Managing cultural integration in Nigerian mergers and acquisitions (M&As): An exploratory investigation

Abstract

This study explores how mergers and acquisitions (M&As) are carried out in Nigeria, specifically focusing on the cultural integration processes. It has been found that despite the increasing prevalence of M&As in Nigeria's business landscape, there has not been equivalent growth in literature and understanding of the process. To address this gap, this research conducted a multi-industry analysis reviewing 4 case studies. Using a qualitative case study approach guided by Cultural Web and the Resource-Based View theories, the study collected data through semi-structured interviews with 24 employees at various organizational levels. The results revealed a spectrum of approaches to cultural integration, ranging from minimal consideration to deliberate cultural blending attempts. Key findings include: (1) M&As in Nigeria are primarily driven by strategic as well as regulatory motivations; (2) cultural integration approaches are influenced by strategic motivations, power dynamics, regulatory influence and the leadership's cultural intelligence; (3) common challenges include cultural clashes, employee resistance, communication issues, and operational differences; (4) regulatory influence significantly shapes M&A processes, particularly in the banking sector; and (5) successful cultural integration could correlate with the degree of cultural due diligence conducted. The study therefore makes significant theoretical contributions by contextualizing and extending the RBV as well as Cultural Web theories within Nigeria’s unique business environment as well as bridging the gap between strategic management and organisational behaviour schools of thought. In terms of practice, the study also provides valuable insights for M&A practitioners leading to a comprehensive strategic framework proposed to guide future M&A processes not only in Nigeria but similar emerging market contexts.

Date of Award	2025
Original language	English