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

Yaakov Weber, Israel Drori

Research output: Chapter in Book / Report / Conference proceedingChapterAcademicpeer-review

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.

Original languageEnglish
Title of host publicationAdvances in Mergers and Acquisitions
Pages119-142
Number of pages24
Volume7
DOIs
Publication statusPublished - 2008

Publication series

NameAdvances in Mergers and Acquisitions
Volume7
ISSN (Print)1479361X

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Weber, Y., & Drori, I. (2008). The linkages between cultural differences, psychological states, and performance in international mergers and acquisitions. In Advances in Mergers and Acquisitions (Vol. 7, pp. 119-142). (Advances in Mergers and Acquisitions; Vol. 7). https://doi.org/10.1016/S1479-361X(08)07007-5