Developing a multidimensional scale of post-merger identification (PMI) for hospitals

Area of Science:

• Organizational Behavior
• Healthcare Management
• Human Resource Management

Background:

• Mergers and Acquisitions (M&A) in the hospital industry present unique challenges for employee integration.
• Establishing a unified post-merger identity (PMI) is critical for successful M&A integration and employee retention.

Purpose of the Study:

• To develop and validate a multidimensional scale for measuring post-merger identification (PMI) within the hospital sector.
• To examine the impact of PMI on employee readiness to change, knowledge-sharing behavior, and intention to stay.

Main Methods:

• A quantitative research approach was utilized, employing a postpositivist paradigm.
• The study surveyed 398 employees from Indian private hospitals that had undergone M&A within the last five years.

Main Results:

• A seven-dimensional scale for PMI was validated, with organizational justice and M&A potential identified as key drivers.
• The developed PMI scale significantly influenced employee readiness to change, knowledge-sharing behavior, and intention to stay.

Conclusions:

• Enhancing PMI is vital for hospital M&As to foster collaboration, ensure patient care continuity, and achieve successful integration.
• Organizational justice and M&A potential are identified as significant factors shaping post-merger identification in healthcare settings.