China/Europe and the Changing Global Order Seminar Series

Abstract

Mergers and acquisitions (M&As) represent significant organizational changes and have the potential to disrupt and threaten employees’ sense of organizational identity and identification. Managing post-acquisition identification is particularly challenging when latecomer firms from emerging markets make acquisitions in the developed markets because of their lack of experience, credibility, and legitimacy. Despite the surge in Chinese overseas acquisitions in the last two decades, we know little about how identity transition is managed in this context. Drawing upon a sensemaking perspective, and based on a qualitative case study of two Chinese acquisitions in the UK, this paper explores two distinctive, contrasting identification paths shaped by a series of ‘episodes’ of emotional sensemaking taking place at the post-acquisition stage. The paper advances the understanding of the ‘irrational’ side of post-acquisition identification, focusing on the mediating role of pride and prejudice. The findings may help decode the emotional sensemaking processes at work in organizations following on an acquisition.