Factors Influencing Merger of Iranian Public Sector Organizations

Merger of state organizations is a kind of restructuring and an administrative reform strategy in Iran public sector which results in a new organization in the body of the government which has a great impact on organizational performances. The main concern of this research is the failure of merging of public sector organizations in Iran which requires its scientific review with managerial approach. This study aims at developing structural equation model for merger in Iranian public sector. In other words, in this study, we tried to identify factors affecting the successful merger of state organizations in Iran. Research methodology is applied in terms of purpose, and descriptive survey in terms of data collection. The statistical population of this study consists of 35 merger organizations in Iranian public sector. A sample size of 32 organizations were selected using Morgan table, and data associated with the variables of merger performance and factors influencing successful merging were gathered using a seven-point Likert scale survey questionnaire. The results of structural equation modeling using PLS method confirmed that the merging of state organizations in Iran has not been successful so far. In addition, there are some factors affecting successful merger of state organizations in Iran including “trust making and fairness”, “management of the differences”, “conflict and ambiguity”, and “knowledge management and integration”. The findings of this research can be implemented in policy making, and the proposed model is effective in promoting domestic knowledge in the field of merger.