Mergers and acquisitions (M&A) have gained increasing importance in the business community. However, 50-80% of all M&A fail due to unintended problems, such as cultural problems in the organisation. It results from the fact that most companies are focusing on strategic factors with economic synergies as a result, and not focusing enough on cultural factors. The purpose of this thesis is twofold. Firstly, to direct the Danish business world’s attention to the importance of cultural factors in connection with M&A. Secondly, to test the hypothesis, that Danish companies fail sociocultural integration and thereby M&A because they, without knowing it, take one cultural approach instead of two in their integration process following M&A. The objective of the study is thereby to prepare the ground for new and even bigger research in the field, so that it is possible to explain the business community why M&As fail at a later time. The empirical basis for the thesis is eight case studies from different Danish organisations that have merged recently. They were each interviewed about their experience with sociocultural integration during their integration process following M&A. These empirical data were put into the context of theories such as the functionalistic and symbolic approach to culture in the theoretical field of organisational culture. The analysis of the empirical findings showed that four cases had a functionalistic approach to culture, and that the rest of the cases had both a functionalistic and symbolic approach to culture in their sociocultural integration. The analysis also showed that the cases with the functionalistic approach to culture were failing their sociocultural integration, whereas the cases with both the functionalistic and symbolic approach to culture were having a successful sociocultural integration. It fits in with Schultz and Hatch’s theory regarding the use of both the functionalistic and symbolic approach to culture at the same time. It is due to two factors. Firstly, the functionalistic approach to culture is excellent to promote change in organisational culture and secondly, the symbolic approach to culture is exceptional to refine organisational culture so that employees understand the purpose of merger too. Based on these findings, it is not possible to verify the hypothesis completely because the thesis’ method was unsatisfactory as regard to a final conclusion. However, the analysis gives indications towards the use of both the functionalistic and symbolic approach to culture at the same time in order to get a successful sociocultural integration and thereby a successful M&A. The conclusion fits well with the purpose of the thesis because the purpose was not to explain why M&A fail, but to prepare the ground for new and even bigger research in the field so that it is possible to explain the business community why M&As fail at a later time.
|Educations||MA in International Business Communication (Intercultural Marketing), (Graduate Programme) Final Thesis|
|Number of pages||84|