Organizational identity in acculturation in cross-border acquisitions: Implications for HRD practitioners in global M&A

ABSTRACT

The purpose of this study is to explore the role of organizational identity in acculturation, or organizational culture development, between the acquired and the acquiring organizations during a cross-border acquisition. The goal is to identify how long-term and short-term employees identify with the acquired organization, and the implications for acculturation for both groups. It is also to help identify implications for Human Resource Development Practitioners in this process. The long-term employees (more than seven years) of the acquired organization identified more strongly with the organization than the short-term (three or less years) employees in this study. The short-term employees seemed to welcome the acquiring Multinational Company (MNC), and readily adapted to their multicultural identity, while long-term employees were more concerned with maintaining the reputation of the original organization. The study provides Human Resource Development (HRD) practitioners with a better understanding of how and why organizational identity is an important aspect to consider in the acculturation process in cross-border mergers and acquisitions. It also provides insight into how to work with organizational identity with acquired organizations in integration and adaptation to the new organization by understanding the differences in organizational identity of long-term and short-term employees in India.

KEYWORDS:

• Acculturation in cross-border M&A
• organizational identity
• organizational culture
• HRD in cross border M&A
• India