A Study on the Mediating Effect of Post-Merger Integration (PMI) on Merger Stress, Leadership, and Performance: Focusing on Merged Public Institutions in Korea

Abstract

This study reviews the relationships between merger stress, leadership, post-merger integration (PMI), and performance by focusing on the mediating effect of PMI using survey data of merged public institutions. The study analyzes whether the stress during a merger or the leadership in merged organizations have statistically significant impacts on PMI and the performance of merged organizations, and whether PMI significantly mediates merger stress and leadership with performance. The results indicate that merger stress had a statistically significant negative impact on PMI and the performance of the merged organizations. Conversely, the leadership of merged organizations had a statistically significant positive impact on PMI and the performance of the merged organizations. Furthermore, PMI showed a significant negative mediating effect on the relationship between merger stress and performance, while it showed a significant positive mediating effect in the relationship between leadership and performance.