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The Group Psychology of Mergers & Acquisitions: Lessons from the Social Identity Approach

Advances in Mergers and Acquisitions

ISBN: 978-0-7623-1381-5, eISBN: 978-1-84950-467-6

Publication date: 4 September 2007

Abstract

The presumed financial benefits of mergers & acquisitions (M&As) often do not materialize. At the same time, M&As are reported to create a host of negative reactions on the part of the employees involved. In recent years, these circumstances have led many scholars to use the social identity approach (SIA) in order to better understand the group psychology of M&As. This paper reviews recent M&A research inspired by the SIA and derives three general lessons that are explained in some detail: First, post-merger identification is important for M&As integration and success. Second, M&As pose a threat to organizational identification. Therefore, and third, if you have to merge – merge right.

Citation

Ullrich, J. and van Dick, R. (2007), "The Group Psychology of Mergers & Acquisitions: Lessons from the Social Identity Approach", Cooper, C.L. and Finkelstein, S. (Ed.) Advances in Mergers and Acquisitions (Advances in Mergers and Acquisitions, Vol. 6), Emerald Group Publishing Limited, Leeds, pp. 1-15. https://doi.org/10.1016/S1479-361X(07)06001-2

Publisher

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Emerald Group Publishing Limited

Copyright © 2007, Emerald Group Publishing Limited