Organizational factors of justice and culture leading to organizational identification in merger and acquisition

Abstract

Purpose This paper aims to examine the influence of two organizational factors, namely, organizational justice and organizational culture, on organizational identification as perceived by employees following merger and acquisition (M&A) in Malaysia. Design/methodology/approach The study, which adopts the Social Identity Theory as its theoretical foundation, was conducted among employees from selected Malaysian organizations that had undergone M&A from 2009 to 2016. Data were obtained from 302 respondents and analysed using Structural Equation Modelling procedures. Findings The results reveal that interactional justice and four dimensions of organizational culture contribute significantly to organizational identification, with a determination power of 61 per cent. Practical implications The study offers practical insights to human resource managers in strengthening organizational identification as perceived by employees after an M&A by considering the crucial role of interactional justice and organizational culture. Originality/value There have been few investigations that link employees’ perceptions of organizational justice and culture with post-merger organizational identity. This study theorizes on human issues in M&A and enriches the Western literature on organizational identification by providing insights from an Asian (Malaysian) perspective. Research limitations/implications The research is limited in terms of respondents who were employed in M&A organizations in the Klang Valley areas in Malaysia. The scope is also limited to an examination of two groups of organizational factors, namely, justice and culture, that lead to organizational identification. Implications to managing human resources from the perspective of organizational development are discussed.

Examining the Effects of Internal Communication and Emotional Culture on Employees’ Organizational Identification

“…Given the interplay between leader ML, symmetrical internal communication, positive emotional culture, and organizational identification as hypothesized, the study also proposes the mediating role of positive emotional culture, which can potentially explain how communication in the organization influences employee identification. In particular, since leader ML and organizational-level symmetrical communication could both predict a positive emotional culture and organizational identification, and given the innate linkage between culture and identification (Ismail & Baki, 2017; Ravasi & Schultz, 2006), the study suggests that positive emotional culture could mediate the effects of leader ML and symmetrical internal communication on organizational identification. In other words, leaders’ use of meaning making, empathetic, and direction-giving language and an employee-centered internal communication system jointly create a positive emotional culture, which can in turn, boost employee organizational identification.…”

Antecedents of Organizational Identification: A Review and Agenda for Future Research

“…A longitudinal study of students from a recently merged university, for instance, revealed the perceived fairness of the merger process positively predicted students’ post-merger identification, and the positive effect of fairness increased over time (Gleibs, Mummendey, & Noack, 2008). Another study of employees from organizations that had undergone recent mergers and acquisitions (M&A) revealed a similar importance of justice, with perceptions of interactional justice (e.g., being treated by managers with kindness, respect, and dignity regarding job decisions) having a positive effect on employees’ OI following the M&A (Ismail & Baki, 2017).…”

The Mediation Role of Organizational Justice in the Effect of Organizational Virtuousness on Work Productivity

“…It may be tempting to take administrative decisions that may be in favor of certain employees regarding the distribution of organizational outputs within the framework of powers (Abekah-Nkrumah & Atinga, 2013). However, the distributive justice perception becomes valid only when the "win-win" situation occurs (Ismail & Baki, 2017). Therefore, in a business life, all employees compare the benefits they provide to the organization with the salary they receive, and in some cases, it improves the perception of injustice, and this affects the employees' perceptions of justice (Hao et al, 2016).…”