Arbind Samal, Sabyasachi Patra and Devjani Chatterjee
The purpose of this paper is to examine the influence of culture on organizational readiness to change (ORC) within the context of merger and acquisition (M&A) in the banking…
Abstract
Purpose
The purpose of this paper is to examine the influence of culture on organizational readiness to change (ORC) within the context of merger and acquisition (M&A) in the banking sector in India.
Design/methodology/approach
A multisource approach is used to collect data from a public-sector bank in India for testing our hypothesis. A hierarchical approach based on higher-order modelling has been deployed for confirming the path model. The foundation of the study is based on power distance (PD) and uncertainty avoidance (UA) cultural dimensions of Hofstede (1984).
Findings
Employees in organizations with large PD and high UA index exhibit low readiness to change. Findings support a negative relationship of culture (large PD and high UA) with organizational readiness to change at the individual level.
Research limitations/implications
The study has three major implications. First, measures and importance of change readiness at the individual level during corporate events such as M&A is elucidated in the study. Second, a paradigm for assessing higher-order models grounded in theoretical and methodological rigour for testing our hypothesis is presented in the paper. Last, the role of culture in M&A processes is highlighted vis-à-vis factors related to PD and UA on ORC.
Practical implications
The findings of the research answer to the call for a study on factors that help in creating a synergy for successful M&A across all sectors especially in the banking sector. People representing high UA and large PD often look forward to direction and guidelines for guiding employee actions. Leaders therefore need to set clear agenda and effectively communicate the appropriateness of change to their employees for developing positive behaviour towards desirable organizational outcomes. This study touches upon this important perspective for its practical utilization.
Originality/value
The study adds to the limited literature on change which addresses the need for studying socio-cultural factors in the M&A process, especially in an emerging economies context.
Details
Keywords
Mridul Maheshwari, Arbind Samal and Vaibhav Bhamoriya
The purpose of this study is to explore the role of employee relations and human resource management (HRM) practices on firms' commitment to sustainability in the context of…
Abstract
Purpose
The purpose of this study is to explore the role of employee relations and human resource management (HRM) practices on firms' commitment to sustainability in the context of micro, small and medium enterprises (MSME) in India. This paper proposes a theoretical framework, namely “awareness, action, comprehensiveness, and excellence (AACE),” to present the solutions and practices as adopted by MSME firms in meeting their sustainability objectives alongside pluralistic constraints related to human resource, capital and legitimacy risk.
Design/methodology/approach
The paper employs a cross-case methodology to investigate five food processing MSME firms to understand and delineate the role of employee relations and HRM practices in driving their commitment to sustainability.
Findings
The paper discusses the status of employee relations and HRM practices as practiced by MSME firms, specifically designed to meet their agenda to strengthen their commitment to sustainability. The study proposes a framework constituting four levels, namely “awareness, action, comprehensiveness, and excellence (AACE),” that reflects HRM practices as adopted by MSME firms to develop their commitment to sustainability.
Social implications
MSMEs and food processing industries are critical to the growth of Indian economy and likewise for other emerging and developing economies. They are especially critical for their contribution to overall employment and sustainability comprising the second, third and fourth supplier links in supply chains. They have a major impact on sustainability outcomes and the life quality of employees. This paper makes a contribution in this direction.
Originality/value
The study fulfills the need to explore the role of employee relations and HRM practices to develop “commitment to sustainability” in the context of food processing MSME firms in an emerging economy of India. This paper adds an understanding of people management practices and sustainability in small firms (MSMEs), adding to the existing literature on the domain, which is mostly skewed toward large firms.