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The linkages between cultural differences, psychological states, and performance in international mergers and acquisitions

Advances in Mergers and Acquisitions

ISBN: 978-1-84855-100-8, eISBN: 978-1-84855-101-5

Publication date: 6 October 2008

Abstract

A model focusing on the role of the individual in national and corporate culture clash situations, during post-merger integration, is presented. The theory of psychological contract is adapted to explain different individual expectations in domestic versus international mergers and acquisitions (M&As). It is proposed that expectations on the part of both parties to the merger can act to moderate the effects of culture clash in M&As on acquired management attitudes and behavior, and thereby influence post-merger turnover and integration success. Thus, the model explains the inconsistencies of empirical findings about the different effects of national versus corporate cultural differences on M&A performance. The implications of these ideas for research and practice are discussed.

Citation

Weber, Y. and Drori, I. (2008), "The linkages between cultural differences, psychological states, and performance in international mergers and acquisitions", Cooper, C.L. and Finkelstein, S. (Ed.) Advances in Mergers and Acquisitions (Advances in Mergers and Acquisitions, Vol. 7), Emerald Group Publishing Limited, Leeds, pp. 119-142. https://doi.org/10.1016/S1479-361X(08)07007-5

Publisher

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Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited