Publication
Trajectories and antecedents of integration in mergers and acquisitions: A comparison of two longitudinal studies
Publisher:
SAGE Publications
Date:
17-03-2017
DOI:
10.1177/0018726716686169
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 s les 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 s les, 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.