ISSN 2736-1721
Global Journal of Business Management ISSN 6731-4538 Vol. 4 (4), pp. 001-010, April, 2010. © International Scholars Journals
Full Length Research Paper
Factors that influence employees’ organizational identity after M & A: The acquirer and acquired perspective
Ching-Chi Lee1*, Cou-Chen Wu1 and Hsiang-Ming Lee2
1Department of Business Administration, National Taiwan University of Science and Technology, Taipei City, Taiwan.
2Department of Business Administration and Institute of Business and Management, Ching Yun University, Taoyuan County 320, Taiwan (ROC).
Accepted 02 January, 2010
Abstract
The purpose of this study is to examine the factors that influence employees’ organizational identification after M & A from the acquirer and acquired employees’ perspective. A meta-analysis was conducted to determine the factors that influence employees’ organizational identification. A total of 261 questionnaires were collected through convenience sampling from four acquirer and acquired bank employees in Taiwan (135 acquirer respondents, and 126 acquired respondents). Results from the multi-regression show that pre-merger organization identification, trust in the merger, and procedural justice all have a positive influence on post-merger organizational identification. Trust in the merger had the most significant influence for both acquiring and acquired employees. Only the expected utility in merger failed to have a significant influence on post-merger identification for both groups.
Key words: M & A (mergers and acquisitions), pre-merger organizational identification, trust in merger, procedure justice, expected utility in merger, post-merger organizational identification.