Trajectories and antecedents of integration in mergers and acquisitions: A comparison of two longitudinal studies
journal contributionposted on 29.11.2017 by Martin R. Edwards, Jukka Lipponen, Tony Edwards, Marko Hakonen
Any type of content formally published in an academic journal, usually following a peer-review process.
Despite existing research examining snapshots of employee reactions to organizational mergers and acquisitions (M & A), there is a complete absence of work theorizing or exploring rates of change in employees’ organizational identification with the merged entity. We address this gap using two three-wave longitudinal panel samples from different M & A settings, tracking change in identification through a two-year period. Theorizing trajectories of change in identification across the organizations in both settings, we make predictions linked to expected antecedents of change in identification. Our research context (M & A-1) involves a merger of three Finish universities tracking 938 employees from each organization in three waves (nine months pre-merger to 24 months post-merger). Our second context (M & A-2) involves a multinational acquisition tracking 346 employees from both the acquired and acquiring organization in three waves (from two to 26 months post-acquisition). Using Latent Growth Modelling, we confirm predicted trajectories of change in identification. Across both samples, a linear increase (across Time 1, Time 2 and Time 3) in justice and linear decrease in threat perceptions were found to significantly predict a linear increase in identification across the post-M & A period. We discuss organizational identification development trajectories and how changes in these two antecedents account for changes in identification across M & A contexts.
- Loughborough University London