Agricultural Roots and Subnational Cultural Heterogeneity in Domestic Acquisitions

• DOI: 10.1287/stsc.2021.0123
• Publication Date: 2021-03-19T13:09:01Z
• Authors: Hao Wang; Yuping Zeng; Oded Shenkar
• Keywords: Rice farming

Drawing on the novel-to-the-field rice theory, we study how subnational cultural heterogeneity impacts target performance improvement following an acquisition. Data from domestic acquisitions in Chinese beer industry show is significantly impacted by characteristics formulated through agricultural subsistence activities. We find that both similarity and dissimilarity influence performance: (1) transactions which acquirer are located culture regions, targets achieve greater than those firms a wheat region, (2) areas bought acquirers area gain acquired area. also acquirers’ experience with less beneficial their targets.