| Recent merger waves in most organizations fail to increase organizational performance and sustain competitive advantage. Several U.S. organizational mergers failed to sustain market competition and retain employees. Most consolidated and merged banks in Nigeria are in distress and have failed to increase organizational performance. Currently, organizational leaders are facing challenges regarding how to integrate two or more merged cultures to maintain employee commitment, job satisfaction, and employee retention. The current quantitative correlational and regression study collected data related to a merged bank in Abuja, Federal Capital Territory (FCT) of Nigeria to examine if a relationship existed between organizational culture and organizational performance. The study results indicated that a measure of the combination of cultural traits (mission, involvement, consistency, and adaptability) had a significant relationship with each of the organizational performance measures (employee commitment, job satisfaction, and employee retention). Findings from the study revealed that a lack of cultural integration during a merger and acquisition was related to merger failure and decrease in organizational performance. Merger failures were linked to inadequate employee commitment, reduction in job satisfaction, and increase in employee turnover that indicate lower organizational performance. The study implication is that organizational cultural differences may hinder organizational performance. The study extends the organizational culture, leadership, and organizational performance academic discourse and expands the research domain to include a merged Nigerian bank in a developing country. |
