What typically happens to companies with incompatible cultures after a merger?

Companies with incompatible cultures after a merger are likely to struggle or fail due to several reasons related to workforce dynamics and organizational coherence. When two organizations with distinct cultures attempt to operate under a unified structure, it can lead to confusion, frustration, and a lack of collaboration among employees.

Cultural incompatibility often manifests in differences in communication styles, decision-making processes, and overall company values. Employees may feel loyal to their original organizational culture, creating divisions and preventing effective teamwork. This discord can result in decreased employee morale, increased turnover, and resistance to change, ultimately hindering the merger's intended benefits.

Additionally, leadership may face challenges in integrating systems and practices, further complicating the transition. If the foundational elements of workplace culture do not align, the merged company may struggle to develop a cohesive strategy, innovate, and meet competitive challenges, thereby jeopardizing its chances for success in the market.

The other potential outcomes of thriving, dominating the market, or remaining unchanged do not reflect the complexities and realities of merging organizations with fundamentally different cultural foundations.