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...
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| Other Authors: | |
| Format: | Thesis |
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Massachusetts Institute of Technology
2022
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| Online Access: | https://hdl.handle.net/1721.1/146665 |
| _version_ | 1826201688170561536 |
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| author | Cheng, Cheng |
| author2 | Sull, Donald |
| author_facet | Sull, Donald Cheng, Cheng |
| author_sort | Cheng, Cheng |
| collection | MIT |
| description | 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. |
| first_indexed | 2024-09-23T11:55:08Z |
| format | Thesis |
| id | mit-1721.1/146665 |
| institution | Massachusetts Institute of Technology |
| last_indexed | 2024-09-23T11:55:08Z |
| publishDate | 2022 |
| publisher | Massachusetts Institute of Technology |
| record_format | dspace |
| spelling | mit-1721.1/1466652022-12-01T03:26:56Z How to Improve the Performance of M&As: from the Cultural Clash Perspective Cheng, Cheng Sull, Donald Sloan School of Management 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. S.M. 2022-11-30T19:39:56Z 2022-11-30T19:39:56Z 2022-05 2022-08-25T19:15:20.682Z Thesis https://hdl.handle.net/1721.1/146665 In Copyright - Educational Use Permitted Copyright retained by author(s) https://rightsstatements.org/page/InC-EDU/1.0/ application/pdf Massachusetts Institute of Technology |
| spellingShingle | Cheng, Cheng How to Improve the Performance of M&As: from the Cultural Clash Perspective |
| title | How to Improve the Performance of M&As: from the Cultural Clash Perspective |
| title_full | How to Improve the Performance of M&As: from the Cultural Clash Perspective |
| title_fullStr | How to Improve the Performance of M&As: from the Cultural Clash Perspective |
| title_full_unstemmed | How to Improve the Performance of M&As: from the Cultural Clash Perspective |
| title_short | How to Improve the Performance of M&As: from the Cultural Clash Perspective |
| title_sort | how to improve the performance of m as from the cultural clash perspective |
| url | https://hdl.handle.net/1721.1/146665 |
| work_keys_str_mv | AT chengcheng howtoimprovetheperformanceofmasfromtheculturalclashperspective |