The impact of distance on acquisition performance

A challenge in interpreting research is that the construct of 'distance' has multiple dimensions that influence acquisition performance. We expand Ghemawat's (2001) typology of distance with its dimensions of cultural, administrative, geographic, and economic distance (CAGE) from a review of 61 empirical research studies of how distance affects acquisition performance. We identify different impacts of distance dimensions on acquisition performance to find that distance dimensions are interdependent. As a result, context matters, when considering the impact of distance on acquisition performance. Supporting institutional theory, the direction of distance may matter, as the results may be different for acquirers in developed and emerging economies. Additional implications for research and management practice are identified.