The Impact of Mergers and Acquisitions on the Sales Force

The academic paper examines the causal effect of mergers and acquisitions (M&As) involving a mismatch of external images on a firm's sales force, drawing on social identity theory. Through two studies—a natural longitudinal experiment and a scenario-based experiment—the researchers found that a merger with a poorer-image firm immediately weakens salespeople's organizational identification (OI), subsequently impairing their performance. This adverse effect is attributed to image uncertainty rather than job uncertainty, with the OI dilution effect being stronger than any OI enhancement from merging with a better-image firm. The study also identifies boundary conditions, noting that longer-tenured salespeople experience stronger OI dilution, while a managerial emphasis on strategic intent can buffer the negative effect, whereas emphasizing organizational culture can aggravate it.