Organisational Culture in Innovative Small to Medium Sized Enterprises (SMEs) : Leadership’s Responsibilities when Implementing Change as a Result of M&As

Abstract: This study investigates what culturally related responsibilities leaders in innovative SMEs have when preparing employees prior to M&As in order to mitigate drawbacks due to culturally related discrepancies. The findings of this study especially confirm previous studies on culturally related difficulties in change management by emphasising the significant meaning of evaluating soft factors prior to change. The study was conducted by examining an innovative SME in the telecom industry that during 2009 embarked upon a major amendment of business by restructuring the company set up and relocate its headquarters to Singapore. The analysis is based on both existent studies in the field of organisational culture and change management, as well as on material obtained from qualitative research. This research consisted primarily of unstructured interviews and active participation is various company events and initiatives.  The subject is of great importance as M&As are an increasingly common feature of innovative companies' strategies in order to gain access to important knowledge and technologies. However, a great number of these initiatives fail, usually due to leaders inability to evaluate future prospects in relation to soft factors. The findings provide an in depth understanding of leaders significance prior to, and during change, in order to create cultural stability and predictability as a means of mitigating employee anxiety and ultimately reluctance to change.