Document Type
Article
Publication Date
4-1-2005
Abstract
Many mergers and acquisitions have proven successful due to their additional shareholder value creation, combined synergies in the research and development arena or improved consumer marketing of related products. This paper seeks to explain a primary cause of less successful mergers or acquisitions (M/A) through the prism of a multi-scale, iterative, Prisoner’s Dilemma taking place between department managers. The paper first presents the theory of the firm and its attempts to explain why companies merge and the sources of their subsequent success or failure brought on by M/A activity. Aspects of “Coping Theory,” “Resource (conservation) Theory,” and “Social Comparison Theory” are then used to analyze the experience of employees charged with making the merger or acquisition a success. Lastly the paper discusses elements of cooperation within the context of ethnicity as it relates to M/A activity.
Keywords
mergers and acquisitions of corporations
Rights
© The Author(s). Kelvin Smith Library provides access for non-commercial, personal, or research use only. All other use, including but not limited to commercial or scholarly reproductions, redistribution, publication or transmission, whether by electronic means or otherwise, without prior written permission is strictly prohibited.
Recommended Citation
Creasey, Todd, "Is "Culture Clash" in a Merger or Acquisition Well Modeled as a Managerial Prisoner's Dilemma?" (2005). Student Scholarship. 268.
https://commons.case.edu/studentworks/268