Linking leaders' identity work and human resource management involvement: the case of sociocultural integration in Chinese mergers and acquisitions

Abstract

Chinese mergers and acquisitions (M&A) practice has witnessed a series of reforms since the 1980s, with considerable impact on human resource management (HRM) practices, acquisition types and working conditions. This study examines the sociocultural integration in M&A and HRM involvement in the acquisition of state-owned enterprises (SOEs) by privately owned enterprises in China using qualitative data from three M&A case studies. The research explores issues relating to firm ownership structure, party committee, leadership and value orientation using a comparative perspective to highlight the role of various factors in shaping the sociocultural integration process in M&A. The authors deploy identity theory to elucidate leaders' identity work in linking HRM activities, existing or emerging, that underpin this integration process. The findings shed important light on the influence of SOEs in private Chinese firms' M&A endeavours and the role of leaders' identity work and HRM involvement from a microfoundational perspective.