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acquiring and the acquired company. However, the transfer of embedded knowledge is not
guaranteed by each international assignment. While some studies have revealed the importance
of prior working experience with a specific host country or with a particular entry mode as a
success factor for expatriates involved in the integration of mergers, 47 this has not been confirmed
for acquisitions. In a study by He´bert et al., prior experience did not have an impact on
the performance of the acquired firm.48
In contrast to these findings, the above-mentioned study on M&As in Germany revealed that
successful integration is dependent upon managers’ industry experience, experience with similar
projects, and particularly in the case of cross-border alliances, level of intercultural competence.
49 An emphasis on industry experience is in line with the suggestion by He´bert et al. who
state that industry experience is an important asset when staffing an acquired subsidiary with an
expatriate because it can lead to a transfer of best practices.50
These arguments have implications for the staffing of the post-merger integration team. He´bert
et al.51 suggest that acquiring companies should not completely rely on the placement of expatriates
within the top management team of an acquired subsidiary. They suggest creating a strong
team including a mix of both groups – expatriates and local members of top management – and
that the acquisition integration be viewed as a collective learning process.
CHAPTER 4 IHRM IN CROSS-BORDER MERGERS & ACQUISITIONS, INTERNATIONAL ALLIANCES AND SMEs 89
A study by Villinger of 35 acquisitions by western MNEs in Hungary, the Czech Republic,
Slovakia and Poland found that post-acquisition managerial learning52 highlights the importance
of appropriate cross-border management skills. The author emphasizes that local language
skills as well as sensitivity towards cultural differences are crucial for M&A success. It is
especially important to note this when companies from developing countries represent the
acquired firm in the M&A process. As Villinger53 notes:
Interestingly, although language and communication problems are clearly pointed out as the key barrier
to successful learning from both sides, there seems to be a consensus that the command of the
partner’s language is mainly a requirement for eastern managers, and significantly less so for western
partners. This may be surprising, as it can lead to a situation in which a hundred eastern European
managers have to learn German, instead of a small number of German expatriates learning the local
language. However, it may be argued that the language chosen for (future) communications will
depend on the expected direction of ‘the flow of learning’ between the two partners.