International mergers and acquisitions performance: Acquirer nationality and integration approaches

Empirical findings and theoretical developments from the last 15 years suggest that the influence of culture on the integration process is critical and should be included in any framework that consider international M&A performance. However, the interrelationships between corporate and national cultures, and their influence on merger success are not clear, and the results of empirical studies are contradictory. The major objective of this paper is to provide a framework that addresses the effects of national and corporate cultural distance on various integration approaches, and thereby explain international M&A performance. Specifically, it suggests that international M&A that approximate its 'ideal types' of integration approaches is hypothesized to be more effective than other M&A. Based on this framework propositions that can serve as a guide for future research are suggested. Finally, the framework can assist managers of international mergers in analyzing, evaluating, and planning before the merger and in implementing the chosen integration approach after the merger.