Context Matters in M&As! Towards a Contextually Wise View of M&As

Mergers and acquisitions (M&A) vary considerably and are shaped by the context in which they occur. Regrettably, current research frequently treats context as a given. I employ a problematizing review to explore the concept of context in acquisition research, thereby illuminating its multifaceted connotations. My analysis reveals that while the majority of studies focus on M&As in context as primarily external, objective and static, there is an increasing recognition that M&As themselves should be regarded as a context, experienced by the actors involved and reconstructed through social interactions. Through this study, I offer three contributions. Firstly, I clarify how context has been mobilized in M&A research. Secondly, I disentangle the hidden assumptions in current research to lay the foundation for a research agenda towards a contextually wise approach to M&As. Thirdly, I respond to the recent call for a re-evaluation of the study of change and context by proposing the exploration of the dynamic interplay between M&As as and within the context they create.MAD statementThe acquisition research community commonly acknowledges the importance of context through the assertion that ‘no two acquisitions are alike’. However, context is frequently overlooked and regarded as static and largely objective, overlooking the potential contributions of context to the comprehension of mergers and acquisitions. From a managerial standpoint, an inadequate appreciation of the nuances in contextual conditions affecting mergers and acquisitions (M&As) hinders the ability to effectively handle these processes and learn from multiple acquisitions. The present study problematizes the notion of context in acquisition research, thereby disentangling different connotations of context and shedding new light on how to improve both research and practice of mergers and acquisitions.