Managerial preferences in international merger and acquisition partners

Abstract

AbstractMerger and acquisition (M&A) activity is predominantly driven by a rational‐economic model.A growing body of evidence suggests that M&A outcomes also depend on sociocultural dynamics, especially perceived cultural compatibility.The issue of perceived cultural compatibility, and the emergence and acceptance of a new organizational culture and integrated managerial style are particularly critical to long‐term success.When the M&A is performed at an international level, then the dynamics are complicated by differences in national cultures and associated managerial styles.This article reports on a study to establish whether different national managerial groups (n=480) have similar/dissimilar attitudinal preferences towards strategic alliances with foreign partners. These preferences are then considered in the context of current patterns of actual activity.