This study develops and validates a multidimensional scale of post-merger identification (PMI) through an integrative research model suited for the hospital industry. The model also examines the influence of this scale on key employee outcomes, including readiness to change, employee knowledge-sharing behavior and intention to stay in the post-merger context.
A quantitative research approach, grounded in a postpositivist paradigm, was employed to test the model on a sample of 398 employees from Indian private hospitals who had experienced Merger and Acquisition (M&A) in the last five years.
The findings elicit that seven reflective lower-order dimensions, namely (1) transformational leadership, (2) pre-merger identification, (3) sense of continuity, (4) organizational justice, (5) perceived organizational support, (6) satisfaction with HR support and (7) M&A potential, form a formative higher-order construct of PMI. Among these dimensions, Organizational Justice and M&A potential emerged as the strongest contributors to PMI and played a dominant role in linking other dimensions to PMI. Furthermore, the developed scale of PMI was found to influence significant employee outcome variables, including readiness to change, employee knowledge-sharing behavior and intention to stay.
Strengthening PMI is particularly important in hospital M&As, where unified post-merger identity supports effective collaboration, continuity of patient care and overall M&A outcomes. This study is among the first to explain PMI in hospital settings through the lenses of identity, relationships, leadership and justice. It offers novel insights into how organizational justice and M&A potential can shape identification in post-merger hospitals.
