Main Article Content
Abstract
Purpose: This study explores the communication challenges involved in employee management during mergers and acquisitions (M&A) and their impact on employee turnover. It investigates how communication strategies, leadership approaches, and cultural factors influence employee engagement, trust, and retention during organizational transitions.
Research Design and Methodology: A systematic literature review (SLR) approach synthesized findings from recent empirical studies and theoretical contributions related to communication management and employee retention during M&A. The study examined scholarly articles and case studies published between 2018 and 2024 to identify key themes and trends. Social Exchange Theory (SET) served as the theoretical framework to interpret the dynamics of employee-organization relationships in M&A contexts.
Findings and Discussion: The findings reveal that communication barriers, such as unclear role definitions, delayed information dissemination, and inconsistent messaging, contribute to heightened employee uncertainty and turnover risks. Conversely, transparent and participatory communication, supported by empathetic leadership, fosters trust, reduces anxiety and enhances employee engagement. The study underscores the importance of involving employees in decision-making to strengthen their sense of belonging and organizational commitment. Comparisons with previous research highlight the need for an integrated communication approach that addresses structural and cultural challenges during M&A integration.
Implications: This research provides practical insights for organizational leaders by recommending structured communication frameworks, leadership communication training, and implementing open feedback channels. These strategies can enhance post-merger integration, strengthen employee trust, and reduce turnover. Additionally, this study highlights the importance of further empirical research to validate findings across different organizational contexts and cultural settings.
Keywords
Article Details

This work is licensed under a Creative Commons Attribution 4.0 International License.
References
- Al Naeemy, T. M. Y. (2020). Consequences of Mergers and Acquisitions and Their Effect on Employees: A Case Study from the Banking Industry in the UAE BT - Human Capital in the Middle East: A UAE Perspective (V. Pereira, M. Neal, Y. Temouri, & W. Qureshi (eds.); pp. 179–223). Springer International Publishing. https://doi.org/10.1007/978-3-030-42211-0_8
- Ali, M., Niu, X., & Rubel, M. R. B. (2024). The influence of transformational and transactional leadership on employee retention: mediating role of employee engagement. Management Matters, 21(2), 164–190. https://doi.org/10.1108/MANM-03-2024-0022
- Asdar, M. (2023). Strategies for Managing Employees during Mergers and Acquisitions. Advances in Human Resource Management Research, 1(3), 114–125. https://doi.org/10.60079/ahrmr.v1i3.200
- Balle, N. (2008). Hearts at stake. Corporate Communications: An International Journal, 13(1), 56–67. https://doi.org/10.1108/13563280810848193
- Bao, Z., & Han, Z. (2019). What drives users’ participation in online social Q&A communities? An empirical study based on social cognitive theory. Aslib Journal of Information Management, 71(5), 637–656. https://doi.org/10.1108/AJIM-01-2019-0002
- Bhat, M. A., Tariq Khan, S., & Rainayee, R. A. (2023). Assessment of perceived labor market conditions in employees’ turnover intention model – mediation and moderation analyzes. PSU Research Review, 7(1), 1–32. https://doi.org/10.1108/PRR-05-2020-0017
- Boccoli, G., Gastaldi, L., & Corso, M. (2024). Transformational leadership and work engagement in remote work settings: the moderating role of the supervisor’s digital communication skills. Leadership & Organization Development Journal, 45(7), 1240–1257. https://doi.org/10.1108/LODJ-09-2023-0490
- Bryant, W., & Merritt, S. M. (2021). Unethical Pro-organizational Behavior and Positive Leader–Employee Relationships. Journal of Business Ethics, 168(4), 777–793. https://doi.org/10.1007/s10551-019-04211-x
- Budhiraja, S., Thakur, M., & Yadav, M. (2024). Leveraging human resource management practices during mergers and acquisitions: a bibliometric analysis and future research agenda. Benchmarking: An International Journal, 31(7), 2439–2468. https://doi.org/10.1108/BIJ-11-2022-0696
- Buono, A. F., & Bowditch, J. L. (2003). The human side of mergers and acquisitions: Managing collisions between people, cultures, and organizations. Beard Books.
