Effects of culture on outcome of mergers and acquisitions - Sun and Oracle case study. (3rd November 2022)

• Record Type: Journal Article
• Authors: Singh, Virender; Maheshwari, G.C.; Yadav, Rajan
• Is Part Of: International journal of cultural management. Volume 1:Number 2(2022)
• Page Start: 114
• Page End: 145
• Publication Date: 2022-11-03
• Subjects: merger and acquisition -- takeover -- culture -- PMI and turnover
• Languages: English
• ISSNs: 1756-5669

Abstract

This study investigates the obstacles faced by companies in their post-acquisition integration processes by examining the case of Sun Microsystems' acquisition by Oracle. We study the hindrances created by organisational cultural differences, diversity of strategic and management decisions, and structural competencies of both the firms and how all these factors decide the fate of an M&A. This study lays particular emphasis on the cultural and human aspects of M&As, reviews how companies like Oracle can resolve the complexities associated with M&A post-acquisition acculturation processes to maximise desired synergies from acquisitions. The results suggest that transparent two-way communication and effective management in the aftermath of the merger, among other factors, are instrumental to the success of an M&A.