Multiple organizational identities and change in ambivalence: the case of a Chinese acquisition in Europe

Abstract

Purpose: Building on social identity theory, the purpose of this paper is to examine how European managers construct their multiple identities after being acquired by a Chinese firm and to determine the key factors contributing to the changing dynamics of multiple organizational identities. Design/methodology/approach: The paper presents a qualitative, single case study of a Chinese acquisition of a European manufacturing firm at two points in time. Findings: We find that multiple identities initially trigger ambivalence toward the acquisition, but over time, the ambivalence diminishes. The reduction of ambivalence results from concurrent integration and separation: a newly constructed boundary spanning the organization separates positive identities from negative ones, and integration interventions foster the development of a new, shared identity. Originality/value: The findings reveal that organizational identity change is facilitated by the aligning of a post-merger identity with the acquired organization's historical identity and by creating an ambivalent boundary spanning identity.