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What, when, and who: Manager involvement in predicting employee resistance to acquisition integration

David R. King, Florian Bauer, Qingxiong (Derek) Weng, Svante Schriber, Shlomo Tarba

Human Resource Management · 2020 · Volume 59 · Issue 1

DOI: 10.1002/hrm.21973

Abstract

Applying sensemaking research to acquisition integration, we outline factors that influence employee resistance to acquisitions. While integration is widely viewed as important to acquisition outcomes, there is limited systematic study of how employees react to the integration process. Using survey data from Chinese acquirers and applying partial least squares structural equation modeling, we examinewhatchanges with human and task integration with the speed ofwhenchanges are made to explore relationships with employee resistance. Consistent with a temporal perspective of acquisition processes and sensemaking we find slower task integration may mitigate employee resistance to acquisition integration. However, employee resistance to the speed that changes are made likely varies forwhois involved, suggesting different roles for top and middle managers. Specifically, middle management involvement with slow human integration and top management involvement with fast task integration reduces employee resistance following an acquisition.

Keywords

acquisition strategy, employee relations, mergers

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