Managing Organizational Culture Integration Post-Acquisition: Lessons from PT 'X' in the Oil and Gas Sector

Abstract

In the upstream oil and gas industry, mergers and acquisitions (M&A) are often used to enhance access to limited resources and improve competitiveness in the global market. However, a major challenge arises in post-acquisition organizational cultural integration, which can impede the success of this process. At PT "X," the acquisition of PT "Y" and PT "Z" highlighted a cultural gap between a company oriented towards familial values and companies with more professional and structured cultures. Although numerous studies have addressed the importance of cultural integration in M&A, few have delved deeply into cases in Indonesia's oil and gas sector. This research employs a qualitative descriptive methodology with a Soft System Methodology (SSM) approach. The findings reveal that cultural differences, particularly in communication styles and work systems, led to tensions and decreased performance. The study further indicates that the lack of cultural assessment in the early stages of the acquisition exacerbated these issues. The research implications underscore the need for a more systematic and planned cultural integration strategy to ensure post-acquisition success.