WHAT DRIVES MERGER AND ACQUISITION SUCCESS? A MULTILEVEL SYSTEMATIC LITERATURE REVIEW

Abstract

Mergers and acquisitions (M&A) are widely employed as strategic instruments to achieve growth, restructuring, and competitive advantage. Nevertheless, the persistent gap between expected synergies and realized post-merger performance suggests that M&A success is shaped by a complex and interdependent configuration of determinants rather than by financial considerations alone. This study systematically synthesizes the key determinants and causal mechanisms of M&A success through a Systematic Literature Review (SLR) of 60 peer-reviewed international journal articles published between 2020 and 2025. The review was conducted in accordance with the PRISMA 2020 guidelines and analyzed using thematic synthesis. The findings indicate that the determinants of M&A success can be organized into four interrelated clusters: (1) institutional environment, (2) corporate governance and managerial characteristics, (3) strategic fit and resource capabilities, and (4) post-merger integration and behavioral factors. These clusters operate through core mechanisms, including the quality of strategic decision-making, synergy realization and organizational learning, institutional legitimacy and uncertainty reduction, and the effectiveness of social and cultural integration. From a theoretical perspective, this study integrates Agency Theory, Upper Echelons Theory, the Resource-Based View, Dynamic Capabilities, Institutional Theory, and behavioral perspectives into a unified multilevel framework that conceptualizes M&A success as the outcome of interactions across macro-level institutional conditions, meso-level governance and strategic configurations, and micro-level integration processes and human dynamics. By adopting this multilevel perspective, the study advances the M&A literature beyond fragmented, single-level explanations and clarifies how structural contexts, organizational capabilities, and social processes jointly shape value creation. Practically, the findings suggest that sustainable M&A success depends not only on strategic and financial alignment but also on robust governance structures, adaptive organizational capabilities, and effective management of cultural and behavioral integration. The proposed conceptual framework offers a comprehensive foundation for scholars and practitioners to better understand and manage M&A as an integrated process of economic, organizational, and socio-cultural transformation.