How CEOs influence organizational culture following acquisitions

Abstract

Research has demonstrated that mergers and acquisitions often fail, in significant part because companies fail to effectively integrate their diverse organizational cultures. This case study provides an in‐depth description of one company’s organizational culture just prior to being acquired, and demonstrates how it began to change almost immediately following the acquisition. The new CEO affected the acquired company’s culture directly by changing roles, responsibilities, policies, procedures, and practices. He affected it indirectly through his influence on other organizational members. Suggestions for effectively managing the integration of diverse organizational cultures following an acquisition are discussed.