Abstract

This paper aims to examine the relationship between the principles of Confucianism, especially the
‘Family-system’ and Post Merger Syndrome (henceforth PMS). This research is a cross-cultural study and
examines whether the Family-system principle leads to lack of communication between the target and acquiring
Company. It is an empirical study in which data were collected from two major Korean banks that were acquired
by Western companies. In the research, it was confirmed that “emphasis on Harmony in the target company,”
“Loyalty to the original superior,” and “Trust between the target company members” strongly enhance PMS.
Some limitations, however, like the conversion of culture and bi-cultural continuum were observed. Despite such
limitations, this research considerably provides a new approach in cross-cultural studies which focus not only on
the positive aspects of Confucianism principles, but also on their dark sides. Moreover, this paper scrutinizes the
Family-system-principles and examines which of the principles lead to PMS.

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