The Impact of Cultural Differences on Mergers and Acquisitions: A Comparative Analysis through Case Studies

Abstract

Against the background of rapid economic growth and the prevailing global trend of cultural fusion, the landscape of mergers and acquisitions (M&As) is rife with cross-border and cross-cultural transactions. This paper delves into the profound impact of cultural disparities on M&As in the context of the ever-accelerating globalized economy. It does so by conducting a comparative analysis of various cross-cultural M&A cases, with a primary focus on dissecting instances of M&A failures resulting from cultural divergences. This paper also offers a balanced perspective by incorporating a case study of a successful M&A that navigated significant cultural diversity. Through these analyses, it seeks to unearth valuable insights for both scholars and practitioners. This paper not only presents potential solutions for managing cultural challenges but also scrutinizes the hurdles that arise from integrating diverse cultures in cross-cultural M&As. The findings contribute to a nuanced understanding of the intricacies involved in M&A transactions in an increasingly interconnected world.