- Chang-Howe, W. (2019). The challenge of HR integration: a review of the M&A HR integration literature. Journal of Chinese Human Resource Management, 10(1/2), 19–34. https://doi.org/10.1108/JCHRM-03-2019-0009
- Cowan, D. (2017). Strategic internal communication: how to build employee engagement and performance. Kogan Page Publishers.
- Cropanzano, R., & Mitchell, M. S. (2005). Social exchange theory: An interdisciplinary review. Journal of Management, 31(6), 874–900. https://doi.org/10.1177/0149206305279602
- Farzana, S., & Charoensukmongkol, P. (2024). Effects of transformational leadership on psychological empowerment and employee engagement: a comparative study of Bangladesh and Thailand. Journal of Asia Business Studies, 18(4), 1094–1113. https://doi.org/10.1108/JABS-07-2023-0256
- Galan, N. (2023). Knowledge loss induced by organizational member turnover: a review of empirical literature, synthesis and future research directions (Part I). The Learning Organization, 30(2), 117–136. https://doi.org/10.1108/TLO-09-2022-0107
- Goecke, T., Michaelis, B., & Schweizer, L. (2018). Retention Strategies in M&A Processes – An Exploratory Case Study on Turnover During Mergers and Acquisitions in the German Software Industry. In S. Finkelstein & C. L. Cooper (Eds.), Advances in Mergers and Acquisitions (Vol. 17, pp. 165–184). Emerald Publishing Limited. https://doi.org/10.1108/S1479-361X20180000017008
- Hildisch, A. K., Froese, F. J., & Pak, Y. S. (2015). Employee responses to a cross-border acquisition in South Korea: The role of social support from different hierarchical levels. Asian Business & Management, 14(4), 327–347. https://doi.org/10.1057/abm.2015.12
- Irwin, K., & Willis, C. H. (2023). The Reciprocal Relationship Between M&A Strategic Decision-making and Well-being. In P. D. Harms & C.-H. (Daisy) Chang (Eds.), Stress and Well-being at the Strategic Level (Vol. 21, pp. 17–43). Emerald Publishing Limited. https://doi.org/10.1108/S1479-355520230000021002
- Jorge Correia de Sousa, M., & van Dierendonck, D. (2014). Servant leadership and engagement in a merge process under high uncertainty. Journal of Organizational Change Management, 27(6), 877–899. https://doi.org/10.1108/JOCM-07-2013-0133
- Junça Silva, A., & Rodrigues, R. (2024). Affective mechanisms linking role ambiguity to employee turnover. International Journal of Organizational Analysis, 32(11), 1–18. https://doi.org/10.1108/IJOA-08-2023-3891
- Kasdorf, R. L., & Kayaalp, A. (2022). Employee career development and turnover: a moderated mediation model. International Journal of Organizational Analysis, 30(2), 324–339. https://doi.org/10.1108/IJOA-09-2020-2416
- Kempton, B., & Sarala, R. M. (2021). Employee Perspective on Mergers and Acquisitions (M&As): A State-of-the-art Literature Review and Synthesis. In C. L. Cooper & S. Finkelstein (Eds.), Advances in Mergers and Acquisitions (Vol. 20, pp. 81–98). Emerald Publishing Limited. https://doi.org/10.1108/S1479-361X20210000020007
- Lim, K. (2021). Investigating the dynamics of actors’ formal and informal organizational change communication during mergers and acquisitions. https://doi.org/10.7488/era/1481
- March, K. G., Aplin-Houtz, M. J., Lawrence, U. E., Lane, E. N., & Meriac, J. (2023). Mutual Benefits: Delving into Leader-Member Exchange (LMX) and Pay Dynamics with Social Exchange Theory. Employee Responsibilities and Rights Journal. https://doi.org/10.1007/s10672-023-09490-1
- Meira, J. V. de S., & Hancer, M. (2021). Using the social exchange theory to explore the employee-organization relationship in the hospitality industry. International Journal of Contemporary Hospitality Management, 33(2), 670–692. https://doi.org/10.1108/IJCHM-06-2020-0538
