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Organizational culture and post-acquisition changes in management control systems: An analysis of a successful Brazilian case

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  • Jordão, Ricardo Vinícius Dias
  • Souza, Antônio Artur
  • Avelar, Ewerton Alex

Abstract

This paper analyzes the effect of organizational culture on the post-acquisition management control system (MCS) of the Brazilian company Extrativa Metalquímica Inc. after its acquisition by the FASA Participações Group. The results herein reported add to discussions of the subject and contribute to reducing the research gap in this area in Brazil. The analysis supports two major conclusions: (1) changes in the acquired company's MCS were derived from the new financial results-oriented culture introduced by the acquirer; and (2) the implementation of this culture implied modifications in production, financial and quality controls.

Suggested Citation

  • Jordão, Ricardo Vinícius Dias & Souza, Antônio Artur & Avelar, Ewerton Alex, 2014. "Organizational culture and post-acquisition changes in management control systems: An analysis of a successful Brazilian case," Journal of Business Research, Elsevier, vol. 67(4), pages 542-549.
    • Handle: RePEc:eee:jbrese:v:67:y:2014:i:4:p:542-549
    DOI: 10.1016/j.jbusres.2013.11.011
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    References listed on IDEAS

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    Cited by:

    1. Stefanie Einhorn & Bernhard Fietz & Thomas W. Guenther & Edeltraud Guenther, 2024. "The relationship of organizational culture with management control systems and environmental management control systems," Review of Managerial Science, Springer, vol. 18(8), pages 2321-2371, August.
    2. Hunt, Richard A., 2021. "Entrepreneurial orientation and the fate of corporate acquisitions," Journal of Business Research, Elsevier, vol. 122(C), pages 241-255.
    3. Zahoor, Nadia & Khan, Zaheer & Sinkovics, Rudolf R., 2022. "The Role of Emotions in Cross-Border Mergers & Acquisitions: A Systematic Review of the Inter-Disciplinary Literature and Future Research Agenda," Journal of International Management, Elsevier, vol. 28(4).
    4. Ibrahim Bader Alharbi & Rossilah Jamil & Nik Hasnaa Nik Mahmood & Awaluddin Mohamed Shaharoun, 2022. "Exploring the Relationships Between Organizational Culture, Management Control System and Organizational Innovation," Global Business Review, International Management Institute, vol. 23(3), pages 662-675, June.
    5. Muhammad Haseeb & Marcin Lis & Ilham Haouas & Leonardus WW Mihardjo, 2019. "The Mediating Role of Business Strategies between Management Control Systems Package and Firms Stability: Evidence from SMEs in Malaysia," Sustainability, MDPI, vol. 11(17), pages 1-20, August.
    6. Wei, Tian & Clegg, Jeremy, 2017. "Exploring sources of value destruction in international acquisitions: A synthesized theoretical lens," International Business Review, Elsevier, vol. 26(5), pages 927-941.
    7. Maria José Gomes & António Sousa & Jorge Novas & Ricardo Vinícius Dias Jordão, 2021. "Environmental Sustainability in Viticulture as a Balanced Scorecard Perspective of the Wine Industry: Evidence for the Portuguese Region of Alentejo," Sustainability, MDPI, vol. 13(18), pages 1-18, September.
    8. Jacobo Gomez-Conde & Ernesto Lopez-Valeiras & Fabricia Silva Rosa & Rogério João Lunkes, 2023. "The effect of management control systems in managing the unknown: Does the market appreciate the breadth of vision?," Review of Managerial Science, Springer, vol. 17(8), pages 2769-2795, November.

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