Enablers and inhibitors of cultural integration during M&A phases

Abstract

As organisations continue to search for growth and expansion in new markets Mergers and Acquisitions (M&As) will continue to be a strategic tool to achieve those goals. However, if organisations fail to integrate the culture through the three M&A phases they may not realise the opportunities and synergies that the M&A had envisioned. The phases are Pre-Merger phase, Legal Combination phase and the Post-Acquisition phase. This qualitative study, which takes a grounded theory approach, researched five large and diverse organisations and proposes a theoretical framework that indicates the enablers and inhibitors to cultural integration through the three phases of the M&A. The study presents key findings that will enable future researchers to explore how organisations can begin their M&A process with culture as a prominent feature that unlocks potential in achieving improved performance in a M&A. The theoretical framework provides new insights on the importance of culture, communication, adaptability, strategy and culture working together rather than in opposition, task and human integration, change management, the role of leaders and issues of justice across the three stages of a M&A. The study further identifies the enablers and inhibitors within each of these themes that will lead to cultural integration. The framework is simplistic in its approach seek to open opportunities for further research in cultural integration across the phases of a M&A.