Restoring trust in the context of strategic change

2017 ◽  
Vol 16 (4) ◽  
pp. 401-428 ◽  
Author(s):  
Therese E Sverdrup ◽  
Inger G Stensaker
Keyword(s):  
Psychological Contract ◽  
Change Process ◽  
Strategic Change ◽  
Stage Model ◽  
Relational Dynamics ◽  
Trust Repair ◽  
Employee Trust ◽  
Post Merger Integration ◽  
Merger Integration ◽  
The Relationship

The strategic change literature underscores the risk of loss of trust during change but does not address how trust can be restored once compromised. We conduct an inductive longitudinal study of an organization undergoing post-merger integration and examine how management worked to restore employee trust after a conflictual change process. We introduce the psychological contract perspective, which emphasizes relational explanations for loss of trust. We show that repairing trust can be conceptualized as a renegotiation of the psychological contract and develop a three-stage model of trust repair. In contrast to extant models of trust restoration, which emphasize diagnosis, explanation, penance, and reform, our model attends to relational dynamics that may emerge in the context of organizational change, with heightened uncertainty and ambiguity, and highlights the importance of restoring balance and renegotiating the contractual basis of the relationship.

Impact of psychological capital on the resistance to change during post-merger integration

2017 ◽  
Vol 30 (6) ◽  
pp. 936-956 ◽  
Author(s):  
Jennifer Linda Dorling
Keyword(s):  
Theoretical Model ◽  
Psychological Capital ◽  
Resistance To Change ◽  
Content Type ◽  
Employee Resistance ◽  
Research Findings ◽  
Research Questions ◽  
Post Merger Integration ◽  
Merger Integration ◽  
The Relationship

Purpose Mergers and acquisitions (M&As) are major corporate changes and are among the most stressful for employees. Employee resistance is a well-recognised reason for high failure rates of post-merger integration (PMI). The contemporary concept of psychological capital (PsyCap) is a promising approach for dealing with the issue. To date, relatively little research has been conducted on the relationship between PsyCap and resistance. The purpose of this paper is to examine the possible positive impacts of PsyCap on employee resistance during PMI, based on a review of the existing literature and selected interviewers with a panel of experts, and offer a theoretical model for decreasing the resistance. Design/methodology/approach This paper builds on the literature on M&A, PMI, and employee resistance by focusing on the contribution of PsyCap. Apart from formulating propositions and answering pre-determined research questions, the findings are the basis for a theoretical model that was validated by a panel of experts. Findings This research documents the negative emotions that are triggers for resistance during PMI under the influence of PsyCap. By measuring and assessing the PsyCap needs of employees, resistant employees were revealed, and their PsyCap was developed using tailored interventions. The research findings indicate this to be a feasible approach for reducing resistance during PMI. Research limitations/implications All of the findings rely on empirical testing and operationalisation. Cultural differences may influence the PsyCap dimensions. Practical implications M&A deals often fail due to unsuccessful PMI implementation because leaders fail to consider the psychological impacts when trying to overcome resistance. The model proposes a possible solution. Originality/value The offered theoretical approach is original and provides new insights for researchers and practitioners who evaluate M&A strategies.

Employee trust dynamics during organizational change: a context of mergers and acquisitions

2016 ◽  
Vol 8 (1) ◽  
pp. 55-69 ◽  
Author(s):  
Anjali Bansal
Keyword(s):  
Strategic Human Resource Management ◽  
Bivariate Analysis ◽  
Mixed Method Research ◽  
Psychological Variables ◽  
Content Type ◽  
Employee Trust ◽  
Post Merger Integration ◽  
Relationship Of ◽  
Merger Integration ◽  
Performance Research

Purpose – The purpose of this paper is to explore the relationship of employees’ element of organizational trust with the processes and practices of the merged organization during post-M & A integration post-merger integration (PMI) phase. Specifically the variables of employees’ perceptions of effectiveness of HR initiatives, communication, and cultural convergence were studied as important determinants of employees’ trust. Design/methodology/approach – A mixed method research design was adopted, where quantitative data were collected through questionnaires, and the qualitative support has been gained asking open ended elaborated questions. The analysis was performed on the data obtained from 117 respondents having experienced merger or acquisition in past two to three years. Univariate and bivariate analysis were performed on the data using SPSS. Findings – The results of the study indicated the significant positive relationship amongst the variables understudy. It has been found that the poor management of the underlined processes and practices during PMI phase would negatively impact the employees’ phenomenon of trust in the merged organization. Practical implications – This research has significant implications for researchers and practitioners. This study contributes to the understanding of the psychological outcomes of M & A survivors as an imperative for strategic human resource management. Originality/value – This research is an extension of M & A performance research in terms of psychological variables, and is an initiative to discuss M & A cases from the context of a fast developing economy.

scholarly journals Integration modes, global networks, and knowledge diffusion in overseas M&As by emerging market firms

2019 ◽  
Vol 23 (7) ◽  
pp. 1289-1313 ◽  
Author(s):  
Fei Li ◽  
Yan Chen ◽  
Yipeng Liu
Keyword(s):  
Emerging Market ◽  
Knowledge Diffusion ◽  
Emerging Countries ◽  
Diffusion Capacity ◽  
Content Type ◽  
Global Innovation ◽  
Integration Mode ◽  
Post Merger Integration ◽  
Merger Integration ◽  
The Relationship

