Employee emotional resilience during post-merger integration across national boundaries: Rewards and the mediating role of fairness norms

Abstract

This article presents a conceptual framework to advance the understanding of the process and pitfalls of post-merger integration (PMI) across national boundaries. We argue that successful PMI is contingent on employee emotional resilience, which, in turn, depends on the efficacy of reward systems and of the underlying equity. The paper documents the key role played by financial and non-financial rewards, and of reciprocal behaviors conditioned by fairness norms, on employee emotional resilience during PMI, and the impact on them of contextual dynamics. We draw out the implications for theory and practice, again taking into special account of mergers across national boundaries, and those involving multinational enterprises (MNEs).