The assessment of organizational culture in government agency mergers - a case study of the establishment of the Swedish Council for Higher Education

Sammanfattning: The last two decades have witnessed many mergers between Swedish government agencies. Within the private sector, organizational culture has gradually become recognized as an important factor in mergers and acquisitions (M&As). The New Public Management (NPM) concept reflects the tendency of corporate influences upon public administration. Theoretical uncertainty and limited previous research lead to the thesis' aim of answering the interrelated research questions: How is organizational culture addressed in government agency mergers? and What can explain the degree of cultural consideration? A literature review revealed that most corporate M&As fail. There are indications that mergers between governmental agencies might experience similar challenges. A theoretical framework was generated, including a multifaceted definition of organizational culture and three public administration perspectives: the bureaucratic perspective, the marketization NPM perspective, and the managerial NPM perspective. The theoretical framework generated explorative hypotheses, enabling further analysis. Based upon a qualitative methodology, a single case study of the recent government agency merger resulting in the establishment of the Swedish Council for Higher Education was conducted. It contained ten semi-structured interviews and complementary analysis of secondary data sources. The chosen single case method is suitable for explorative analysis, but suffers from limited external validity. Data identified cultural differences between the merging agencies. However, during the decision stage, neither the Government's decision criteria nor its directives included cultural concerns. The due diligence stage only gave organizational culture a minor recognition. The preparation stage did however prioritize culture, using several company-influenced measures. Analysis indicated that bureaucratic features reduced the cultural assessments during the decision and due diligence stages. The high cultural concern during the preparation stage reflected a managerial NPM perspective. A conclusion was that practical and theoretical factors within government do influence the degree of cultural consideration. Explanatory factors included bureaucratic directives and perceptions of the governmental agencies, a framing effect, varying incentives throughout the merger process, ideological differences across the ministries, and the Swedish constitution's protection for the agencies' operative independence. Limited external validity represents the thesis' most significant limitation. Comparative case studies could benefit future research. The recommendation for the Government to consider a more systematic assessment of organizational culture in mergers among its agencies represents a potential managerial implication of the thesis' findings.