A contrasting point of view about the benefits of cultural differences is based in
theory and research about diversity (Cox, 1993). The logic is that more variety in peoples and practices enriches the gene pool of ideas and potential actions in organizations.
Applied to M&A, this perspective contends that differences rather than similarities create the “friction” needed for synergies and learning (Vermeulen & Barkema, 2001). Cultural differences, it has been argued, can also break rigidities in acquiring firms, help them to develop richer market and management knowledge, and foster innovation (Schreyögg, 2005). Finally, M&A can provide the firms with a competitive advantage by giving them access to unique and potentially valuable capabilities that are embedded in a different culture (Olie & Verwaal, 2004).