Organisational culture : the effects of cultural differences during the integration process of mergers and acquisitions

Abstract

Mergers and acquisitions (M&As) are a source of business transformation solutions. The intended strategies behind M&As can include corporate growth, increase in market share, combined synergies, economies of scale, diversification and shared resources. Nevertheless, history shows that most of the time these combinations fail to reach the intended preliminary aims for various motives (Weber & Camerer, 2003). Research suggests that approximately fifty to seventy-five per cent of M&As fail to live up to expectations. The post-performance has been vastly researched whilst the post-integration process in relation to cultural differences has been the least investigated.