Status, Legitimacy, and Ingroup Bias in the Context of an Organizational Merger

Abstract

Adopting an intergroup perspective, the research was designed to examine predictors of employee responses to an organizational merger. Data were collected from 120 employees of a newly merged scientific organization. As predicted from social identity theory, the most negative responses to the merger were apparent among the employees of the low status premerger organization. There was also evidence of ingroup bias among both groups of employees involved in the merger—as expected, the bias was most marked on the status-irrelevant dimensions for the employees of the lower status organization, but most marked on the status-relevant dimensions for the employees of the high status organization. Also, in support of social identity theory, the perceived legitimacy of the basis for the status differentiation between the groups was associated with more positive responses to the merger among employees of the low status premerger organization, but with poorer responses among employees of the high status premerger organization. There was consistent evidence that the status by legitimacy interaction was mediated through the extent to which employees of the newly merged organization perceived a common ingroup identity