Cultural dynamics in merger and acquisition (M&A): examining the strategic competencies- performance link in Pakistani manufacturing firms using PLS-SEM

Despite extensive research on Mergers and Acquisitions (M&A), few empirical studies integrate strategic management perspectives with organizational culture, particularly regarding the Moderating role of M&A culture in emerging markets. This study fills this research gap by investigating whether M&A Culture moderates the relationship between strategic M&A Competencies (function, learning, and capabilities) and M&A performance in Pakistan’s manufacturing sector. A sample of 237 managers from manufacturing companies that had recently engaged in M&As provided the data for this study through surveys; the data was analyzed using Structural Equation Modeling (PLS-SEM). The study found a statistically significant positive relationship between Strategic M&A Competencies and M&A Performance. Moreover, the study found that M&A Culture is a significant moderator that enhances the effect of strategic M&A competencies on M&A outcomes. Theoretically, this study combines cultural contingency theory and dynamic capability theory. Practically, the study provides guidance to managers to optimize their strategic competences in high-context cultural environments. This research is one of the first to provide empirical evidence from an emerging market context to address the institutional voids often ignored in western-centric M&A literature.