The effect of change in organizational identity on knowledge creation by mobile R&D workers in M&As

Abstract

Purpose– The purpose of this paper is to examine the relationship between change in organizational identity and knowledge creation of mobile research and development (R&D) workers by combining the literature on human mobility and mergers and acquisitions (M&As).Design/methodology/approach– Negative binomial regression was used to test the hypotheses, based on knowledge creation of 410 mobile R&D workers in 75 high-technology M&As.Findings– The findings showed that while a change in organizational identity after M&As decreased the knowledge creation by R&D workers who moved before M&As, a higher degree of human capital in mobile R&D workers could increase knowledge creation after M&As. A moderating effect of the change in organizational identity on the relationship between knowledge creation and human capital of mobile R&D workers was also found.Research limitations/implications– This paper augmented the research opportunity on the organizational change and knowledge creation during an M&A by combining study of individual-level human mobility during firm-level M&As, suggesting change in organizational identity affects knowledge creation of mobile R&D workers. A limitation of this study is the focus of human capital accumulated in the prior company before movement.Practical implications– The study suggests that managers intending to acquire knowledge through human mobility and M&As must implement post-mergers activities such as structural integration with care.Originality/value– Much of the literature on human mobility has focused on knowledge creation after movement, regardless of the changes that may occur in of focal dyadic companies during M&As. The paper might be one of the first studies of knowledge creation of mobile R&D workers within the context of M&As.