Unveiling Company Culture Dynamics Through M&A Processes: A Case Study of Family Firms Acquired by Non-Family Firms

Family firms possess unique company cultures, which can undergo significant changes during merger and acquisition processes, potentially differing from those of non-family firms. These changes can significantly influence employee attitudes and behaviours, thereby impacting the organisation as a whole. This study investigates the perceived changes in company culture following the acquisition of a family firm by a non-family firm and explores their effects on employee attitudes and behaviours. It aims to address a gap in the current literature concerning the dynamics of company culture in family firms undergoing merger and acquisition processes. Semi-structured interviews were conducted with 16 employees of a family firm recently acquired by a non-family firm. The Gioia methodology was employed to analyse these interviews, identifying concepts, themes, and dimensions. Subsequently, a theoretical model and data structure were developed to explain the study's findings. This study discovered four aggregate dimensions, comprised of twelve second-order themes, and 29 first-order concepts. These dimensions, themes and concepts illustrate negative changes to company culture and the negative effects this is having on employee attitudes and behaviours.