- Mohammed Abdulrab, Abdul Rahim Zumrah, Qais Almaamari, Ali Nasser Al-Tahitah, Osama Isaac, & Ali Ameen. (2018). The Role Of Psychological Empowerment As A Mediating Variable Between Perceived Organizational Support And Organizational Citizenship Behaviour In Malaysian Higher Education Institutions. International Journal of Management and Human Science (IJMHS), 2(3 SE-), 1–14. https://ejournal.lucp.net/index.php/ijmhs/article/view/812
- Poudel, O., Rijal, U., & Acharya, P. (2024). Optimizing Employee Engagement Post Mergers and Acquisitions in Nepalese Commercial Banks: A Comprehensive Examination of Key Influencing Factors. Contemporary Research: An Interdisciplinary Academic Journal, 7(2), 196–216. https://doi.org/10.3126/craiaj.v7i2.72167
- Priyanka, Khera, S. N., & Suri, P. K. (2024). Towards crafting a cure for employee turnover: a social exchange theory perspective. Industrial and Commercial Training, 56(4), 434–448. https://doi.org/10.1108/ICT-03-2024-0020
- Rosendale, J., Wilkie, L., & Lowry, W. (2024). On strategic communication during mergers & acquisitions: a pragmatic perspective to improve outcomes. Development and Learning in Organizations: An International Journal, 38(5), 1–4. https://doi.org/10.1108/DLO-10-2023-0226
- Ruppel, C., Stranzl, J., & Einwiller, S. (2022). Employee-centric perspective on organizational crisis: how organizational transparency and support help to mitigate employees’ uncertainty, negative emotions and job disengagement. Corporate Communications: An International Journal, 27(5), 1–22. https://doi.org/10.1108/CCIJ-04-2022-0045
- Schulz-Knappe, C., Koch, T., & Beckert, J. (2019). The importance of communicating change. Corporate Communications: An International Journal, 24(4), 670–685. https://doi.org/10.1108/CCIJ-04-2019-0039
- Sharma, M., Rajput, D. M. S., & Nair, D. V. (2023). Employees‟ Attitude towards Merger and Acquisition. International Journal of Science and Research (IJSR), 12(10), 479–483. https://doi.org/10.2139/ssrn.3596806
- Slåtten, T., Svensson, G., & Sværi, S. (2011). Service quality and turnover intentions as perceived by employees. Personnel Review, 40(2), 205–221. https://doi.org/10.1108/00483481111106084
- Soontornchaiya, P., & Charoensukmongkol, P. (2024). Interaction effect of management communication and workplace formalization on shared goals and commitment of employees during post-merger and acquisition integration. International Journal of Business Communication, 23294884241235660. https://doi.org/10.1177/23294884241235661
- Sun, A. (2024). Talent Management and Organizational Change in Corporate Mergers and Acquisitions. Frontiers in Business, Economics and Management, 12(3), 99–102. https://doi.org/10.54097/dcjd4ghk
- Thomas, M., Durand, M., Hassan, M., & Tabourier, M. (2024). Talent management through speed with dexterity: the postacquisition integration strategy of Celgene by Bristol Myers Squibb. Strategic HR Review. https://doi.org/10.1108/shr-04-2024-0030
- Umrani, W. A., Siyal, S., Al Riyami, S., Memon, M. A., & Siyal, A. W. (2024). Inclusive leadership and innovative work behaviours: social exchange perspective. Current Psychology, 43(30), 24774–24788. https://doi.org/10.1007/s12144-024-06192-1
- Wang, T., Long, L., Zhang, Y., & He, W. (2019). A Social Exchange Perspective of Employee–Organization Relationships and Employee Unethical Pro-organizational Behavior: The Moderating Role of Individual Moral Identity. Journal of Business Ethics, 159(2), 473–489. https://doi.org/10.1007/s10551-018-3782-9
- Yue, C. A., Men, L. R., & Ferguson, M. A. (2019). Bridging transformational leadership, transparent communication, and employee openness to change: The mediating role of trust. Public Relations Review, 45(3), 101779. https://doi.org/https://doi.org/10.1016/j.pubrev.2019.04.012
