Individual Reactions to a Group Merger: An Integration of Relative Deprivation Theory and Social Identity Theory

This study examined the causes and consequences of identity problems among members of merged entities through a lens of “multiple identities, ” i.e., personal, social (pre-merger organizational), and new organizational identity. Perception of relative deprivation was considered a key contextual variable that influences members ’ multiple identities. It was hypothesized that the perceptions of relative deprivation affect multiple identities, and identity to a new merged group is positively associated with employee trust and work effort, but negatively with turnover intention. Experimental data supported strong relationships between new organizational identity and its consequences