How to Improve the Performance of M&As: from the Cultural Clash Perspective

Entrepreneurs and founders are often interviewed on culture-related topics, especially when their organization is under strategic expansion and transformation. Because of the sensitivity of culture to organizational modifications, corporate culture has been a long-lasting arguable concern discussed over decades. Organizational evolutions may change the current cultural attributes and lead to positive or harmful effects. In parallel, mergers and acquisitions (M&As) growing to be one of the most desirable strategies under the background of technology and economic deepening, more companies decide to purchase or merge with existing companies to increase market penetration than raise the cost of incubation or product innovation. This thesis intends to provide suggestions to companies interested in M&A activities on how to improve outcomes from a cultural perspective. With the literature review and data analysis, this paper introduces the definition of culture and culture clash and why they matter in practice. Then, we referenced the research published by Marchetti (2019) to present the key factors that influence cultural compatibility for increasing M&A outcomes regarding the deal announcement and acquirers' shareholder value. Eventually, we used secondary survey results to conclude effective solutions to improve M&A performance after the deal announcement.

Name thesis:degree_name

Master

Department dc:contributor.department

Sloan School of Management

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2022

Author dc:creator

• Cheng, Cheng

Advisor dc:contributor.advisor

• Sull, Donald

Statement dc:rights

• In Copyright - Educational Use Permitted
• Copyright retained by author(s)

Licence dc:rights.uri

• https://rightsstatements.org/page/InC-EDU/1.0/

Handle dc:identifier.uri

https://hdl.handle.net/1721.1/146665

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/146665