Using International Corporate Communication Theory for the Strategic Practice of Merger Communication - Why the Globally Oriented DaimlerChrysler Deal Had to End Up in Conflict Because of a Failure to Take Communicational Issues Into Account
The paper analyses intra-corporate conflict, based on the case study of the DaimlerChrysler merger. This analysis is then broadened to compare PR and its contexts in Germany and the USA. The authors apply the International Corporate Communication Compass to the DaimlerChrysler deal to show what advantages could have been gained by using PR theory to map out areas of conflict and harmony in a cross-cultural corporate merger, showing how such theory could be applied to similar situations in the future.
The DaimlerChrysler takeover failure revisited from a varieties-of-capitalism perspective
PurposeThe purpose of this paper is to revisit the disastrous DaimlerChrysler AG takeover episode from 1998 to 2007 in order to arrive at a more comprehensive explanation of this and other merger and takeover failures based on institutional theory.Design/methodology/approachThe case study is based on various secondary sources of information and on the insights that one of the authors gained from working for 14 years in various positions for Daimler-Benz and DaimlerChrysler.FindingsDaimlerChrysler failed because top management made mistakes in trying to globalize the company. They were unable to realize possible synergies between the two companies, which brought complementary resources into the merger. Furthermore, they did not account for the institutional embeddedness of strategies when they adopted lean production globally, diffused the production system developed in Germany to other parts of the world and tried to implement a global stock enlisted in New York and Frankfurt. The underlying theoretical framework is relevant for other merger and acquisition cases. It features institutional embeddedness, path dependency and institutional arbitrage.Originality/valueThe paper develops an institutional perspective on DaimlerChrysler and on cross-border merger and acquisition failure more generally. The perspective is organized around the varieties-of-capitalism approach. This contribution is important because there is increasing dissatisfaction with the dominant explanation of cross-border merger and acquisition failure, which is based on the allegedly failed management of culture “clashes.”
The contribution of charcoal production to rural livelihoods in a semi-arid area in Kenya
Forest incomes in the form of both timber and non-timber forest products are an important source of livelihood for many communities in Africa. A major forest resource is charcoal, which contributes to the livelihoods of millions across the region. While incomes from charcoal are used to meet a wide spectrum of needs within rural livelihoods, the role of charcoal production on livelihoods of small-scale producers is not well understood. Therefore, we provide an example on the importance of charcoal on livelihoods in an agropastoralist community in a semi-arid region in Kenya. Based on a household questionnaire targeting 150 charcoal and 150 non-charcoal makers, as well as focus group discussions, we assessed the determinants for participation in charcoal production and developed a household typology based on charcoal income dependence. We also determined the role of charcoal in income equalization and poverty reduction. Our study shows that charcoal contributes about 20% of the household income in the study area. Gender, land size and the number of food-scarce months are the key determinants of participation in charcoal production. Based on the poverty analysis, we conclude that even though charcoal income does not lift the producers out of poverty, it can mitigate the impacts of poverty by reducing the poverty gap and poverty severity. Based on our findings, we recommend a multipronged approach to address sustainable rural livelihoods including a more explicit acknowledgement of charcoal production as a source of rural income. We also recommend broadening of the local livelihood base and a more active management of the woodland to ensure the sustainability of the income.