Change of companies via acquisition by foreign investors

Effects of the acquisition of German companies by Chinese and Indian investors on strategy, organization and human resources

Prof. Dr. Dirk Holtbrügge
Dr. Sue Claire Berning
Friedrich-Alexander-Universität Erlangen-Nürnberg
Fachbereich Wirtschaftswissenschaften, Lehrstuhl für Internationales Management

Companies from China and India are investing more and more abroad. Germany is particularly in focus, with already more than 1,000 Chinese and Indian company acquisitions. This growing presence is judged very controversially: on the one hand “technology theft”, authoritarian leadership style and low product quality are criticized, and on the other hand, it is found that Chinese and Indian investors in Germany create jobs, while respectively retaining them, and have managed a successful turnaround in many ailing companies. The initial assumption is that both Chinese and Indian investors, along with the acquired German company, must have a high degree of resilience in order to cope with the induced disruptive changes.

What often just seems like a change of ownership in the company, may also bring about a variety of questions concerning the reality of day-to-day business:

What impact do Chinese and Indian investments have on corporate strategy, organizational structure and culture, human resource management, working relations and work attitudes, and finally, on the success of the acquired company in Germany?

How can we ensure avoiding quality losses to undesired know-how drain, and damaged corporate image?

How can the different management concepts be combined in a new organizational culture, and the intercultural interfaces between the partners be moderated?

What impact do acquisitions by Chinese and Indian companies have on the work attitudes and motivation of German employees?

What recommendations can be derived for potential Chinese and Indian companies, German companies and also for the economic policies?