This study examines the impact of corporate political strategies (CPS) on mergers and acquisitions (M&A) outcomes, emphasizing their evolution, trends, and managerial influences. It investigates how CPS drives firm expansion, technological acquisition, and revenue growth while assessing top management’s role in selecting and implementing these strategies. This understanding is vital for refining corporate strategies that balance market and nonmarket forces.
This study employs a systematic literature review methodology using the Context-Intervention-Mechanism-Outcome (CIMO) framework. By synthesizing findings from academic sources, the review maps CPS’s evolution, managerial influences, and effectiveness in shaping M&A outcomes across global markets.
The review finds that CPS positively impacts M&A outcomes by easing regulatory approvals and improving post-acquisition performance. However, its effectiveness depends on factors like legal frameworks and ownership structures. Risks include prolonged deal reviews and over-reliance on political connections, leading to suboptimal decisions and reputational damage. Managerial behaviors significantly influence CPS success, and strategies have become more adaptive. Future trends point to increasing use of predictive technologies to manage risks in M&A.
This study systematically reviews the evolving role of CPS in M&A transactions, incorporating managerial behavior and institutional context. Integrating the CIMO framework and examining the interplay between CPS and managerial traits, it offers a novel perspective on how firms strategize within political environments during M&A.
