This paper compares and contrasts the Renault-Nissan and DaimlerChrysler Mitsubishi mergers to consider the relative and combined effects of national and organizational culture on the performance of Nissan and Mitsubishi. It also examines the reasons why the Renault-Nissan merger was successful and the Daimler-Chrysler merger failed. It finds that Japanese national culture influenced organizational culture and HRM practices which created organizations that had no sense of urgency, profit orientation and accountability and led to poor market and financial performance. It also finds that leadership was a major factor impacting on the success of the turnaround efforts of these two organizations. These findings have implications for leaders and human resource management practitioners engaged in international business and are of particular relevance to Western organizations working with organizations in high context countries with a collectivist rather than individualistic orientation.
Available at: http://works.bepress.com/carol_gill/36/