Evaluation of the Post-merger Integration for Communication, Organization and Culture Capabilities: A Case from Policy Studies Institute Merger Project
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Date
2021-03
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Addis Ababa University
Abstract
The objective of this study was to examine the role of communication capabilities,
organizational capabilities and cultural integrating strategies and their effects on the
attainment of synergy value in the case of Policy Studies Institute (PSI). In order to
address this objective, the study employed both descriptive and explanatory research
method and took employees of the organization as primary data sources. The
appropriate firsthand information was collected through questionnaires. The study
employed census method and took the 73 employees working at PSI to fill out the
questionnaires. From the distributed questionnaires 68 questionnaires were filled and
returned. The collected data was analyzed using quantitative statistical tools. A
multiple regression was run to predict the effects of communication, organizational
capability and cultural integrating strategy during the merger have on realized
synergies. The study found out that out of the three, only two variables communication
and cultural integrating strategy has statistically significantly effect on realized
synergies. The highest contributing predictor was communication and the next was
cultural integrating strategy. The study recommended the development and use of
comprehensive and an inclusive communication practice can smoothen the merger
process. Moreover, the study suggested that a pre-merger evaluation of the potential
cultural differences between organizations going through a merger is important in
order to increase the synergy values attained at the post-merger.
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Keywords
communication capability, organizational capability, cultural integrating strategy, synergy value