Enhance cross-border communication quality: the case of Chinese cross-border mergers and acquisitions integration

Purpose This study aims to empirically investigate how communication activities determine quality of cross-border communication in the context of Chinese cross-border merger &acquisition (CBM&A) integration process. The quality of cross-border communication is measured by perceived cross-border communication satisfaction. Addressing some significant challenges that Chinese strategic acquirers face such as language barrier and liability of emergingness, we tailored the highlighted communication activities during Chinese CBM&A integration process, such as communication message accuracy, communication channel efficiency and organizational structure change as communication expediters. Design/methodology/approach With survey data collected from executives responsible for post-acquisition integration in China and Europe, the authors have tested this conceptual path model with partial least square-structural equation modelling (PLS-SEM) approach. Findings The authors find that communication message accuracy is the most influential factor and exhibits significantly partial mediating effect via inter-organizational trust on quality of cross-border communication. Moreover, communication channel efficiency and communication expediters including communication officer and steering committee positively impact quality of cross-border communication. Furthermore, hiring management consultant and completion of integration within three years, in terms of integration speed, positively impact quality of cross-border communication. Originality/value Communication is an important – but very often neglected – pillar for a successful post-merger integration. This is especially true for the context of CBM&A activities. Thus, this paper closes the existing research gap and aims at contributing to improve the post-merger integration process.