Date of Conferral

2022

Degree

Ph.D.

School

Business Administration

Advisor

Michael Neubert

Abstract

Mergers and acquisitions are a popular corporate method for expanding market presence, growing resource capabilities, and increasing stockholder value. Merger and acquisition activity can be perceived by employees as a psychological contract violation (PCV) and can cause negative changes in employee attitudes. Using correlation and regression analysis, 174 survey responses were analyzed to examine the relationship between a PCV and employee job satisfaction, organizational commitment, and turnover intention caused by mergers and acquisition activity for knowledge-based roles in large nation-wide consulting firms in the United States. The second part of this study introduced a credible explanation to explore changes in the relationship between the perception of a PCV and the attitudinal outcomes. Psychological contract theory and the supporting theories of expectancy, cognitive dissonance, sense-making, and equity were applied to analyze the attitudinal outcomes. The results indicated that for every unit increase in a perceived PCV, there was a corresponding decrease of 1.945 units for job satisfaction, a decrease of .574 units of organizational commitment, and an increase of 1.411 units of turnover intention. The effects of a credible explanation as a moderator were significant for decreasing the effects of the relationship between a perceived PCV and organizational commitment (B=-.0301) and for increasing the effects of the relationship between a perceived PCV and turnover intention (B=.0129). The findings of this study may contribute to positive social change by understanding how merger and acquisition activity can affect employee attitudes and creating an awareness of how communicating a credible explanation may benefit both the employee and the organization.

Download

Share

 
COinS