As by Western European firms

  • The research identified the Critical Success Factors (CSFs) for M&As in Western Europe by Mainland Chinese and Hong Kong firms, and vice versa and explained why these firms should consider these CSFs in their M&As

  • The research identified the following CSFs are comparable among these two M&As groups and in the end, the research showed how could these factors be incorporated into an improved framework

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Summary

Introduction

The study focused on cross border mergers and acquisitions (M&As) between Asia and Europe with a focus on the Western Europe M&As by Mainland Chinese and Hong Kong firms plus Mainland Chinese and Hong Kong M&As by Western European firms. The study explains the prominence of the world foreign direct investment in Mainland China and Hong Kong. It states how the Chinese government recorded a high of US$ 139 billion of foreign direct investments (FDI). It explains how Mainland China and Hong Kong have enjoyed being the largest FDI destinations in the world within the last three decades showing that China and Hong Kong’s favourable environment makes it a desirable investment platform. Behind the United States and China, Hong Kong is the third-largest flow recipient destination of foreign direct investment in Asia in 2017, and that year, HK received US$104 in FDI, which is 11 percent less than in 2016.

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