ISSN : 1229-0696
This research extended the findings on the effect of merge and acquisition by applying social identity theory. Various (correlates) of merge and acquisition were investigated using 818 South Korean employees. Employees who perceive their current status to “high status” after merge and acquisition, the higher the pre-merger organizational identity and the similarity of organizational culture, the higher the post-merger organizational identity which leads to high organizational effectiveness. On the other hand, employees who perceive their current status to “low status” after merge and acquisition, the higher the pre-merger organizational identity and the similarity of organizational culture, the lower the post-merger organizational identity which leads to low organizational effectiveness.
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