Two-way learning in west/east mergers & acquisitions : short term and long term viewpoints

This paper reviews the literature in the fields of learning, knowledge creation and storage in organisations and links the theories in these fields to mergers and acquisitions. Specifically, mergers and acquisitions (M&As) of East German ex-combines by western firms are examined from the viewpoint of - does the dominant culture always win or is it possible for two-way learning? The answer to these questions seems to depend upon the mode of acquisition, the level of acculturation and on the length of time elapsed. These three factors and others are combined into a model to predict potential results of M&As. The theory section is supported by data collected from six western M&As in East Germany where a total of 36 in-depth, open ended interviews were held.