Cultural Perspective of Acquisitions Between Microsoft and Nokia in Kenya

Abstract

There have been many failures rates involving acquisitions where corporate or national cultural differences are detrimental to acquisitions performance. However cultural differences may serve as sources of value creation, and there is empirical evidence that they may in fact improve performance. Findings from some of the available studies show that culture is a very important element for the success of any acquisition while other indicated a contrary view hence a knowledge gap on the role of cultural perspectives of acquisitions. The objective of the study was to determine the cultural perspective of acquisitions between Microsoft and Nokia in Kenya. This study employed a case study design to obtain the necessary and required qualitative data regarding the cultural perspective of acquisitions between Microsoft and Nokia in Kenya. This allows a particular issue to be studied in depth and form a variety of perspectives. In selecting a case, Microsoft and Nokia were selected bearing in mind the available time and resources. The population of interest was the management staff of the Microsoft that was assimilated during the acquisition of Nokia. The researcher interviewed the Country Manager, Human resource manager, Finance manager, Operations and Support manager and Partner Sales manager in Nairobi. Primary data was collected from respondents using questionnaires and through personal interview method. The interview guide with open-ended questions was used to collect data on respondents‘ perceptions of the issues under study. The data collected was analysed using the content analysis technique. The study found that Nokia and Microsoft went in the combination with an aim of expanding product portfolios, to conquer the new market of smartphones and acquire technology, research and development and resources which would enable the company to compete on a global scale. The study deduces that cultural difference influences the success of the acquisition. The study concludes that culture of the acquiring Company did not affect the acquired company‘s culture. The study recommends that there is need for companies to increase formal and informal training programs to their staff so as to enhance cultural compatibility which in turn enhances their sense of ownership in the acquisitions. The employees being an important element in offering the human resources should be accorded top priority during acquisition through regular updates of the process and the implications of the process in order to avoid uncertainties‘ and confusion among the employees.