The (mis)measurement of M&A performance—A systematic narrative literature review

SummaryThis paper seeks to further the understanding of the variety of meanings M&A scholars attach to the label “M&A performance” by providing an alternative way to interpret the claimed inconsistency of M&A research findings. While many scholars contend that the problem stems from the multiplicity of M&A performance measures, we believe the problem rests in trying to compare different measures as if they were measuring the same feature of the organization. Through our narrative review of empirical research we analyze factors shaping the M&A – as well as the organizational – performance measurement process. The conclusion is that it is not possible to talk about M&A performance as if it was a universal construct.

► We provide an alternative understanding to M&A performance.
► Instead of understanding the inconsistent findings of M&A performance as a problem we suggest the problem lies in attempts to compare incomparable results.
► We conclude that it is not possible to talk about M&A performance as a universal construct.