Employee responses to acquisitions: evidence from Greek firms

The purpose of this paper is to examine the factors affecting the course of action that employees in acquired firms choose to follow. Loyalty, compliance, voice and neglect (LCVN) are four employee behaviors in acquired companies.

Two questionnaires were designed: one was administered to employees of the acquired company and the other to a member of the post‐acquisition managerial team. One hundred and thirty‐five administrative employees in 27 acquired companies in Greece participated in the research.

The results of the study support that employees decide their course of action based on the cost of their action, the effectiveness of the behaviour and the attractiveness of the company.

This study concentrated at the individual level to examine the factors affecting employee behaviours. Future research is needed to examine behavioural changes over time and the factors that make employees move from one behavioural category to the other.

The findings in the paper have implications for organization members facing the challenge of managing human issues in the sensitive phases of an acquisition. Evidence of specific behavioural responses and the factors affecting them is presented.

The present study provides a model for understanding the complex and multiple behavioral choices employees have after an acquisition.