Rough Winds? Emotional Climate Following Acquisitions

Abstract

Purpose: This chapter explores how organizations can influence the emotional climate surrounding change, and thereby encourage the emergence of positive rather than negative emotions. Despite growing literature, many companies struggle with postacquisition integration. In the last 3 decades, the discussion has turned toward how employees' emotions complicate the process. This chapter discusses those emotions, paying special attention to the emotional climate surrounding change. The focus is on examining how an organization's emotional climate influences employees' emotions following an acquisition.

Design/methodology/approach: The chapter takes the acquired company point of view, following a German–Finnish deal completed in January 2017 over 1 year. Data were collected through interviews (totaling 26), daily memo-like diaries (65 entries), and an employee satisfaction survey (56 respondents).

Findings: The findings reveal that employees are likely to have emotional reactions even when relatively little integration is intended. In addition, the surrounding emotional climate – whether positive or negative – is likely to trigger similarly valenced emotions. The theoretical contribution of this chapter lies in the introduction of emotional climate rather than organizational culture as a key factor for employees during the early integration period.

Practical implication: Particularly line managers have an important role in maintaining positivity. For positivity to dominate, organizations need to make the benefits of the deal and the future of the company clear to the employees.

Citation

Harikkala-Laihinen, R. (2020), "Rough Winds? Emotional Climate Following Acquisitions", Härtel, C.E.J., Zerbe, W.J. and Ashkanasy, N.M. (Ed.) Emotions and Service in the Digital Age (Research on Emotion in Organizations, Vol. 16), Emerald Publishing Limited, Leeds, pp. 153-171. https://doi.org/10.1108/S1746-979120200000016013