Agent-Based Modeling of Cultural Integration: A Post-Merger Framework for State-Owned Enterprises

Abstract

This study explores the cultural integration challenges Chinese state-owned enterprises (SOEs) face during the post-merger integration (PMI) process. Based on the NK fitness landscape, an active search model is developed to analyze the interaction among acculturation modes, management activities, and organizational preferences. This model captures the integration dynamics through four acculturation modes (integration, separation, assimilation, and reverse merger) and evaluates their performance under different interactive complexities. The results indicate that the assimilation mode favored by state-owned enterprises aligns well with their cultural preferences in the short term. However, this mode fails to maintain long-term adaptability and performance. Moreover, management activities significantly impact integration results, with experience dependence and coordination levels particularly significant in complex environments. These findings emphasize that SOEs must develop cultural strategies tailored to specific backgrounds, providing actionable insights for optimizing PMI processes. This study links theoretical modeling with practical applications, enhancing the understanding of cultural integration in organizational mergers.