Corporate Cultures Integration and Organizational Performance: A Conceptual Model on the Performance of Acquiring Companies

Mergers and Acquisitions (M&A) is one of the corporate strategies for companies to achieve better performance. However, it have been reported that many companies fail to meet the expected synergy value. Through an extensive review of related literatures and interview with key executives experienced with M&A, corporate cultures integration has been identified as a critical factor in success and failure of M&A exercises. A conceptual model was developed to describe its relationship with organizational performance. This research contributes to the existing literatures and the findings will be useful for top management to design the corporate cultures strategically for better performance.