Title: Evidence from the Indian banking industry on the impact of communication on behavioural outcomes following mergers

Authors: Sikha Sadani; Chandana Goswami

Addresses: Department of Business Administration, School of Management Sciences, Tezpur University, Napaam, Tezpur, Assam – 784028, India ' Department of Business Administration, School of Management Sciences, Tezpur University, Napaam, Tezpur, Assam – 784028, India

Abstract: The human side of mergers and acquisitions (M&A) is extremely challenging. Inadequate information may increase anxiety and tension among employees. Thus, adequate awareness and communication are crucial throughout the merger process. The study examines communication and awareness during the merger process and its relationship with the behavioural outcomes using four merger cases involving ten public sector banks in India. The four behavioural outcomes studied are - stress, satisfaction, job commitment and attitude towards merger among employees. Data from 300 employees were investigated using various statistical tools. Empirical findings revealed significant differences in anchor and amalgamating banks in relation to outcomes across the merger cases. Negative relationship of communication with stress was found, whereas positive relationship with remaining outcomes of merger was found. The present study will help management in creating and putting into practise policies for using effective communication to make the merger successful.

Keywords: communication; merger; acquisitions; India; banking sector; employees; stress; satisfaction; commitment; attitude; amalgamation.

DOI: 10.1504/IJWI.2023.134987

International Journal of Work Innovation, 2023 Vol.4 No.4, pp.338 - 355

Received: 21 Apr 2023
Accepted: 18 Jun 2023
Published online: 23 Nov 2023 *

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