ABSTRACT
As part of the globalization trend experienced by organizations worldwide, acquisitions remain the dominant strategic mode for growth and internationalization. Despite this optimism, many acquisitions report failure. When seeking for the causes behind these high failure rates, the culture factor has topped the lists for decades, be it as regards a domestic or cross-border acquisition (CBA). Recognizing the intensity of attention paid to the empirical study and theoretical review of research on the culture-performance relationship, this chapter reviews prior research on the cultural dynamics in acquisitions. To this end, we discuss: (1) the conceptualization of culture in acquisitions research, (2) the assessment of cultural distance and cultural fit, (3) cultural change in acquisitions, and (4) national cultures in CBA. We then conclude with critical conclusions on the current state of the literature, while identifying gaps and opportunities for future research.
