Managing the human side of cross-border acquisitions in South Korea

Abstract

Since the Asian financial crisis of 1997 - 1998, Korea has experienced a dramatic influx of foreign capital directed toward ailing Korean firms. This study shows how three Western companies integrated the human resources and organizational cultures of their Korean target firms and how Korean employees responded to the implemented changes. Data revealed that changes in human resource management and organizational culture were not only tolerated but even appreciated by the employees of Korean target firms. However, organizational culture changes encouraging more individualism and contradicting Confucian values were negatively perceived. The paper concludes with a discussion of the study's practical implications and limitations. (c) 2007 Elsevier Inc. All rights reserved.