Organizational Culture in Mergers and Acquisitions

Abstract

Mergers are a very important aspect of corporate growth. But so many mergers fail to achieve their aim. A lot of mergers won’t produce value for the acquiring firms. Evidence and surveys have shown that corporate culture is very important for the success of mergers and acquisitions. This evidence also points to the fact that cultural differences are a very important factor that could lead to failures in mergers. Currently there is not much empirical evidence or theory on the importance of cultural differences for the performance of mergers and acquisitions. Though, there is a growing rate of interest in this area.