- Yue, C. A., Thelen, P. D., & Walden, J. (2023). How empathetic leadership communication mitigates employees’ turnover intention during COVID-19-related organizational change. Management Decision, 61(5), 1413–1433. https://doi.org/10.1108/MD-01-2022-0011
- Zafar, S., Raziq, M. M., Igoe, J., Moazzam, M., & Ozturk, I. (2024). Inclusive leadership and innovative work behavior: roles of autonomous motivation and horizontal and vertical trust. Current Psychology, 43(14), 12680–12695. https://doi.org/10.1007/s12144-023-05386-3
- Zainab, B., Akbar, W., & Siddiqui, F. (2022). Impact of transformational leadership and transparent communication on employee openness to change: mediating role of employee organization trust and moderated role of change-related self-efficacy. Leadership & Organization Development Journal, 43(1), 1–13. https://doi.org/10.1108/LODJ-08-2020-0355
References
Al Naeemy, T. M. Y. (2020). Consequences of Mergers and Acquisitions and Their Effect on Employees: A Case Study from the Banking Industry in the UAE BT - Human Capital in the Middle East: A UAE Perspective (V. Pereira, M. Neal, Y. Temouri, & W. Qureshi (eds.); pp. 179–223). Springer International Publishing. https://doi.org/10.1007/978-3-030-42211-0_8
Ali, M., Niu, X., & Rubel, M. R. B. (2024). The influence of transformational and transactional leadership on employee retention: mediating role of employee engagement. Management Matters, 21(2), 164–190. https://doi.org/10.1108/MANM-03-2024-0022
Asdar, M. (2023). Strategies for Managing Employees during Mergers and Acquisitions. Advances in Human Resource Management Research, 1(3), 114–125. https://doi.org/10.60079/ahrmr.v1i3.200
Balle, N. (2008). Hearts at stake. Corporate Communications: An International Journal, 13(1), 56–67. https://doi.org/10.1108/13563280810848193
Bao, Z., & Han, Z. (2019). What drives users’ participation in online social Q&A communities? An empirical study based on social cognitive theory. Aslib Journal of Information Management, 71(5), 637–656. https://doi.org/10.1108/AJIM-01-2019-0002
Bhat, M. A., Tariq Khan, S., & Rainayee, R. A. (2023). Assessment of perceived labor market conditions in employees’ turnover intention model – mediation and moderation analyzes. PSU Research Review, 7(1), 1–32. https://doi.org/10.1108/PRR-05-2020-0017
Boccoli, G., Gastaldi, L., & Corso, M. (2024). Transformational leadership and work engagement in remote work settings: the moderating role of the supervisor’s digital communication skills. Leadership & Organization Development Journal, 45(7), 1240–1257. https://doi.org/10.1108/LODJ-09-2023-0490
Bryant, W., & Merritt, S. M. (2021). Unethical Pro-organizational Behavior and Positive Leader–Employee Relationships. Journal of Business Ethics, 168(4), 777–793. https://doi.org/10.1007/s10551-019-04211-x
Budhiraja, S., Thakur, M., & Yadav, M. (2024). Leveraging human resource management practices during mergers and acquisitions: a bibliometric analysis and future research agenda. Benchmarking: An International Journal, 31(7), 2439–2468. https://doi.org/10.1108/BIJ-11-2022-0696
Buono, A. F., & Bowditch, J. L. (2003). The human side of mergers and acquisitions: Managing collisions between people, cultures, and organizations. Beard Books.
Chang-Howe, W. (2019). The challenge of HR integration: a review of the M&A HR integration literature. Journal of Chinese Human Resource Management, 10(1/2), 19–34. https://doi.org/10.1108/JCHRM-03-2019-0009
Cowan, D. (2017). Strategic internal communication: how to build employee engagement and performance. Kogan Page Publishers.
