The Triggers and Types of Emotions Emerging in M&As

Abstract

This chapter digs deeper into the theory and practice of why and how emotions emerge during mergers and acquisitions (M&As). The chapter discusses emotions from a cognitive appraisal theory viewpoint, and examines them in practice through a case study of a Finnish-German acquisition where employees were invited to reflect on their emotions regarding integration. The findings suggest that acquisitions raise several emotions, both positive and negative, both in the acquiring and acquired companies. These emotions are triggered by events employees perceive as personally relevant in the workplace. The conclusions offer managers ideas on how to foster positive emotions at different organisational levels to enable smoother and swifter integration following an acquisition.

Towards a process model of emotional sensemaking in post-merger integration: linking cognitive and affective dimensions

“…Positive emotions can be triggered by opportunities for self-development such as new career prospects (Raitis et al, 2017), or by particular communication styles (Cartwright et al, 2007;Harikkala-Laihinen, 2018a;Zagelmeyer et al, 2018). On the collective level, triggers can elicit collective emotions when individuals share similarities in terms of their interpretations, identities or organisational culture (Huy, 2012;Mackie et al, 2000).…”

“…In PMI, triggers on the individual and collective level can elicit specific positive emotions (affection, happiness, pride) and negative emotions (anger, fear, shame) (Harikkala-Laihinen, 2018a). On the individual level, negative emotions tend to be triggered by rumours about restructuring and job losses and threats to social identity (Kusstatscher and Cooper, 2005;Sinkovics et al, 2011) or conflicts due to cultural differences (Ellis et al, 2012).…”

“…On the individual level, negative emotions tend to be triggered by rumours about restructuring and job losses and threats to social identity (Kusstatscher and Cooper, 2005;Sinkovics et al, 2011) or conflicts due to cultural differences (Ellis et al, 2012). Positive emotions can be triggered by opportunities for self-development such as new career prospects (Raitis et al, 2017) or by particular communication styles (Cartwright et al, 2007;Harikkala-Laihinen, 2018a;Zagelmeyer et al, 2018). On the collective level, triggers can elicit collective emotions when individuals share similarities in terms of their interpretations, identities or organisational culture (Huy, 2012;Mackie et al, 2000).…”