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Belonging or independence – a case study of identity in M&As

Trägårdh, Peter LU and Ericson, Carl LU (2019) BUSN49 20191
Department of Business Administration
Abstract
The purpose of this study is to explore identity dynamics in mergers and acquisitions. As Clark, Gioia, Ketchen and Thomas (2010) point out, traditional economic perspectives are often not sufficient in explaining merger outcomes. Extant research on identity largely take a functionalist approach and frequently use quantitative methods, not taking the individual seriously. In contrast, we want to be close to reality and focus on specific instances of identity presentations and identity struggles, departing from the individual. This study seeks to answer the following research question; How does the M&A process affect the identities of employees? The project consists of a qualitative close-up study of a knowledge-intensive technology company... (More)
The purpose of this study is to explore identity dynamics in mergers and acquisitions. As Clark, Gioia, Ketchen and Thomas (2010) point out, traditional economic perspectives are often not sufficient in explaining merger outcomes. Extant research on identity largely take a functionalist approach and frequently use quantitative methods, not taking the individual seriously. In contrast, we want to be close to reality and focus on specific instances of identity presentations and identity struggles, departing from the individual. This study seeks to answer the following research question; How does the M&A process affect the identities of employees? The project consists of a qualitative close-up study of a knowledge-intensive technology company in Scandinavia that has recently made two acquisitions. Working within the interpretive traditions, we have conducted interviews. According to the literature, M&As can be expected to trigger rather emotional reactions, ‘we versus them’ thinking and so called identity work. In contrast, we find that the M&A process unfolded in an undramatic manner. We find that, even though employees point out problems during the process, they stand rather neutral or even positive toward the acquisition as a whole. In the literature, it is often assumed that organizational identities are important for understanding M&A outcomes. Our results suggest that employees’ occupational identity is more salient than the commonly discussed organizational identity. As occupational identity is not necessarily threatened in M&As, this acts as a stabilizer. Thus, M&A related changes are not perceived as personal or threatening, and do not trigger any significant identity work or identity related problems. (Less)
Please use this url to cite or link to this publication:
author
Trägårdh, Peter LU and Ericson, Carl LU
supervisor
organization
course
BUSN49 20191
year
type
H1 - Master's Degree (One Year)
subject
language
English
id
8983987
date added to LUP
2019-07-04 16:38:08
date last changed
2019-07-04 16:38:08
@misc{8983987,
  abstract     = {{The purpose of this study is to explore identity dynamics in mergers and acquisitions. As Clark, Gioia, Ketchen and Thomas (2010) point out, traditional economic perspectives are often not sufficient in explaining merger outcomes. Extant research on identity largely take a functionalist approach and frequently use quantitative methods, not taking the individual seriously. In contrast, we want to be close to reality and focus on specific instances of identity presentations and identity struggles, departing from the individual. This study seeks to answer the following research question; How does the M&A process affect the identities of employees? The project consists of a qualitative close-up study of a knowledge-intensive technology company in Scandinavia that has recently made two acquisitions. Working within the interpretive traditions, we have conducted interviews. According to the literature, M&As can be expected to trigger rather emotional reactions, ‘we versus them’ thinking and so called identity work. In contrast, we find that the M&A process unfolded in an undramatic manner. We find that, even though employees point out problems during the process, they stand rather neutral or even positive toward the acquisition as a whole. In the literature, it is often assumed that organizational identities are important for understanding M&A outcomes. Our results suggest that employees’ occupational identity is more salient than the commonly discussed organizational identity. As occupational identity is not necessarily threatened in M&As, this acts as a stabilizer. Thus, M&A related changes are not perceived as personal or threatening, and do not trigger any significant identity work or identity related problems.}},
  author       = {{Trägårdh, Peter and Ericson, Carl}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Belonging or independence – a case study of identity in M&As}},
  year         = {{2019}},
}