Cultural Differences Can Enhance Performance

When handled effectively, the differences between cultures actually enhance the performance of cross-border acquisitions. Challenging conventional wisdom and based on a study of more than 400 transactions, that's the stunning conclusion of Piero Morosini, professor of strategy and execution at IMD, the International Institute for Management Development, Lausanne, Switzerland. In the study, which found "execution factors" more dominant than "strategic variables" as determinants of performance, companies with global execution capabilities primarily excelled at communicating business values across national cultures and developing key people to work effectively across borders. A summary of Morosini's work appears in the December issue of Perspectives for Managers, an IMD publication.