Satisfaction with a merger, its impact on organizational commitment and turnover intentions : Canadian evidence

Abstract

This study was conducted to examine the impact employee post-merger satisfaction has on employee organizational commitment and turnover intentions. Employees of a Canadian financial institution (N=73) completed surveys approximately seven months after a merger between two comparably sized banks. Partial Least Squares (PLS) approach to structural equation modeling (SEM) (e.g., Wold, 1982) provided evidence for the relationship between satisfaction with a merger and the affective and normative components of organizational commitment. Support was also found for the hypotheses that proposed that affective and normative commitments are negatively correlated with turnover intentions. The implications of these relationships are offered. Limitations of the study and directions for future research are also included.