Merger and acquisition (M&A) activity continues to rise, despite evidence
that the majority of M&As fail to meet the financial and synergistic
expectations of shareholders or employees. Post-merger ‘cultural
clashes’ are often blamed for disappointing M&A outcomes, yet
little research exists to guide organizations through the difficult process of
cultural integration. In particular, the process of cultural leadership as an
important influence on merging organizational cultures and subcultures has been only
sporadically examined. Through an analysis of interviews with 42 post-merger
employees, this study qualitatively explores the construct of cultural leadership
(Trice & Beyer, 1991, 1993). The results advance the definition and
measurement of cultural leadership, bringing it out of the theoretical realm to
explore the key processes of creation, change, and integration that comprise
effective post-merger cultural leadership. These findings have important
implications for how organizations can anticipate post-merger cultural clashes and
tailor leadership programs to address their underlying roots, ultimately enhancing
merger success rates.
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