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Chaos and Identity Deconstruction : How Employees of Small and Midsized Companies Experience and Make Sense of Acquisitions
Werche, J. (2025) Chaos and Identity Deconstruction : How Employees of Small and Midsized Companies Experience and Make Sense of Acquisitions.
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| Abstract: | This thesis examines how employees in knowledge-intensive small and medium-sized enterprises (SMEs) experience and respond to organizational change during post-merger integration (PMI). Although financial motives of mergers and acquisitions (M&A) are well documented, people-related factors remain a major source for performance shortcomings. This study analyzes (1) how employees experience and make sense of structural change following an acquisition and (2) how these experiences shape their reactions to the changes made during the integration. It draws on the concepts of sensemaking and sensegiving, social and organizational identity, and organizational culture and analyzes how these concepts interact to shape employees’ experiences and responses. A qualitative, multiple-case design was applied. 18 semi-structured interviews were conducted with current and former entry-level employees, middle managers, and executives of 10 software SMEs that were acquired between 2021 and 2024. By analyzing and interpreting the data iteratively in an abductive approach, three reoccurring patterns emerged. First, implausible or absent sensegiving attempts led to stressful sensemaking processes, filled by negative anticipations and uncertainty. Second, employees were seen as replaceable by cost-focused acquirers, leading to knowledge drain and identity deconstruction. Third, vastly distinctive organizational cultures clashed with each other, leading to gradual disengagement and exit. The outcomes call for cultural preservation of the acquired company during post-merger integration to keep employees in knowledge-intensive working environments. Further, this research highlights the importance of thorough planning and creating a strong sensegiving narrative to avoid stressful disruptions during integration. |
| Item Type: | Essay (Bachelor) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 05 communication studies, 70 social sciences in general, 85 business administration, organizational science |
| Programme: | Communication Science BSc (56615) |
| Link to this item: | https://purl.utwente.nl/essays/107039 |
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