Identity Management during Organizational Mergers: Empirical Insights and Practical Advice

Abstract

Mergers and acquisitions (M&As) are increasingly undertaken in both the private and public sector, as organizations vie for competitiveness within challenging economic climates. Yet, the social costs of M&As are rarely considered in the planning and implementation of these impactful organizational change processes. In this review, we take a social identity approach to M&As, exploring the impact of M&A activities on employees and their local communities. Specifically, we outline the pivotal role played by identity reputation and continuity, intergroup structure and processes, leadership and justice in managing employee adjustment during M&As. Throughout our review, we pay close attention to the managerial implications of our findings for strategic planning and best practices within M&A contexts. We conclude by outlining the implications of our review for the development of official guidelines and social policies around M&A implementation.