Mergers and acquisitions (M&As) are becoming a strategy of choice for organizations attempting to maintain a competitive advantage. Corporations spend billions of dollars annually in pursuit of this strategy; the success rate, however, is less than commendable. Research offers a number of potential determinants for this success rate. Receiving increased attention and research, organizational culture is one factor identified as a potential catalyst to M&A success. This article reviews related literature to identify some underlying reasons why organizational culture is an important factor in regard to the success rate of M&As. Specific emphasis is placed on cultural implications to consider prior to the merger or acquisition (event) and implications to consider subsequent to the event. Strategic alternatives suggested by researchers in organizational change, organizational strategy, and organizational development/ management research are also synthesized in an attempt to offer a comprehensive perspective on ways that organizations might improve the success rate of M&As.
Using data from 467 members of a large firm in the United States, this paper found that perceived work‐group support is a distinct construct from perceived organizational support. To reinforce the uniqueness of the constructs, the work‐group and organizational support constructs exhibited meaningful, differential relationships with six of eight variables reflecting different levels of exchange relationships and commitments. The implications of these findings are discussed.
PurposeDespite a significant amount of academic research showing that failure to create and manage readiness for change, nonetheless, far too many organizational managers have failed to learn both from their past mistakes and from the research. This paper aims to provide a brief review of five important elements necessary to build readiness in an organization when it is faced with change. By successful application of the five elements, readiness for the change may be created and managed leading to a prevention or minimization of resistance to the change.Design/methodology/approachThe paper presents a general review of one approach to managing change.FindingsThe paper finds that by addressing each of the five elements, there will be a greater likelihood of successful change introduction and management.Originality/valueThe paper provides overview of the five elements of readiness for managing change as created by Armenakis et al.
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