ABSTRACT

This chapter examines the role of identity in Mergers and Acquisitions (M&A), by exploring the influence of multiple identities on individuals’ reaction. The concept of identity as a key factor in predicting individuals’ behaviour during mergers and acquisitions has received considerable attention in organisational studies. In particular, past research demonstrates that individuals’ ability to achieve a sense of continuity in identity plays a significant role in enhancing identification in the new organisation. However, research in the field has predominantly been approached through the social identity lens, even though there are other prominent identity theories at play during identity construction, i.e. identity work and identity regulation. Consequently, this singular focus on social identity has meant that, only one identity (i.e. organisational) tends to be explored in M&A research. Current research argues that in order to understand the significance of identity for M&A and HRD, these theories need to be incorporated and examined. To provide a comprehensive understanding of this relationship, in-depth interviews were conducted in a recently merged college. The findings demonstrate that continuity mediated the negative relationship between pre-merger and post-merger identification and continuity was achieved through the other identities that individuals held in their old colleges. Based on this it is recommended that HRD focus on achieving a sense of continuity in order to enhance organisational identification, by increasing awareness of identities individuals might hold, as these might pose implications for identification in the new organisation.