Kauenhofen_Photo Jason Kauenhofen

Originally from Winnipeg, Manitoba, Jason is a member of the Canadian Armed Forces that is stationed at the Canadian Army HQ Ottawa. Jason holds a technical diploma, a Bachelor of Engineering, a Master of Business Administration, and few other technical designations. His research interests are centered around cultural integration in Mergers and Acquisitions (M&A), International Joint Ventures (IJV), and other temporal phenomena. He is seeking open to collaborations and is seeking dissertation supervisor.


Title: Cultural Integration Modelling: Frictional facets as antecedents to predicting organizational integration

Abstract: Companies invest trillions of dollars into Mergers and Acquisitions (M&As). Despite high failure rates, finance and strategy-based analysis guide these activities to unpredictable results. M&A socio-cultural analysis provides cultural facets such as cultural distance (national and organizational), geographic distance, power distance, and organization size that impact the probability of M&A transaction success. Can cultural integration friction be modelled to inform strategic management activities and improve the probability of integration success? Since organizational culture is represented in all operating processes, M&A transactions disrupt culture and reduce performance. Strategists see the performance drag as an M&A failure. From another perspective, the performance drag represents a cultural re-alignment amongst the workers. Since workers are expending effort to complete the cultural adaptations, the difference between pre-merger and post-merger productivity becomes a measure of integration effort.
This research will analyze changes in organizations’ balanced scorecard performance pre-merger from a positivistic standpoint. Then compare the balance score cards at set intervals while the organizations undergo post-merger integration. Once the data is collected, the changing performance data will be modelled in contrast with the cultural facets to determine which facets most impact post-merger performance. The model could anticipate cultural friction and estimate the integration effort if successful. Strategic Managers could better cost and allocate management capacity to address friction, minimize the integration effort, and hasten the realization of the benefits initially conceived in the M&A transaction.

 


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