Changes in Patterns of Organizational Values Following Mergers and Acquisitions

Appalachian State University, Boone NC

Investigators

Abstract

Abstract Proposal Number: SES 00-80559 Principal Investigator: Joseph Daly This project addresses the impact of differences in organizational culture and values of top managers upon mergers and acquisitions (M&A) outcomes. While organizational culture and differences in values are frequently cited as the cause of M&A difficulties, few empirical studies have investigated the impact of such differences on value patterns in the new organization, or on its financial performance. An important barrier to such studies has been the difficulty of obtaining a sufficiently large sample to permit effective analysis. Using a theory developed by one of the researchers, organizations will be categorized into four organizational value profiles, based on values that center around the organization's reward system. Computer-Aided Text analysis (CATA) of organizations' annual reports will be used to provide a quantitative measure of nine values that define an organization's value profile. A second objective of the study is to extend current theory regarding acculturation following a merger or acquisition, addressing questions of uniculturalism in the resultant firm, as assessed by cultural consistency.