Antecedents and Consequences of Local Employee’s Organizational Identification after cross-border M&A

Abstract

In this study, I examine the antecedents and consequences of local employee’s organizational identification after cross-border M&A using social identity theory. I suggest that the local employee’s perception of organizational justice, the opportunity to work abroad and their perceived external prestige of the company positively influence on their organizational identification towards the company. In addition, we hypothesize a negative relationship between the local employee’s organizational identification and their turnover intention. These propositions are partly supported by a test of 232 local employees in 5 branches of a post-merger organization. I also provide limitations of the study and suggestions for future research