Chapter

Culture in Mergers and Acquisitions

Satu Teerikangas and Philippe Véry

in The Handbook of Mergers and Acquisitions

Published in print June 2012 | ISBN: 9780199601462
Published online September 2012 | e-ISBN: 9780191743320 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199601462.003.0016
Culture in Mergers and Acquisitions

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As part of the globalization trend experienced by organizations worldwide, the number of mergers and acquisitions (M&A) has been steadily rising. Despite this optimism, many of these ventures end up reporting failure. When seeking for causes behind these high failure rates, the “culture” factor tops the lists time and again, be it in domestic or international M&A. This chapter reviews extant academic literature on culture in M&A. More particularly, our analysis leads us to address the following questions: (1) how is culture defined; (2) how does cultural distance impact the performance of M&A; (3) what is the nature of the cultural encounter in M&A, and how should cultural change in M&A be managed; (4) in what ways do national cultures impact international M&A? Conclusions on the current state of the literature, an identification of key gaps, and opportunities for future research end the chapter.

Keywords: globalization; culture; cultural distance; national culture

Chapter.  16197 words.  Illustrated.

Subjects: Financial Institutions and Services

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