Evolution of multiple organisational identities after an M&A: A case study from Europe

This paper examines the possible coexistence of single and multiple organisational identities of two case firms that have undergone an M&A event. In particular, it describes how the sensemaking process leads acquired and acquiring companies — a German chemical multinational and an Italian/Swiss pharmaceutical firm — to maintain multiple identities, even after the integration process has been formally completed. While many previous studies have suggested that the evolution of organisational identity reduces ambiguity by providing multiple identities under a shared commonality, this paper contribute to filling a specific gap in the body of knowledge on this topic. In details, it presents a grounded study on an acquisition in the pharmaceutical market, arguing that the choice of maintaining multiple identities may be even more appropriate. The “sense” that employees and managers give to the same “words”, as well as the “sense” that they make for them, mirror the perception they have of the Organizational Identity. The paper concludes by stating that striking a balance between single and multiple identities provides the ideal platform for building a new identity based on plurality.