Cropanzano, R., & Mitchell, M. S. (2005). Social exchange theory: An interdisciplinary review. Journal of Management, 31(6), 874–900. https://doi.org/10.1177/0149206305279602
Farzana, S., & Charoensukmongkol, P. (2024). Effects of transformational leadership on psychological empowerment and employee engagement: a comparative study of Bangladesh and Thailand. Journal of Asia Business Studies, 18(4), 1094–1113. https://doi.org/10.1108/JABS-07-2023-0256
Galan, N. (2023). Knowledge loss induced by organizational member turnover: a review of empirical literature, synthesis and future research directions (Part I). The Learning Organization, 30(2), 117–136. https://doi.org/10.1108/TLO-09-2022-0107
Goecke, T., Michaelis, B., & Schweizer, L. (2018). Retention Strategies in M&A Processes – An Exploratory Case Study on Turnover During Mergers and Acquisitions in the German Software Industry. In S. Finkelstein & C. L. Cooper (Eds.), Advances in Mergers and Acquisitions (Vol. 17, pp. 165–184). Emerald Publishing Limited. https://doi.org/10.1108/S1479-361X20180000017008
Hildisch, A. K., Froese, F. J., & Pak, Y. S. (2015). Employee responses to a cross-border acquisition in South Korea: The role of social support from different hierarchical levels. Asian Business & Management, 14(4), 327–347. https://doi.org/10.1057/abm.2015.12
Irwin, K., & Willis, C. H. (2023). The Reciprocal Relationship Between M&A Strategic Decision-making and Well-being. In P. D. Harms & C.-H. (Daisy) Chang (Eds.), Stress and Well-being at the Strategic Level (Vol. 21, pp. 17–43). Emerald Publishing Limited. https://doi.org/10.1108/S1479-355520230000021002
Jorge Correia de Sousa, M., & van Dierendonck, D. (2014). Servant leadership and engagement in a merge process under high uncertainty. Journal of Organizational Change Management, 27(6), 877–899. https://doi.org/10.1108/JOCM-07-2013-0133
Junça Silva, A., & Rodrigues, R. (2024). Affective mechanisms linking role ambiguity to employee turnover. International Journal of Organizational Analysis, 32(11), 1–18. https://doi.org/10.1108/IJOA-08-2023-3891
Kasdorf, R. L., & Kayaalp, A. (2022). Employee career development and turnover: a moderated mediation model. International Journal of Organizational Analysis, 30(2), 324–339. https://doi.org/10.1108/IJOA-09-2020-2416
Kempton, B., & Sarala, R. M. (2021). Employee Perspective on Mergers and Acquisitions (M&As): A State-of-the-art Literature Review and Synthesis. In C. L. Cooper & S. Finkelstein (Eds.), Advances in Mergers and Acquisitions (Vol. 20, pp. 81–98). Emerald Publishing Limited. https://doi.org/10.1108/S1479-361X20210000020007
Lim, K. (2021). Investigating the dynamics of actors’ formal and informal organizational change communication during mergers and acquisitions. https://doi.org/10.7488/era/1481
March, K. G., Aplin-Houtz, M. J., Lawrence, U. E., Lane, E. N., & Meriac, J. (2023). Mutual Benefits: Delving into Leader-Member Exchange (LMX) and Pay Dynamics with Social Exchange Theory. Employee Responsibilities and Rights Journal. https://doi.org/10.1007/s10672-023-09490-1
Meira, J. V. de S., & Hancer, M. (2021). Using the social exchange theory to explore the employee-organization relationship in the hospitality industry. International Journal of Contemporary Hospitality Management, 33(2), 670–692. https://doi.org/10.1108/IJCHM-06-2020-0538
Mohammed Abdulrab, Abdul Rahim Zumrah, Qais Almaamari, Ali Nasser Al-Tahitah, Osama Isaac, & Ali Ameen. (2018). The Role Of Psychological Empowerment As A Mediating Variable Between Perceived Organizational Support And Organizational Citizenship Behaviour In Malaysian Higher Education Institutions. International Journal of Management and Human Science (IJMHS), 2(3 SE-), 1–14. https://ejournal.lucp.net/index.php/ijmhs/article/view/812
Poudel, O., Rijal, U., & Acharya, P. (2024). Optimizing Employee Engagement Post Mergers and Acquisitions in Nepalese Commercial Banks: A Comprehensive Examination of Key Influencing Factors. Contemporary Research: An Interdisciplinary Academic Journal, 7(2), 196–216. https://doi.org/10.3126/craiaj.v7i2.72167
