The topic canvasses the effects of organizational culture on the M&A. This annotated bibliography is composed of research based, case study and literature reviewed articles, that all of them are recently published papers. Although in the aspect of mergers and acquisitions, organisational culture has various definition and encirclement (Riad, 2007), from recently introduced emotional intelligence (Harrison-Walker, 2008) to theoretical definitions (Schraeder & Self, 2003), and also there are some debates about the direction of its effects on M&A (Stahl & Voigt, 2008), but its influences on M&A are undeniable. (Stinchcomb & Ordaz, 2007) The most important effects of organisational culture on M&A could be summarised as goal and mission defining in mergers (Baughn & Finzel, 2009), being a source of power for organisations (Riad, 2005), affecting the performance of M&A (Teerikangas & Very, 2006), determining compatibility and merger fit (Yusuff, Busu, Rashid, & Zulkifli, 2009), affecting the economic value added (Horwitz, et al., 2002), and successfulness of mergers (Bijlsma-Frankema, 2001). It also has figured out that not only the existence and direction of the impacts of organizational culture, but how it affects the mergers is important (Teerikangas & Very, 2006). On the other hand, some articles focused more on mergers and acquisitions and how they influenced by organisational factors (DiGeorgio, 2002, 2003). Although the main issue in studying this topic is how the effects of organisational culture on M&A could be measured empirically (Viega, Lubatkin, Calori, & Very, 2000), it represented that most of the studied organisations have set the financial benefits and economics of scale as their main objectives for mergers (Horwitz, et al., 2002) and because of neglecting the cultural aspects in merger, they struggled culture clash after mergers (Badrtalei & Bates, 2007). It seems that organisational culture has broad consequences on operational aspects of the organisation such as quality (Ito, Tamiya, & Fujimura, 2009).
Conclusion This article has stated the effects the culture of organisations on M&A from various aspects. Most of the articles, using empirical evidences and literature reviews, showed the importance of considering the organizational culture in M&A, but there were a few organisations, both in public and private sectors, which took that into account in the merger process. Although the presented empirical evidences in the articles were from different sectors and countries, the consequences of disregarding cultural aspects in mergers and acquisitions, were the same. They suggested that managers must consider organisational behaviour and its related fields, as much as financial criteria to decide about mergers. Neglecting this suggestion has caused many unsuccessful M&A and culture clashes, regardless of the industry, sector, and country.
Organisational Culture and its Effects on M&A
Title and Reference of Article Type of Article Aim of Article
Horwitz, F. M., Anderssen, K., Bezuidenhout, A., Cohen, S., Kirsten, F., Mosoeunyane, K., et al. (2002). Due diligence neglected: managing human resources and organizational culture in mergers and acquisitions. South African Journal of Business Management, 33(1), 1. Scholarly Article - South Africa Academics - Research Base Recognising the necessary aspects of organisational culture and human resource customs for a successful and effective mergers and acquisitions. Sample Size: Five reputable companies in insurance, medical, steel, pharmaceutical and financial services sectors. Location: South Africa. The Method of Data Collection: Convenience sampling. The data have been gathered by using semi-structured interviews, focus groups, and documents of the companies. Instruments: pictures or visuals presented to group of people and a set of open-end questions. Analysis: The interviews and documents were analysed qualitatively to find contradictions and...
References: Group 22
Badrtalei, J., & Bates, D. L. (2007). Effect of organizational cultures on mergers and acquisitions: The case of daimler chrysler. International Journal of Management, 24(2), 303-317. Baughn, M. K., & Finzel, P. A. (2009). A clash of cultures in a merger of two acquisition project offices. Engineering Management Journal, 21(2), 11-17. Bijlsma-Frankema, K. (2001). On managing cultural integration and cultural change processes in mergers and acquisitions. Journal of European Industrial Training, 25(2-4), 192. DiGeorgio, R. M. (2002). Making mergers and acquisitions work: What we know and don 't know Part I. Journal of Change Management, 3(2), 134. DiGeorgio, R. M. (2003). Making mergers and acquisitions work: What we know and don 't know Part II. Journal of Change Management, 3(3), 259. Harrison-Walker, L. J. (2008). How emotional intelligence and spirituality impact job survivors in a post-M&A work environment. Journal of Organizational Culture, Communications and Conflict, 12(1), 1-23. Horwitz, F. M., Anderssen, K., Bezuidenhout, A., Cohen, S., Kirsten, F., Mosoeunyane, K., et al. (2002). Due diligence neglected: Managing human resources and organizational culture in mergers and acquisitions. South African Journal of Business Management, 33(1), 1. Ito, S., Tamiya, T., & Fujimura, S. (2009). Assimilation of Quality Culture and Its Effect - An Empirical Study of A Cross-Border M&A. Paper presented at the World Congress on Engineering and Computer Science, San Francisco, USA. Riad, S. (2005). The power of "organizational culture" as a discursive formation in merger integration. Organization Studies, 26(10), 1529-1554. Riad, S. (2007). Of mergers and cultures: "What happened to shared values and joint assumptions?". Journal of Organizational Change Management, 20(1), 26-43. Schraeder, M., & Self, D. R. (2003). Enhancing the success of mergers and acquisitions: An organizational culture perspective. Management Decision, 41(5), 511. Stahl, G. K., & Voigt, A. (2008). Do cultural differences matter in mergers and acquisitions? A tentative model and examination. Organization Science, 19(1), 160-176. Stinchcomb, J. B., & Ordaz, F. (2007). The integration of two "Brotherhoods" into one organizational culture: A psycho-social perspective on merging police and fire services. Public Organization Review, 7(2), 143-161. Teerikangas, S., & Very, P. (2006). The culture-performance relationship in M&A: From yes/no to how. British Journal of Management, 17, S31-S48. Viega, J., Lubatkin, M., Calori, R., & Very, P. (2000). Measuring organizational culture clashes: A two-nation post-hoc analysis of a cultural compatibility index. Human Relations, 53(4), 539557. Yusuff, R. M., Busu, A., Rashid, A., & Zulkifli, N. (2009). Influence of organisational culture on company performance. Journal of Achievements in Materials and Manufacturing Engineering, 31(2), 837-845.
Please join StudyMode to read the full document