Beyond the Transaction: Ownership, Culture, and Absorptive Capacity in Sustaining South Korean M&A
DOI:
https://doi.org/10.61656/sbamr.v8i3.482Keywords:
Mergers and Acquisitions, South Korea, Ownership Structure, Organizational Culture, Business Sustainability, Absorptive CapacityAbstract
Purpose: This research will explore the elements associated with business sustainability in M&A transactions in South Korea. There are five elements that are explored in this research which include ownership structure, organizational culture, target firm characteristics, post merger integration, and absorptive capacity. The Samsung Electronics takeover of Harman International serves as a case study for the purpose of investigating these elements and their relationship with business sustainability.
Method: Descriptive Qualitative Method is adopted in this study. The study will be done through 20 scientific references between 2016-2026 along with the secondary information collected from Samsung Electronics and Harman International. M&A and sustainable business issues would be derived from those references and then compared with Samsung-Harman merger.
Findings: The findings suggest that there are certain factors that are associated with business sustainability following M&A. There is a correlation between ownership structure, organizational culture, the features of the target company, post-merger integration, and absorptive capacity. In the case of the Samsung-Harman merger, the latter obtained the technological capabilities of the former, specifically the capability of developing products for cars. The target firm continued functioning as an independent business entity. Thus, it can be stated that the target firm should not necessarily be completely integrated into the acquiring organization. Some capabilities may remain within the company. However, financial data used in this research are not sufficiently representative to confirm the positive effect of the merger on the sustainability of business operations.
Implications: Firms that plan to carry out M&A should have in mind the future after M&A. Strategic fit, organizational culture, and integration are just some of the areas that firms should look into. Knowledge sharing is essential but the firm should retain capabilities that will be useful for the acquiring firm in the acquired firm. The long-term impacts of M&A can be gauged by financial performance, operational performance, and innovation.
Originality: In this study, five factors have been combined into one discussion. Generally, the five factors are discussed separately in M&A literature. The study makes a link between the five factors and business sustainability by taking Samsung Electronics and Harman International merger as an example.
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Copyright (c) 2026 Eka Widiyanti, Nanda Amelia Febrianti; Takeisha Prananingrum Prakoso; Achmad Dafa Naufal, Eriska Putri Fithrotul Ilma, Baeho Kim Wook
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