Priyanka, Khera, S. N., & Suri, P. K. (2024). Towards crafting a cure for employee turnover: a social exchange theory perspective. Industrial and Commercial Training, 56(4), 434–448. https://doi.org/10.1108/ICT-03-2024-0020
Rosendale, J., Wilkie, L., & Lowry, W. (2024). On strategic communication during mergers & acquisitions: a pragmatic perspective to improve outcomes. Development and Learning in Organizations: An International Journal, 38(5), 1–4. https://doi.org/10.1108/DLO-10-2023-0226
Ruppel, C., Stranzl, J., & Einwiller, S. (2022). Employee-centric perspective on organizational crisis: how organizational transparency and support help to mitigate employees’ uncertainty, negative emotions and job disengagement. Corporate Communications: An International Journal, 27(5), 1–22. https://doi.org/10.1108/CCIJ-04-2022-0045
Schulz-Knappe, C., Koch, T., & Beckert, J. (2019). The importance of communicating change. Corporate Communications: An International Journal, 24(4), 670–685. https://doi.org/10.1108/CCIJ-04-2019-0039
Sharma, M., Rajput, D. M. S., & Nair, D. V. (2023). Employees‟ Attitude towards Merger and Acquisition. International Journal of Science and Research (IJSR), 12(10), 479–483. https://doi.org/10.2139/ssrn.3596806
Slåtten, T., Svensson, G., & Sværi, S. (2011). Service quality and turnover intentions as perceived by employees. Personnel Review, 40(2), 205–221. https://doi.org/10.1108/00483481111106084
Soontornchaiya, P., & Charoensukmongkol, P. (2024). Interaction effect of management communication and workplace formalization on shared goals and commitment of employees during post-merger and acquisition integration. International Journal of Business Communication, 23294884241235660. https://doi.org/10.1177/23294884241235661
Sun, A. (2024). Talent Management and Organizational Change in Corporate Mergers and Acquisitions. Frontiers in Business, Economics and Management, 12(3), 99–102. https://doi.org/10.54097/dcjd4ghk
Thomas, M., Durand, M., Hassan, M., & Tabourier, M. (2024). Talent management through speed with dexterity: the postacquisition integration strategy of Celgene by Bristol Myers Squibb. Strategic HR Review. https://doi.org/10.1108/shr-04-2024-0030
Umrani, W. A., Siyal, S., Al Riyami, S., Memon, M. A., & Siyal, A. W. (2024). Inclusive leadership and innovative work behaviours: social exchange perspective. Current Psychology, 43(30), 24774–24788. https://doi.org/10.1007/s12144-024-06192-1
Wang, T., Long, L., Zhang, Y., & He, W. (2019). A Social Exchange Perspective of Employee–Organization Relationships and Employee Unethical Pro-organizational Behavior: The Moderating Role of Individual Moral Identity. Journal of Business Ethics, 159(2), 473–489. https://doi.org/10.1007/s10551-018-3782-9
Yue, C. A., Men, L. R., & Ferguson, M. A. (2019). Bridging transformational leadership, transparent communication, and employee openness to change: The mediating role of trust. Public Relations Review, 45(3), 101779. https://doi.org/https://doi.org/10.1016/j.pubrev.2019.04.012
Yue, C. A., Thelen, P. D., & Walden, J. (2023). How empathetic leadership communication mitigates employees’ turnover intention during COVID-19-related organizational change. Management Decision, 61(5), 1413–1433. https://doi.org/10.1108/MD-01-2022-0011
Zafar, S., Raziq, M. M., Igoe, J., Moazzam, M., & Ozturk, I. (2024). Inclusive leadership and innovative work behavior: roles of autonomous motivation and horizontal and vertical trust. Current Psychology, 43(14), 12680–12695. https://doi.org/10.1007/s12144-023-05386-3
Zainab, B., Akbar, W., & Siddiqui, F. (2022). Impact of transformational leadership and transparent communication on employee openness to change: mediating role of employee organization trust and moderated role of change-related self-efficacy. Leadership & Organization Development Journal, 43(1), 1–13. https://doi.org/10.1108/LODJ-08-2020-0355