Despite decades of research, the key factors for success in Mergers and Acquisitions (M&A) and the reasons why M&As often fail remain poorly understood. The major reasons identified for this low performance include unskilled execution and incompatible cultures. However, many companies involved have only been evaluated based on their compatibility regarding financial figures and technical aspects, lack of research focused on the people issues. In view of this, there is a need to investigate the influence of human resource management (HRM) practices and corporate cultures integration, focusing on the improvement of company performance. A conceptual model is developed to investigate the influence of HRM practices dimensions (skill-enhancing, motivation-enhancing and opportunity-enhancing practices) on the company performance by examining the mediating effect of corporate cultures integration in post-M&A phase. Based on the variables engaged, it is argued that HRM practices and corporate cultures integration are the most important element to be well integrated in the M&A process specifically in post phase in order to improve organizational performance. The paper is limited to a study that may have further implication for research by using a model to investigate the importance of HRM practices and corporate cultures integration in M&A context. The expected findings are interesting from both theoretical and practical perspectives. Theoretically, the present study contributes to the new knowledge by examining the three primary dimensions of HRM practices instead of testing it individually. Thus, it allows greater understanding of the effect of each dimension. Practically, it helps the practitioners to identify several practices that could be adopted and invested more in enhancing their HRM practices within a strategic condition.

Keywords: Mergers and Acquisitions (M&A), Human Resource Management (HRM), Corporate Cultures Integration, Performance, Acquiring Companies