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Chapter 7 - Identification Change in Chinese Acquisitions in Europe

The Social Identity Approach

from Part III - Change in Context

Published online by Cambridge University Press:  28 September 2023

By
Anna Lupina-Wegener ,
Rolf van Dick  and
Shuang Liang
Edited by
Shaul Oreg ,
Alexandra Michel  and
Rune Todnem By
Shaul Oreg
Affiliation:
Hebrew University of Jerusalem
Alexandra Michel
Affiliation:
Universität Heidelberg
Rune Todnem By
Affiliation:
Universitet i Stavanger, Norway
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Summary

Organizational identification might become weaker when confronted with organizational changes, such as mergers and acquisitions (M&As). Identification change in M&As has received significant attention from scholars, but the extant theoretical evidence might not apply to employees involved in Chinese M&As. Indeed, cultural characteristics (e.g., dialectical thinking, collectivism, power distance) might make Chinese employees more tolerant of contradictions and ambivalence than employees in the Western hemisphere. To address this gap, we will refer to the social identity theory and the extant knowledge on identification change in cross-border M&As. We will present a framework of organizational identification change for Chinese employees after acquisition together with factors that contribute to the success of M&As. We illustrate it with the case of a Chinese acquisition in Europe: ChinaCorp and EuroMall. We theorize on the role of identity leadership wherein a leader’s behavior has a particularly strong impact on identification processes in high power distance and collectivist cultures. We will show how acts of identity leadership matter for the transfer from pre-merger to post-merger identification in the case of Chinese acquirers.

Keywords

social identity theoryorganizational identification changeChinacross-border mergers and acquisitionsidentity leadership
Type
Chapter
Information
The Psychology of Organizational Change
New Insights on the Antecedents and Consequences of Individuals' Responses to Change
 , pp. 148 - 169
Publisher: Cambridge University Press
Print publication year: 2023

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