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When Organizational Justice Matters for Affective Merger Commitment
Publikationstyp
Journal Article
Date Issued
2016-04-01
Sprache
English
Author(s)
TORE-URI
Volume
59
Issue
2
Start Page
227
End Page
241
Citation
Thunderbird International Business Review 2 (59): 227-241 (2017)
Publisher DOI
Scopus ID
Publisher
Wiley
We investigate when organizational justice matters to employees’ commitment in the postacquisition process after a company is taken over in a cross-border acquisition. Overwhelming evidence from the literature suggests that employees who are treated fairly during acquisitions are more committed to their new firms. We extend this finding by dividing organizational justice into three subdimensions: informational justice, interpersonal justice, and procedural justice. We find evidence that procedural justice is an important antecedent of affective merger commitment at an early stage of the integration period, while informational justice becomes important at a later stage. Further analysis on heterogeneity between the target firm's employees and the bidder firm's employees reveals that, immediately after the acquisition, target firm's employees value knowing where they will be at the new firm (procedural justice), while bidder firm employees are more concerned about communication and transparency (informational justice). Our results point to the importance of organizational justice in a cross-border merger and acquisition (M&A) setting and the need for a separate study of issues related to bidder firms and target firms. © 2016 Wiley Periodicals, Inc.
DDC Class
650: Management