The Effectiveness of Employee Retention and Organizational Culture Management on Post Merger Integration in Mergers and Acquisition - Case of Renault Samsung Motors -

In the past decade, many firms performed mergers and acquisitions. Many expected that through mergers and acquisitions both acquiring and acquired firms could improve their performance. However, in reality, the result had an adverse effect. Many people searched and found reasons for this failure and came to a conclusion that failure was mainly because of an unsuccessful post merger integration (PMI). Therefore, this paper's primary objective is to focus on specific issues for success in post merger integration (PMI). It also developed five propositions related to critical factors which are; employee retention (direct communication, incentive motive for compensation and benefit, and strong managed leadership) and culture management (effective open communication and modification and alteration of culture integration program). Renault Samsung case is used in this research because of its high level of success after a merger and acquisition. Also, this paper was explicitly focused on the period when Renault Motors had acquired Samsung Motors for the validity of Renault Samsung post merger integration (PMI) success.