The effects of post-M&A cultural change in organizations on individual and organizational performance: Moderated by personality and political skill

With unremitting change and intense competition, nowadays companies in Turkey are increasingly turning to be users of M&A as a tool to grow, build synergy, attain local/global presence, enter into new sectors, or achieve economies of scale and scope. However, it is too bad that they are usually not very good at wielding this tool successfully. Previous research yielded that good management of change related with human side of M&As, particularly the culture factor, has deterministic role in achievement of post-M&A success. Based on this backdrop, the major aim of the current study is to examine the effects of post-M&A culture change on individual and organizational performance outcomes. The secondary aim of the study is to examine the moderating effect of personality and political skills on the relationship between post-M&A culture change and individual performance. Survey method was used to gather responses of a purposeful convenience sample of employees (N=154), which went through an M&A process. An organizational culture inventory (DOCS), a personality inventory (NEO), a political skills inventory, and questions assessing perceptions of employees about pre and post-M&A organizational and individual performance were used to gather data. The findings of this study indicate that the strength of organizational culture significantly changes after M&As. However only an insignificant difference is found between the self-ratings for individual performance before and after M&A. Perceptions of pre and post-M&A organizational performance are not significantly different, either. Among the five personality dimensions, in the pre-M&A period only openness dimension and in the post M&A period only extraversion dimension act as a moderators, and they interacts only with adaptability culture subtype. Political skills do not turn out to be a significant moderator. The results are discussed and suggestions for future research are made in the light of limitations of previous study.