Title: Mergers and acquisitions performance paradox: the mediating role of integration approach

Authors: Yaakov Weber, Shlomo Yedidia Tarba, Ziva Rozen Bachar

Addresses: School of Business Administration, College of Management, Rishon LeZion, Israel. ' School of Business Administration, The Center of Law and Business, Ramat-Gan, Israel; Department of Economics and Management, The Open University, Ra’anana, Israel. ' Department of Political Sciences, The Western Galilee College, Akko, Israel

Abstract: Based on theory and case studies, the merger literature suggests that the implementation of integration approaches is important for effective post-merger integration. This hypothesis is tested with a relatively large sample by focusing on the fit of the integration approach to the synergy potential of the merged companies and the cultural differences between them. Findings suggest that the fit of the integration approach is positively related to integration effectiveness and mediates its relationship with synergy potential and cultural differences.

Keywords: mergers and acquisitions; cultural differences; synergy; integration fit; performance; organisational culture; post-merger integration.

DOI: 10.1504/EJIM.2011.040911

European Journal of International Management, 2011 Vol.5 No.4, pp.373 - 393

Published online: 26 Jun 2011 *

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