Prof. Dr. Martina Fuchs (University of Cologne):
"The acquisition of German companies by foreign investors from China and India: Shared visions and patterns of interpretation"
Thursday, June 26, 10:00am – 11:30pm (WiSo Building, Room 310)
Cross-border acquisitions are a vital feature of globalisation. Today, companies of emerging economies, as China and India, invest in renowned companies in Germany and further established core regions of the world economy. Such investors from the emerging countries are new and unknown players. Hence, the management of the acquired company is challenged by opacity. The management perceives and interprets the situation in a particular way. Such perception and interpretation is crucial for successful takeovers. This contribution provides a review of recent interdisciplinary literature, starting with the perspective of international management studies on intercultural distance and then shifting the view on geographers’ notions of distance. The paper suggests distinguishing (dynamic and situation related) shared visions and (stable and socio-cultural) patterns of interpretation. The research is based on explorative, qualitative research methods. The contribution is work in progress. It presents a literature review conducted for an empirical research project about “Managers’ patterns of interpretation about takeovers and acquisitions by foreign investors”, which is supported by the German Scientific Foundation. The empirical analysis has started in 2014.