The Effects and Management of Cultural Differences During the Integration Process of Mergers and Acquisitions

Abstract

This qualitative research study investigates how cultural differences were tackled during two mergers and two acquisitions and the result that this had on employees and the smooth running of the organizations. Data derives from a sample of nine employees who experienced a merger or an acquisition during the previous five years. The results indicate that in two acquisitions and one merger, insufficient instrumental communication prevented a successful integration process leading to low synergy realization. Organizational culture gaps were also identified. On the other hand, one merger experienced a successful integration process which was supported by well-planned strategies combined with constant communication with all stakeholders. This study indicates that failure to manage cultural differences during mergers and acquisitions may result in flaws that slow down and threaten the integration process.