Predictors of Change in Postmerger Identification During a Merger Process: A Longitudinal Study
Abstract
Adopting an intergroup perspective, the authors examined predictors of change in postmerger identification throughout a merger. Data were collected over 3 points of measurement from 157 students of a newly merged university. The 1st questionnaire was distributed 4 months after the implementation of the merger; the following 2 were distributed 6 months and 1 year thereafter. With its longitudinal design, this study replicates and extends past results by revealing predictors of change in organizational identification for members of the dominant and subordinate organizations throughout a merger process. As predicted, postmerger identification increased only slowly for members of both the dominant and the subordinate organizations. Multilevel models for change confirmed that the predictive effect of premerger identification on postmerger identification for members of the dominant organization dissipates over time. The effect of in-group typicality unexpectedly varied as a function of organizational membership and was stable over time. Perceived fairness in the merger process positively influenced postmerger identification across members of both organizations; over time the effect of fairness amplified.
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- "Whereas we propose an overall positive effect of occupational identification on employees' willingness to cooperate in the integration process, this expectation can be refined in several ways. First, post-merger integration processes change over time (Gleibs, Mummendy, & Noack, 2008; Haspeslagh & Jemison, 1991; Seo & Hill, 2005), and this is likely to influence the role of occupational identification. Post-merger integration often involves alteration of the value chain (Pablo, 1994 ), which is effected through interventions such as transfer of management systems, redeployment of assets, integration of product lines, integration of technologies, and rationalization of plant and equipment allocation (Shrivastava, 1986). "
[Show abstract] [Hide abstract] ABSTRACT: Integration processes after mergers are fraught with difficulties, and constitute a main cause of merger failure. This study focuses on the human aspect of post-merger integration, and in particular, on the role of occupational identification. We theorize and empirically demonstrate by means of a survey design that employees’ identification with their occupation is positively related to their willingness to cooperate in the post-merger integration process, over and above the effect of organization members’ organizational identification. This positive effect of occupational identification is stronger for uniformed personnel but attenuates in the course of the integration process. Qualitative interviews further explore and interpret the results from our statistical analysis. Together, these findings have important practical implications and suggest future research directions.- "In addition, rewards, resources and decision making procedures are central to concerns regarding legitimacy (Lipponen, Olkkonen, & Moilanen, 2004). The topic of fairness has, therefore, received a considerable amount of research attention in the literature on M&As in general (Citera & Rentsch, 1993; Ellis et al., 2008; Meyer, 2001; Monin et al., 2013) and identity processes more specifically (Edwards & Edwards, 2012; Giessner et al., 2006; Gleibs et al., 2008; Lipponen et al., 2004; Tyler & Cremer, 2005). Traditionally, the organizational justice literature differentiated between two types of justice perceptions (Folger & Cropanzano, 1998). "
[Show abstract] [Hide abstract] ABSTRACT: Mergers and acquisitions (M&As) are increasingly undertaken in both the private and public sector, as organizations vie for competitiveness within challenging economic climates. Yet, the social costs of M&As are rarely considered in the planning and implementation of these impactful organizational change processes. In this review, we take a social identity approach to M&As, exploring the impact of M&A activities on employees and their local communities. Specifically, we outline the pivotal role played by identity reputation and continuity, intergroup structure and processes, leadership and justice in managing employee adjustment during M&As. Throughout our review, we pay close attention to the managerial implications of our findings for strategic planning and best practices within M&A contexts. We conclude by outlining the implications of our review for the development of official guidelines and social policies around M&A implementation.- "In addition, rewards, resources and decision making procedures are central to concerns regarding legitimacy (Lipponen, Olkkonen, & Moilanen, 2004). The topic of fairness has, therefore, received a considerable amount of research attention in the literature on M&As in general (Citera & Rentsch, 1993; Ellis et al., 2008; Meyer, 2001; Monin et al., 2013) and identity processes more specifically (Edwards & Edwards, 2012; Giessner et al., 2006; Gleibs et al., 2008; Lipponen et al., 2004; Tyler & Cremer, 2005). Traditionally, the organizational justice literature differentiated between two types of justice perceptions (Folger & Cropanzano, 1998). "
[Show abstract] [Hide abstract] ABSTRACT: Mergers and acquisitions (M&As) are increasingly undertaken in both the private and public sector, as organizations vie for competitiveness within challenging economic climates. Yet, the social costs of M&As are rarely considered in the planning and implementation of these impactful organizational change processes. In this review, we take a social identity approach to M&As, exploring the impact of M&A activities on employees and their local communities. Specifically, we outline the pivotal role played by identity reputation and continuity, intergroup structure and processes, leadership and justice in managing employee adjustment during M&As. Throughout our review, we pay close attention to the managerial implications of our findings for strategic planning and best practices within M&A contexts. We conclude by outlining the implications of our review for the development of official guidelines and social policies around M&A implementation.
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