Individual Reactions to a Group Merger: An Integration of Relative Deprivation Theory and Social Identity Theory

Abstract

This study examined the causes and consequences of identity

problems among members of merged entities through a lens of multiple

identities, i.e., personal, social (pre-merger organizational), and new

organizational identity. Perception of relative deprivation was considered

a key contextual variable that influences members multiple identities. It

was hypothesized that the perceptions of relative deprivation affect

multiple identities, and identity to a new merged group is positively

associated with employee trust and work effort, but negatively with

turnover intention. Experimental data supported strong relationships

between new organizational identity and its consequences.