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How CEOs influence organizational culture following acquisitions

Corrinne S. Shearer (District Activities Director, Carefree Senior Living, Las Vegas, Nevada, USA)
David S. Hames (Associate Professor, College of Business, University of Nevada, Las Vegas, USA)
Janet B. Runge (Assistant Professor, College of Business, University of Nevada, Las Vegas, USA)

Leadership & Organization Development Journal

ISSN: 0143-7739

Article publication date: 1 May 2001

5087

Abstract

Research has demonstrated that mergers and acquisitions often fail, in significant part because companies fail to effectively integrate their diverse organizational cultures. This case study provides an in‐depth description of one company’s organizational culture just prior to being acquired, and demonstrates how it began to change almost immediately following the acquisition. The new CEO affected the acquired company’s culture directly by changing roles, responsibilities, policies, procedures, and practices. He affected it indirectly through his influence on other organizational members. Suggestions for effectively managing the integration of diverse organizational cultures following an acquisition are discussed.

Keywords

Citation

Shearer, C.S., Hames, D.S. and Runge, J.B. (2001), "How CEOs influence organizational culture following acquisitions", Leadership & Organization Development Journal, Vol. 22 No. 3, pp. 105-113. https://doi.org/10.1108/01437730110389256

Publisher

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MCB UP Ltd

Copyright © 2001, MCB UP Limited

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