Organizational Culture in Bank Mergers & Acquisitions
Published: 2009
Author(s) Name: Hema Bajaj
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Abstract
The author examines the important
role played by cultural factors in
mergers and acquisitions. Analyzing
the case of acquisition of one
bank by another, it examines the
cultural issues that had the potential
to arise when two alien cultures
came together after commencement
of the integration process. It was
found that similarities/dissimilarities
between two cultures were not
analyzed before the decision to acquire
was taken. The study also
found that as the two banks had
very different cultures and needed
high degree of integration, threat
of cultural conflict was very high.
It was however prevented by the
management of the acquirer by following
a proactive acculturation
strategy
Keywords : Mergers and acquisitions, cultural conflict
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