The effect of change in organizational identity on knowledge creation by mobile R&D workers in M&As

Purpose – The purpose of this paper is to examine the relationship between change in organizational identity and knowledge creation of mobile research and development (R&D) workers by combining the literature on human mobility and mergers and acquisitions (M&As). Design/methodology/approach – Negative binomial regression was used to test the hypotheses, based on knowledge creation of 410 mobile R&D workers in 75 high-technology M&As. Findings – The findings showed that while a change in organizational identity after M&As decreased the knowledge creation by R&D workers who moved before M&As, a higher degree of human capital in mobile R&D workers could increase knowledge creation after M&As. A moderating effect of the change in organizational identity on the relationship between knowledge creation and human capital of mobile R&D workers was also found. Research limitations/implications – This paper augmented the research opportunity on the organizational change and knowledge creation during an M&A by combining study of individual-level human mobility during firm-level M&As, suggesting change in organizational identity affects knowledge creation of mobile R&D workers. A limitation of this study is the focus of human capital accumulated in the prior company before movement. Practical implications – The study suggests that managers intending to acquire knowledge through human mobility and M&As must implement post-mergers activities such as structural integration with care. Originality/value – Much of the literature on human mobility has focused on knowledge creation after movement, regardless of the changes that may occur in of focal dyadic companies during M&As. The paper might be one of the first studies of knowledge creation of mobile R&D workers within the context of M&As.