Managing Culture in International Mergers and Acquisitions

The aim of this conceptual paper is to examine the current state of the literature on international M&A in order to achieve a better understanding of the influence of culture on performance and attempt to solve the cultural puzzle. An analytical framework is proposed which proceeds from the cultural distance paradigm to address strategies for managing culture on the ground that culture can be an asset or a liability depending on the way it is handled. This framework thus develops two contrasting orientations towards cultural stakes and suggests that the performance of cross-border M&A is contingent upon cross-cultural management capabilities. In pointing to the importance of managing culture in post-acquisition integration, this paper aims at providing a useful guide for future research, including potential “actionable prescriptions” for cross-border M&A integration.