Comparing critical success factors between European M&As in China and Chinese M&As in Europe

Abstract

Purpose The purpose of this paper is to compare the critical success factors (CSFs) between two groups of European mergers and acquisitions (M&As) in China and Chinese M&As in Europe. Design/methodology/approach In the paper, a mixed-method research design which combines primary case study with secondary questionnaire survey is applied. Findings The findings from the case study show the main differences with respect to CSFs between the two groups are related to: importance of relationship building in Chinese culture, Chinese culture trait of high power distance, Chinese decision process, complicated Chinese approval process for foreign companies doing M&As in China, integration of acquired Chinese/European company, and relatively new phenomenon of Chinese acquisitions in Europe. The Mann-Whitney-Wilcoxon test from the questionnaire survey provides statistical support for significant difference between the two groups regarding the factor of involvement and commitment of acquiring companies’ entrepreneurial CEO/chairman in the M&A process. Originality/value This paper is among the first attempts to conduct a comparative study which provides new insights into the differences between the CSFs in European M&As in China and in Chinese M&As in Europe.