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ABSTRACT
Various explanations have been suggested concerning the causes of 'cultural clashes' and prescriptions for harmoniously integrating the beliefs and values of merging firms. Using a form of meta-analysis known as a case survey design, which combines the ideographic richness of case studies with the statistical generalizability of larger samples, and a sample consisting of 50 mergers and acquisitions (23 US domestic, 15 Swedish domestic and 12 Swedish cross-border), we found that acculturation is best achieved when the buying firms rely on social controls. That is, by participating in such activities as introduction programs, training, cross-visits, retreats, celebrations and similar socialization rituals, employees will create, of their own volition, a joint organizational culture regardless of expectations of synergies, the relative organization size and differences in nationalities and cultures. A post hoc analysis of a proposed integration control typology further suggests that social controls also indirectly influence acculturation by acting in concert with formal integrative efforts.
KEYWORDS
acculturation * international case survey * mergers and acquisitions
Editor's note: This paper received the Carolyn Dexter Award as the Best International Paper submitted to the 2001 Academy of Management meetings.
Acculturation in mergers and acquisitions (M&As) is the outcome of a cooperative process whereby the beliefs, assumptions and values of two previously independent work forces form a jointly determined culture. Not surprisingly, achieving acculturation represents a major post-acquisition challenge to acquiring firms. It has been discussed in terms of personorganization fit (O'Reilly et al., 1991), social anthropology (Cartwright & Cooper, 1992, 1993a, 1993b; Nahavandi & Malekzadeh, 1988), relational demography (Jackson et al., 1991), the attraction-selection-attrition paradigm (Schneider, 1987), social movements (David, 1977), relative standing (Hambrick & Cannella, 1993) and national culture differences (Very et al., 1997; Weber et al., 1996). These complementary theories help to explain why people at the acquired unit often face considerable pressure to conform to the values and management practices of the buyer, why these pressures tend to be resisted and the consequences of that resistance (Haspeslagh & Jemison, 1991; Schweiger & Weber, 1989).
Often referred to as 'cultural clash,' resistance results in lower commitment and cooperation among acquired employees (Buono et al., 1985; Sales & Mirvis, 1984), greater turnover among acquired managers (Hambrick & Cannella, 1993; Lubatkin et al., 1999), a decline...