This paper presents an exploratory model to assess the impact of cultural compatibility in determining the success of a merger between two organisations. Mergers have been extensively researched for financial and operational compatibility. However, not many studies have focused on cultural compatibility as a determinant of success in mergers, though data suggests that one of the primary reasons for the high failure rates of mergers is cultural mismatch between the two merging organisations. This model has been developed by drawing inferences from existing literature and proposes a causal effect between cultural match and success of a merger. The cultural dynamics framework has been used to analyse four specific cases of Inter-Organis ational Relationships (IORs) for varying culture combinations. It is proposed that cultural compatibility would be directly related with success of the IOR and an IOR between incompatible cultures would be smooth if their respective modes of acculturation are on the path of least resistance. As the next step it is suggested that hypothesis may be drawn around this model to test it empirically.
|Journal||Vilakshan, XIMB Journal of Management|