How Does Relative Deprivation Influence Employee Intention to Leave a Merged Company? The Role of Organizational Identification

Abstract

Recognizing the importance of postmerger integration from a human resource management perspective, this study explores the relationship between employee perceptions of relative deprivation during a merger and acquisition (M&A) process and their turnover intentions. Drawing on social identity theory, we investigate whether the relationship between relative deprivation and turnover intention can be mediated by employee organizational identification. The results, based on a two-phase survey of 222 employees in a merged Korean company, show that egoistic relative deprivation, defined as people's feelings of deprivation due to their dissatisfaction with their position as an individual, predicts employee turnover intention. Moreover, employee identification with the postmerger organization was found to fully mediate the relationship between egoistic relative deprivation and turnover intention. The article concludes with theoretical contributions, practical implications, and future research directions. (c) 2014 Wiley Periodicals, Inc.