Is the merger necessary? The interactive effect of perceived necessity and sense of continuity on post-merger identification

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 article 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.