The Process of Cultural Integration in Post-Merger Organizations in Related M&A: A Case of Merger and Acquisition in Thailand
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Abstract
Mergers and acquisitions (M&A) have not only been a topic of interest among organizational researchers but also an interesting strategic option for firms to increase growth in many industries. However, few companies have successfully integrated after a merger. One of the key challenges is the integration of the corporate cultures of the combined companies. Research has addressed factors that enable or hinder successful cultural integration. However, little attention has been paid to unraveling a process of how success can be achieved. This paper focuses on examining a process of cultural integration in the implementation of related domestic M&A. In this paper, we drew on a qualitative single case study of the merger in Thailand between the two big companies, which represents a complex post-merger integration of organizational cultures. Building on the qualitative case study, we develop a process of cultural integration, which consists of three phases, including cultural contact, cultural conflict, and cultural co-creation. We also identify organizational actions required in each phase. By highlighting how cultural integration in related domestic M&A can be achieved, the study makes theoretical contributions to the literature of post-merger integration and practical implications for firms.
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