Identification Processes in Post-Acquisition Integration: The Role of Social Interactions

Abstract

We examine the role of social interactions between employees of two firms in a post-acquisition context on their identification with two relevant loci of identification: the pre-acquisition unit and the acquirer group. We used a mixed methods longitudinal design to understand how social interaction foster dual identification. Quantitative results show that social interactions foster identification with the pre-acquisition unit and with the acquirer. Moreover, qualitative results give a finer-grained vision of social interactions. We show that situated identification develops thanks to joint objectives, deadlines, quick wins and contribution to the whole group. This paper contributes to the literature on organizational identification specifying the effects of an understudied antecedent on two loci of identification. It also contributes to the literature on the management of the post-acquisition integration process empirically confirming that social interactions are favorable in the integration process.