The purpose of this paper is twofold: first, to examine the impact of organizational culture differences on post-acquisition performance, and second, to provide deeper understanding of the mechanisms through which the impact occurs introducing into the analysis the mediating effect of employee attitudes.
The sample is based on domestic and international acquisitions in Serbia carried out during the period 2002-2011. Linear regression models were fitted according to Baron and Kenny procedures for mediation analysis. Statistical significance of the indirect or mediated effect is calculated by using the bootstrap test.
The results show that organizational culture differences positively impact post-acquisition performance. Moreover, employee attitudes are found to be a partial mediator of the relationship between culture differences and post-acquisition performance.
The presented results are especially useful for managers involved in the processes of acquisitions indicating that culture differences, if properly understood and managed, can be a source of value creation. Further, the results of the analysis indicate that managers must monitor and evaluate employee attitudes towards changes and help employees to face the challenges of change, thereby contributing the improvement of post-acquisition performance.
Previous research of organizational culture differences in transitional economies is limited, and this study is the first empirical investigation of the impact of organizational culture differences on post-acquisition performance in Serbia. This paper aids researchers and practitioners to identify the specific cultural challenges in the context of transitional economies.
Savović, S. (2017), "Organizational culture differences and post-acquisition performance: The mediating role of employee attitudes", Leadership & Organization Development Journal, Vol. 38 No. 5, pp. 719-741. https://doi.org/10.1108/LODJ-02-2016-0043
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