Although a number of scholars have asserted that PMI cultural integration leads high levels of performance, there have been few empirical studies in which the impact of PMI culture on corporate performance is tested in Korean post-merger firms. Furthe...
Although a number of scholars have asserted that PMI cultural integration leads high levels of performance, there have been few empirical studies in which the impact of PMI culture on corporate performance is tested in Korean post-merger firms. Furthermore, most empirical studies have related organizational culture to the psychological performance (such as organizational commitment and job satisfaction), but very few empirical studies have related that to corporate financial performance. This study investigates the effects of PMI strategic type and context and financial performance in Korean firms.
The PMI data were collected 52 firms from listed firms using a survey instrument based on the DART system. In addition, the financial performance data of the sample firms were collected from survey instrumen.
The results showed that the financial performance was positively related to four cultural types (holding, absrption, preserve, symbiotic), but was not significantly related to the cultural type. The environmental uncertainty and organizational structure was positively related to four cultural types (holding, absrption, preserve, symbiotic). The relationships between cultural PMI type and corporate financial performance were also less significant.