The Role of Informal Networks in Sensemaking and Obtaining Power in Post-Acquisition Integration

Abstract

This qualitative case study examines how employees leverage their informal advice networks to navigate uncertainty in a turbulent post-acquisition integration process at a tech consulting firm over two years. Using interview, network survey, and data, I identified the role of employees’ informal networks in shaping their differential sensemaking process and ability to obtain power and influence during the organizational upheaval. My research shows that individuals’ sensemaking process is influenced by both the openness of their informal advice networks and the strength of their ties with senior leaders at the legacy firm. The openness of informal networks shapes the diversity of information employees receive; and the tie strength affects information access and sponsorship opportunities among acquired employees. Moreover, early movers were advantaged in becoming boundary spanners and gain power and influence. These findings underscore the importance of informal networks in helping individuals adapt to changes and attain status and power inside the integrated organization. Furthermore, by adopting a relational view, the study sheds light on the tenacious force behind employees’ sensemaking processes over whether to stay or leave and their differential attainment of status and power at the acquired firm.