The intergroup sensitivity effect in mergers and acquisitions: Testing the role of merger motives

Liang, Shuang; Ullrich, Johannes; Dick, Rolf van; Łupina-Wegener, Anna

doi:10.1111/jasp.12785

Cited by 7 publications

(5 citation statements)

References 36 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…These findings also extend the insights of previous studies from the social identity approach such as Liang et al (2021), who highlight how the ingroup sensitivity effect is relevant for M&As demonstrating that acquirer employees might respond negatively to the criticisms of acquired employees even when learning is the motive of the acquisition. Therefore, acquirer managers can implement actions to facilitate the emergence of serendipitous value and transfer of capabilities (Graebner, 2004; Colman, 2020).…”

Section: Discussionsupporting

confidence: 85%

“…Furthermore, these identity dynamics are under-investigated in the context of the acquisition of capabilities. Liang et al (2021) conducted two experiments arguing that people would respond less negatively to criticisms of outgroup members when the motive is access to their valuable knowledge. While their hypothesis is not confirmed, they call for more research on intergroup dynamics with specific attention to merger motives.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

See 1 more Smart Citation

Unpacking the dynamics in acquisition of capabilities: the role of identities during postmerger integration

Karamustafa-Köse

Schneider

Davis

2022

JOCM

View full text Add to dashboard Cite

PurposeDespite best intentions, mergers and acquisitions often do not live up to the expectations for performance. This study examined how the salience of multiple identities creates dynamics in postmerger integration processes and how these dynamics influence the acquisition of the target's capabilities.Design/methodology/approachThe authors conducted an in-depth case study of a large American consumer goods multinational corporation's acquisition of a family-owned German beauty business and examined responses to decisions and events during the postmerger integration process.FindingsThe results show how and why efforts to acquire unique target capabilities might not deliver the hoped-for results. The authors discovered multiple identities that became salient during the postmerger integration process which subsequently influenced interpretations and reactions to decisions and events and which created intergroup dynamics. The authors also noted the role of language in making these identities salient. Such dynamics pose challenges to managing the postmerger integration process and to acquiring sought after capabilities.Originality/valueThis study reveals how different identities become salient in the interpretation of particular events and decisions, resulting in emotional and behavioral reactions and intergroup dynamics. Furthermore, it uncovers the role of language in making identities salient. This study offers further insight into identity dynamics when the capability of the target firm is the motive of the acquisition.

show abstract

Section: Discussionsupporting

confidence: 85%

Section: Theoretical Backgroundmentioning

confidence: 99%

Unpacking the dynamics in acquisition of capabilities: the role of identities during postmerger integration

Karamustafa-Köse

Schneider

Davis

2022

JOCM

View full text Add to dashboard Cite

show abstract

“…Our findings have implications for leadership and management practice. Acquiring and acquired organizations need to approach the post-merger integration with a growth mindset (Murphy & Dweck, 2010), learn from the outgroup members by integrating feedback as legitimate and constructive (Liang et al, 2021). The AOI is an important factor to such a constructive ingroup and outgroup collaboration and it helps avoid resistance resulting from pre-merger group membership.…”

Section: Discussionmentioning

confidence: 99%

‘Change is Our Continuity’: Chinese Managers’ Construction of Post-Merger Identification After an Acquisition in Europe

Liang

Łupina-Wegener

Ullrich

et al. 2021

Journal of Change Management

Self Cite

View full text Add to dashboard Cite

This article examines organizational identification construction in mergers and acquisitions (M&As). The majority of existing studies have focused on antecedents and outcomes of post-merger identification (PMI) in Western contexts. While more and more Chinese cross-border M&As are taking place, how Chinese employees construct PMI remains underexplored. We adopted a qualitative case study approach to investigate how Chinese managers construct PMI after acquiring a European company. As the main contribution, we introduce the concept of agile organizational identity (AOI), wherein agility is a central, enduring and distinctive characteristic of an organization, i.e. 'who we are and who we want to be'. Our findings reveal that AOI is leveraged by Chinese managers to deal with their perceived inferior status, help them cope with the change and contribute to the construction of a strong PMI. We believe that our study provides a new perspective on how employees can effectively cope with organizational change while maintaining a sense of identity continuity. MAD statementThis article examines organizational identification construction in mergers and acquisitions (M&As). We provide novel insights by introducing the agile organizational identity (AOI) concept, wherein the agility is a central, enduring and distinctive characteristic of an organization, i.e. 'who we are and who we want to be'. To maintain such a pre-merger identity after M&As, people strive to continue changing as change is the continuity. Thus, psychological bonds between an employee and the employing organization do not become weaker. As agility is incorporated in the organizational identity, AOI helps employees to cope with the low status of their organization, accept organizational changes, and identify with the post-merger organization. Organizational leaders might want to foster AOI in order to successfully conduct strategic change initiatives.

show abstract

“…This suggests that mediamessages should aim to reduce threat and make sure to convey their benevolent intention, as should those who participate in public debate (Adelman & Verkuyten, 2020). In line with this claim, recent research observed a reduced ISE in an organizational setting when the outgroup expressed benevolent intentions (Liang et al, 2021). In addition, more specific COVID-related emotions, such as fear, rage, sadness, or boredom, may play a more prominent role (e.g., Carstensen et al, 2020;Wolff et al, 2020).…”

Section: Discussionmentioning

confidence: 91%

Supplemental Material for On efficient mass-media messages during the COVID-19 pandemic: The role of expertise and expressed social identity.

Thürmer¹,

McCrea²

2022

Technology, Mind, and Behavior

View full text Add to dashboard Cite

The Coronavirus disease (COVID-19) pandemic requires swift behavior change based on the most up-to-date recommendations. To reach many people, the use of mass media and technology is key. We therefore investigate how health advice in the media can most effectively change behavioral intentions. Specifically, we integrate the literature on science rejection and on intergroup criticism to argue that people are likely to follow expert advice, but only if these experts communicate a common group identity ("we"). Our preregistered and high-powered experiment showed weak support for these registered hypotheses. Exploratory moderation analyses including trust in science and political orientation produced inconsistent results. Exploratory mediation analyses showed a consistent positive impact of rated expertise on intention to comply and perceived inadequacy of public response, mediated by message motive ratings. Health experts or public figures who communicate health-advice in the media should thus clarify their expertise and intention. We discuss implications and future directions.

show abstract

The intergroup sensitivity effect in mergers and acquisitions: Testing the role of merger motives

Cited by 7 publications

References 36 publications

Unpacking the dynamics in acquisition of capabilities: the role of identities during postmerger integration

Unpacking the dynamics in acquisition of capabilities: the role of identities during postmerger integration

‘Change is Our Continuity’: Chinese Managers’ Construction of Post-Merger Identification After an Acquisition in Europe

Supplemental Material for On efficient mass-media messages during the COVID-19 pandemic: The role of expertise and expressed social identity.

Contact Info

Product

Resources

About