Organisational Commitment in Acquisitions

Organisational commitment has been studied for several decades. Research on the human resource side of mergers and acquisitions has typically emphasised the human resource ‘problems’ related to integration, such as low motivation, increased dissatisfaction, low commitment and performance, stress, leadership and power struggles, and high employee turnover. However, there is scant research on organisational commitment in the context of acquisitions. Yet, based on prior research, organisational commitment is important in terms of employee retention, commitment to change and post-acquisition performance. The model developed in this chapter explains what influences organisational commitment in acquisitions and how to build organisational commitment towards the acquirer. A number of propositions are derived from the model, and the implications for M&A research and practice are discussed.