Acculturation in a newly merged organization: How the implementation of an acculturation process assists individuals in adaptation to a merger

This action oriented research project was designed to determine how the implementation of an acculturation process assisted individuals in adaptation to an organizational merger. The evidence from the merger and acquisition activity of the 1980s generally resulted in negative results to shareholders of acquiring firms. There is overwhelming evidence that mergers and acquisitions do not improve profitability. Many studies show decreases in profitability at the line-of-business level (Sirower, 1997). Most studies estimate failure rates at 50%. Joint ventures and other forms of strategic alliances record failure and dissolution rates in the region of 40% (Gertsen, 1998). Employing a qualitative, action oriented research design I used Nahavandi and Malekzadeh's (1988) model of acculturation. I was interested in helping two newly merged organizations implement this model to determine how it assisted individuals in adaptation to the merger. Nahavandi and Malekzadeh's (1988) model focused on the process of adaptation and acculturation in mergers and acquisitions. They suggested that the degree of congruence between the acquirer and the acquired organizations' preferred modes of acculturation would affect the level of acculturative stress. This stress will either facilitate or hinder the implementation of the acquisition. This action oriented research design engaged employees as active participants with results that had practical outcomes related to their work lives. The research findings suggest that knowledge of Nahavandi and Malekzadeh's (1988) acculturation model was helpful. This model provided participants with a frame to view implementation of the merger. Additionally, modes of acculturation coexist and frequently shift suggesting that acculturation is a process and not an outcome. The thought that organizations become happily acculturated is erroneous. From an individual perspective the role of boundary spanner (one who can span organizational boundaries) is critical and tenuous. This poses implications for these individuals, as this role can be difficult and tiring. Overall there are a variety of obstacles to integration during organizational mergers. Positive outcomes and success are limited at best.