Unpacking the role of corporate culture in cross-border M&As: evidence from China and machine learning insights

What the paper says

Purpose This study aims to investigate how corporate culture influences the performance of cross-border mergers and acquisitions (M&As) of Chinese listed firms, addressing the cultural barriers that often hinder M&A success from a resource-based view (RBV). Design/methodology/approach Using a sample of 1,499 cross-border M&A events by Chinese listed firms, the authors conduct regression analyses to assess the impact of strong corporate culture on short- and long-term M&A performance. In addition, machine learning methods are applied to evaluate the relative importance of specific cultural values. Findings Results indicate that strong corporate culture significantly improves both short- and long-term M&A performance. Innovation, quality and teamwork values play a greater role in enhancing short-term performance, while innovation and quality values are positively associated with long-term performance. Moreover, the positive impact of corporate culture on M&A performance is stronger when firms possess prior successful M&A experience and executives with overseas backgrounds. Originality/value This study enriches the literature on cross-border M&As by integrating a cultural perspective with the RBV and applying machine learning to analyze the role of specific cultural values. The findings offer practical guidance for firms to leverage corporate culture as a strategic asset in international expansion.