The effects of information systems integration and organizational culture on a firm's effectiveness

Though the relationship between the investment in information systems (IS) and a firm's performance continues to be important; conclusive evidence that information technology (IT) contributes to a firm's effectiveness is rare. This study tests the relationship between the integration of IS during mergers and acquisitions and their effectiveness. The findings point to a positive relationship between IS integration and effectiveness only when controlling for (a) IT intensity, and (b) organizational culture differences between the joining firms. Thus, managers are advised to take into account IT intensity and cultural differences during the pre-merger negotiations and during the post-merger integration process.