Abstract

Mergers and acquisitions (M&As) offer both advantages and challenges to firms that pursue this growth strategy. Although various frameworks and approaches have been designed to reduce the risks of these transactions, high failure rates continue to plague M&A events. This study investigated a lesser-examined but powerful factor in change outcomes: organization identity. This study examined the effects of M&As on organization identity and identified practices for assessing and addressing identity threat and integration as part of an M&A. The research design was a single case study, with 11 employees ranging from individual contributors to executives being recruited from an organization that had recently undergone an M&A event. Each participant completed a one-on-one interview to gather their perceptions of their original company’s organization identity, any shifts they perceive in that identity, and how those shifts have affected them. Participants’ suggestions for managing organization identity for improved M&A outcomes were solicited. Study findings indicated that the M&A event had profound adverse impacts on the identities of the organizations involved in the event. The organization identity shifts affected organization members in significant and negative ways, including experiences of confusion, traumatic loss, diminished loyalty of the whole, and personal identity shifts. Proposed activities for managing organization identity throughout an M&A event include deliberate strategic alignment and human capital allocation, transparent communication, cross-organizational relationship building, and protection of customer and employee needs throughout the M&A event.

Library of Congress Subject Headings

Consolidation and merger of corporations; Organizational change; Group identity—Corporations

Date of Award

2024

School Affiliation

George L. Graziadio School of Business and Management

Department/Program

Business

Degree Type

Thesis

Degree Name

Masters

Faculty Advisor

Ann E. Feyerherm

Share

COinS