Is the Merger Necessary? The Interactive Effect of Perceived Necessity and Sense of Continuity on Post-Merger Identification

Steffen Giessner

ERIM Report Series Research in Management from Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam

Abstract: The changes experienced during a merger often reduce post-merger organizational identification among the workforce, thereby undermining the strategic goals of the merger. While previous research has shown that employees’ post-merger identification suffers less when they experience a sense of continuity, the current paper explores methods of preserving post-merger identification even when employees experience a sense of discontinuity. It is hypothesized that for these employees, the perceived necessity of the merger strongly influences post-merger identification, because a sense of necessity can reduce the uncertainty that typically inhibits post-merger identification. A field study is presented (N = 144) to support this hypothesis. Finally, implications for the organizational pre-merger communication process are discussed.

Keywords: necessity; organizational merger; post-merger identification; sense of continuity; uncertainty (search for similar items in EconPapers)
Date: 2011-08-01
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Citations: View citations in EconPapers (5)

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