Managers' reactions to a corporate acquisition: A test of an integrative model

Drawing upon previous theoretical and empirical work on mergers and acquisitions, survivors' reactions to layoffs, organizational stress, and perceived personal control, we proposed a structural model of managers' reactions to the acquisition of their company. The model was evaluated on the basis of survey data collected from a sample of middle-level managers (N=91) whose company was acquired through a hostile takeover by another company. Both were Fortune 500 companies. Though most variables were measured 16 months after the initial implementation phase of the merger, manifest indicators of change in job control were measured twice: at the beginning of the implementation phase and 16 months later. Mixed latent/manifest variable structural equations analyses provided results that were generally consistent with the proposed model. Implications of the results as well as suggestions for future research are discussed.