An SEM-ANN analysis of the influence of strategic merger on strategic postchange of family businesses

Abstract

Purpose

Companies seek to increase the percentage of acquisitions in different parts of the world by expanding operations. Many companies are adopting strategic mergers to expand their influence. However, most strategic change programs fail to achieve their objectives. This study aims to investigate employees’ reactions after strategic mergers through the mediating role of the employees’ psychological context. It was necessary to identify the most prominent postmerger employees’ behaviors. The study addressed this gap by investigating the outcomes of strategic mergers.

Design/methodology/approach

Data for this study were collected from 30 family businesses. Accordingly, 341 questionnaires were collected with an overall response rate of 64%. The structural equation modeling (PLS-SEM) approach and the nonlinear relationships approach were adopted by implementing artificial neural network (ANN) analysis.

Findings

The results confirm that there is a clear impact of strategic mergers on employees’ postmerger behavior because of the change at the hierarchical level and the process of distributing roles. Employees’ psychological context (individual incentives, anxiety and individual mobbing) mediates the relationship between strategic mergers and postmerger employees’ behavior. In addition, individual incentives are considered the main contributor to retaining or not retaining employees in family businesses after strategic merger.

Research limitations/implications

Policymakers in organizations must pay attention to employees’ possible reactions to the internal and external policies of the organization by increasing individual incentives and reducing individual mobbing toward strategic merger. This study has theoretical implications that are critical guidelines for academics in mitigating the negative consequences for employees’ postmerger behavior. This study captured linear and nonlinear relationships to discover the determinants and antecedents of a strategic merger in family businesses. However, future studies should focus on using more robust statistical methods by adopting decision-making methods to determine the best and worst companies in terms of adopting strategic mergers.

Originality/value

The scarcity of literature on the most important determinants of postmerger employees’ behavior is considered an encouragement to conduct the current study. To this end, this study enriches the ongoing and future literature by examining the most important factors influencing the strategic merger of family businesses. Family businesses have changed the economic landscape of many countries. The investigation of the strategic merger of these companies is considered a worthy matter of study to improve the nation’s economy.

Citation

Alnoor, A. and Atiyah, A.G. (2024), "An SEM-ANN analysis of the influence of strategic merger on strategic postchange of family businesses", Nankai Business Review International, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/NBRI-07-2023-0060