Enhancing the success of mergers and acquisitions: an organizational culture perspective

Mergers and acquisitions (M&As) are becoming a strategy of choice for organizations attempting to maintain a competitive advantage. Corporations spend billions of dollars annually in pursuit of this strategy; the success rate, however, is less than commendable. Research offers a number of potential determinants for this success rate. Receiving increased attention and research, organizational culture is one factor identified as a potential catalyst to M&A success. This article reviews related literature to identify some underlying reasons why organizational culture is an important factor in regard to the success rate of M&As. Specific emphasis is placed on cultural implications to consider prior to the merger or acquisition (event) and implications to consider subsequent to the event. Strategic alternatives suggested by researchers in organizational change, organizational strategy, and organizational development/ management research are also synthesized in an attempt to offer a comprehensive perspective on ways that organizations might improve the success rate of M&As.