Negotiation, cultural differences, and planning in mergers and acquisitions

Mergers and acquisitions (M&As) have proven to be a significant and increasingly popular strategy used by a large number of firms in many regions across the globe despite the consistent evidence on negative post-merger performance. While many studies focus on the pre-merger stage, the literature on post-merger integration processes is limited and it is rarely possible to find a study on the negotiation stage. The article explores the crucial yet neglected factors that influence negotiation outcomes. It provides a theoretical framework that provides opportunities for systematic research on the relationships between cultural differences, negotiation planning, and their interrelationship, and on negotiation outcomes.