Acquisitions, Organizational Culture and Performance: Empirical Evidence from Acquired Company in Serbia

  • Slađana Savović University of Kragujevac, Faculty of Economics, Serbia
  • Jelena Nikolić University of Kragujevac, Faculty of Economics, Serbia
  • Dejana Zlatanović University of Kragujevac, Faculty of Economics, Serbia

Abstract

Research question: The purpose of this paper is twofold: first, to examine the effects of acquisitions on organizational culture in terms of the degree of change in certain organizational culture dimensions, and second, to examine effects of organizational culture differences on the acquired company’s performance. Motivation: Although many studies have examined the relationships among acquisitions, organizational culture and performance, especially the relationship between organizational culture differences and company performance in developed economies (Chatterjee et al., 1992; Weber & Camerer, 2003; Krishnan et al., 1997), little attention has been paid to the research into these relationships in the emerging economies. Understanding the cultural issues in the context of acquisition in the emerging economy will contribute to the literature and enable comparison of research results with results obtained in developed economies. Idea: The core idea of this paper was to empirically evaluate the relationship among acquisitions, organizational culture and performance on the example of an acquired company in the Republic of Serbia, as the emerging economy. The paper focuses on exploring the employees' perceptions of organizational culture change in the period after the acquisition, as well as managers’ perceptions of the acquired company’s performance. Data: The survey was conducted in the company operating in the Republic of Serbia which was the subject of cross-border acquisition. The sample consists of 344 respondents (managers and employees) from the acquired company. Tools: Descriptive statistical analysis, Mann-Whitney U-test and regression analysis were applied in the study. Findings: The results of the research demonstrate that innovation as a dimension of organizational culture has changed to a greatest extent. Further, the results show that there are no statistically significant differences in the ways of how managers and employees perceive changes in organizational culture. Additionally, the results of the research show that organizational cultural differences have a positive influence on performance of the acquired company. Contribution: This paper contributes to a better understanding of the significance of organizational culture changes in an acquired company in the emerging economy and formulates practical suggestions for the managers in future acquisitions.

Author Biographies

Slađana Savović, University of Kragujevac, Faculty of Economics, Serbia

Slađana Savović is an Associate Professor at the Faculty of Economics, University of Kragujevac, Serbia. She holds a MS and a PhD from the Faculty of Economics at the University of Kragujevac. The main areas of her research interests are mergers and acquisitions, change management and acquisition performance. Her research papers are published in journals such as Journal of Organizational Change Management, Leadership and Organizational Development Journal, International Journal of

Productivity and Performance Management, Economic Annals, and others. She has been involved in research projects financed by the European Union, the Serbian government, and Faculty of Economics, University of Kragujevac.

Jelena Nikolić, University of Kragujevac, Faculty of Economics, Serbia

Jelena Nikolić is an Associate Professor on the following subjects: Introduction to Management, Business Decision Making, Corporate Governance and Business Negotiation, at the Faculty of Economics, University of Kragujevac, Republic of Serbia. She earned her PhD degree from the University of Kragujevac, Faculty of Economics. Her research focus is on strategic decision making, corporate governance and corporate entrepreneurship. She is the author/co-author of numerous scientific papers and monograph chapters.

Dejana Zlatanović, University of Kragujevac, Faculty of Economics, Serbia

Dejana Zlatanović is an Associate Professor in the field of management and business administration teaching the subjects of Innovation Management, Management Science, Business Negotiation and New Product Development at the Faculty of Economics, University of Kragujevac, the Republic of Serbia, where she earned her PhD degree (in 2015). Her research interest is focused on innovation management, systems approaches to management, business negotiation, innovativeness in higher education and corporate social responsibility. She has published about 50 papers in scientific journals and conference proceedings, as well as several chapters in the books.

Published
2021-02-25
How to Cite
Savović, S., Nikolić, J., & Zlatanović, D. (2021). Acquisitions, Organizational Culture and Performance: Empirical Evidence from Acquired Company in Serbia. Management:Journal Of Sustainable Business And Management Solutions In Emerging Economies, . doi:10.7595/management.fon.2021.0007
Section
Articles