Trajectories and antecedents of integration in mergers and acquisitions: A comparison of two longitudinal studies. (October 2017)

• Record Type: Journal Article
• Authors: Edwards, Martin R; Lipponen, Jukka; Edwards, Tony; Hakonen, Marko
• Is Part Of: Human relations. Volume 70:Number 10(2017)
• Page Start: 1258
• Page End: 1290
• Publication Date: 2017-10
• Subjects: employee integration -- identity -- longitudinal research -- M&A -- mergers and acquisitions -- organisational identification -- organisational psychology; Social sciences -- Periodicals; 302
• DOI: 10.1177/0018726716686169
• Languages: English
• ISSNs: 0018-7267

Abstract

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.