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The impact of psychological ownership on employee retention in mergers and acquisitions

The impact of psychological ownership on employee retention in mergers and acquisitions
The impact of psychological ownership on employee retention in mergers and acquisitions
Research has demonstrated that turnover rates among employees and executives in the acquired firm are much higher during an M&A event. Recent empirical and review articles on M&A have also shown that employee retention/turnover can best be understood by looking at psychological attributes and perceptions of M&As, thus drawing significant attention to the psychological and ‘human’ side voids to theoretically exploit and enhance understanding of people-related problems in M&A endeavors. In this article, we develop a moderated mediation model and propose that acquired firm employees' psychological ownership is positively related to acquired firm employees' retention through the direct and mediating effects of employees' commitment and involvement in M&A. We also propose that the effect of acquired firm employees' psychological ownership on employees' commitment and involvement and, ultimately, acquired firm employees' retention is moderated by loss of acquired firm autonomy. We also discuss implications for theory and practice, as well as future research directions of such an employees' psychological ownership perspective on retention effects.
Commitment & Involvement, Employee, Mergers & Acquisitions, Psychological ownership, Retention/turnover
1053-4822
Degbey, William
08c6b4fb-ff8c-4d55-9868-3b2ffec20000
Rodgers, Peter
78e39552-3d65-4b44-b0e1-10043ba3ff5d
Kromah, Momo
298dfd4f-a29f-4adb-823a-70a0eb8c0c19
Weber, Yaakov
f427d81b-73bf-4307-92e2-7091b67bc96d
Degbey, William
08c6b4fb-ff8c-4d55-9868-3b2ffec20000
Rodgers, Peter
78e39552-3d65-4b44-b0e1-10043ba3ff5d
Kromah, Momo
298dfd4f-a29f-4adb-823a-70a0eb8c0c19
Weber, Yaakov
f427d81b-73bf-4307-92e2-7091b67bc96d

Degbey, William, Rodgers, Peter, Kromah, Momo and Weber, Yaakov (2020) The impact of psychological ownership on employee retention in mergers and acquisitions. Human Resource Management Review, [100745]. (doi:10.1016/j.hrmr.2020.100745).

Record type: Article

Abstract

Research has demonstrated that turnover rates among employees and executives in the acquired firm are much higher during an M&A event. Recent empirical and review articles on M&A have also shown that employee retention/turnover can best be understood by looking at psychological attributes and perceptions of M&As, thus drawing significant attention to the psychological and ‘human’ side voids to theoretically exploit and enhance understanding of people-related problems in M&A endeavors. In this article, we develop a moderated mediation model and propose that acquired firm employees' psychological ownership is positively related to acquired firm employees' retention through the direct and mediating effects of employees' commitment and involvement in M&A. We also propose that the effect of acquired firm employees' psychological ownership on employees' commitment and involvement and, ultimately, acquired firm employees' retention is moderated by loss of acquired firm autonomy. We also discuss implications for theory and practice, as well as future research directions of such an employees' psychological ownership perspective on retention effects.

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Accepted/In Press date: 1 January 2020
e-pub ahead of print date: 13 January 2020
Keywords: Commitment & Involvement, Employee, Mergers & Acquisitions, Psychological ownership, Retention/turnover

Identifiers

Local EPrints ID: 442406
URI: http://eprints.soton.ac.uk/id/eprint/442406
ISSN: 1053-4822
PURE UUID: bd6850fa-2543-4931-b1fe-d38c357a7fd9

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Date deposited: 14 Jul 2020 16:38
Last modified: 12 Jan 2022 05:01

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Contributors

Author: William Degbey
Author: Peter Rodgers
Author: Momo Kromah
Author: Yaakov Weber

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