The influence of organisational cultures on the integration of small businesses into corporate companies in South Africa

Abstract

Knilans (2009) states that the most important lever of successful integration of businesses in mergers apart from results is organisational culture. Organisational culture is the underlying values, the norms and patterns and assumptions that underpin organisational behaviour and the resultant meaning that emerges as shared amongst a group. This research investigated the influence of organisational culture on the successful integration of small businesses into corporate companies in South Africa. Executives, based on their experience of the acquisition and consequent integration process, were interviewed to determine the level of influence organisational culture has on integration. The results indicated that organisational culture has the most influence on the successful integration of acquisitions. Other influential factors were the integration strategy, due diligence process that should take cognisance of culture. Leadership was also seen as key variable that could drive these factors.