Managing change after the merger: the value of pre-merger ingroup identities

Purpose – The purpose of this paper is to examine the role that pre-merger identification plays within a post-merger setting. Social Identity Theory (SIT) has conflicting reports on the role that pre-merger identification plays in post-merger integration. The current research explores a case study where enhancing pre-merger identification resulted in positive post-merger identification and intergroup relations; progressing knowledge in the field by analysing the contextual factors that facilitate this outcome. Design/methodology/approach – The research follows a case study design applying integration method for the study of changes over time. Two sets of in-depth semi-structured interviews underwent content analysis to derive thematic findings. Case detail was also provided to frame the results. Findings – Findings of the research showed that the integration strategy used to facilitate pre-merger ingroup identification reduced the perceived status differences between groups, moderately improved ingroup relations, and significantly improved intergroup relations. Practical implications – For strategic planners involved in managing change during a merger, the findings provide an alternative integration strategy to be used within a joint-brand structure. The research also provides several analysis points that managers can use to design appropriate integration strategies. Originality/value – The findings are important for the application of SIT to mergers and acquisitions, which commonly view pre-merger identification as a barrier to integration. The current study outlines the contextual factors which strengthen the relationship between pre-merger identity and post-merger identification.