Purpose This paper aims to examine how integration modes impact the acquirer knowledge diffusion capacity of overseas mergers and acquisitions (M&As) effected by emerging market firms and the role played by the global innovation network position of the acquiring firms in affecting this relationship. Design/methodology/approach Through the use of structural equation modelling and bootstrap testing, the hypotheses are tested by drawing upon a sample of 102 overseas M&As effected by listed Chinese manufacturing companies. Findings The results show that acquirers from emerging countries are unable to increase the knowledge diffusion capacity unless they choose the right post-merger integration mode. This paper also finds that the relationship between integration mode and knowledge diffusion is channelled through the centrality and structural holes of acquirers in the global innovation networks. When considering the combinations of different resource similarities and complementarities of the acquired firms, differences emerge in the integration model and network embedded path of acquirers in emerging countries. Practical implications Emerging market multinational enterprises should consider post-merger integration as a crucial facilitator to the crafting of global innovation network positions that promote knowledge diffusion. The choices of integration mode and brand management autonomy should be matched with the resource similarities and complementarities that exist between the acquirer and target firms. Originality/value Based on the resource orchestration theory and by focussing on network centrality and structural hole as the crucial links, this study provides a nuanced understanding of the relationship between post-merger integration and knowledge diffusion and sheds light on latecomer firms from emerging countries.

scholarly journals Knowledge Sharing Challenges during Post-Merger Integration: The Role of Boundary Spanners and of Organizational Identity

2015 ◽  
Vol 10 (11) ◽  
pp. 1 ◽  
Author(s):  
Dragos Vieru ◽  
Suzanne Rivard
Keyword(s):  
Knowledge Sharing ◽  
Organizational Identity ◽  
Boundary Spanners ◽  
Relational Dynamics ◽  
Academic Literature ◽  
Post Merger Integration ◽  
Is Integration ◽  
Integration Data ◽  
Merger Integration

<p>When organizations merge, information systems (IS) need to be integrated to span the demarcations between the previously independent entities, be to bridge the pre-merger ISs or as new, single IS. Although research stresses the important role played by ISs in support of the combined organizations, there is a paucity of studies on the process of IS integration. Grounded in the practice perspective of knowledge and on the concept of organizational identity, we first propose a conceptual framework that conjectures about effective knowledge sharing processes, boundary objects and the role that boundary spanners are expected to play if they are to be effective. Then, we assess the relational dynamics suggested by our framework in four existing case studies from the academic literature that present rich post-merger IS integration data.</p>

Post-Merger-Integration

2004 ◽  
Vol 99 (5) ◽  
pp. 239-242
Author(s):  
Eberhard Abele ◽  
Jens Elzenheimer ◽  
Markus Bundschuh
Keyword(s):  
Post Merger Integration ◽  
Merger Integration

Post Merger Integration

2014 ◽  
Author(s):  
Johannes Gerds ◽  
Gerhard Schewe
Keyword(s):  
Post Merger Integration ◽  
Merger Integration

scholarly journals Psychological contract breach and voluntary turnover among newcomers: the role of supervisor trustworthiness and negative affectivity

2021 ◽  
pp. 1-21
Author(s):  
Émilie Lapointe ◽  
Christian Vandenberghe
Keyword(s):  
Psychological Contract ◽  
Negative Affectivity ◽  
Voluntary Turnover ◽  
Three Dimensions ◽  
Psychological Contract Breach ◽  
Contract Breach ◽  
Indirect Relationship ◽  
Relationship Of ◽  
The Relationship

Abstract This article looks at the relationship between psychological contract breach and voluntary turnover among newcomers, using supervisor trustworthiness as a mediator and negative affectivity as a moderator. Relying on data from 243 newcomers, psychological contract breach was found to be negatively related to the three dimensions of supervisor trustworthiness, i.e., ability, benevolence, and integrity. Supervisor integrity further mediated a positive relationship between psychological contract breach and voluntary turnover measured 8 months later. Psychological contract breach interacted with negative affectivity such that it was less negatively related to dimensions of supervisor trustworthiness at high levels of negative affectivity. The indirect relationship of psychological contract breach to voluntary turnover as mediated by supervisor integrity was also weaker at high levels of negative affectivity. We discuss the implications of these findings for research and practice.

scholarly journals Benefits First: Consumer Trust Repair in Mobile Commerce

2021 ◽  
Vol 16 (4) ◽  
pp. 1079-1096
Author(s):  
He-Da Zhang ◽  
Shih-Chih Chen ◽  
Athapol Ruangkanjanases
Keyword(s):  
Psychological Contract ◽  
Mobile Commerce ◽  
Experimental Results ◽  
Consumer Trust ◽  
Trust Repair ◽  
Service Failures ◽  
Boomerang Effect

The purpose of this study is to explore trust repair strategies and the outcomes in mobile (m-)commerce. Consumer trust in m-commerce is a calculus-based form of trust; service failures, “inaction” and “excessive actions” are the typical trust decline situations. Three strategies of the fulfillment of consumers’ psychological contract for compensation, arousal, and regulation are proposed as trust-repaired solutions regarding the abovementioned three situations. The experimental results demonstrate that trust cannot be repaired by a single relational psychological contract strategy and that it can be repaired by both a single transactional and interactive strategy; the interactive strategy is more effective in competence-based decline. Second, in integrity-based decline, both the single and interactive strategy negatively influence trust repair; the relational strategy has the strongest effect. The “boomerang effect” shows that the more m-vendors repair, the more the trust decreases. Third, trust can be repaired, respectively by arousal and regulation strategy regarding corresponding situations of inaction and excessive actions. Finally, the trust repair paradox (TRP) has not been verified in m-commerce.

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