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

Mohini Yadav1, Mahima Thakur2, Sunil Budhiraja3

  • 1Sri Venkateswara College , New Delhi, India.

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Summary

This study developed a scale to measure post-merger identification (PMI) in hospitals, finding organizational justice and M&A potential crucial for employee outcomes like readiness to change.

Keywords:
HospitalsM&AMergerOrganizational identificationPost-merger identification

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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.