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Research Scholar, Faculty of Management, SRM Institute of Science and Technology, Kattankulathur, Chengalpattu, Tamil Nadu, India
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Associate Professor & Programme Coordinator MBA (AIDS), Faculty of Management, SRM Institute of Science and Technology, Kattankulathur, Chengalpattu., Tamil Nadu, India
Professor & Former Dean, Faculty of Management, SRM Institute of Science and Technology, Kattankulathur, Chengalpattu, Tamil Nadu, India
Mergers and Acquisitions (M&A) have been found to be one of the major strategies used in achieving growth, innovation, and competition within the IT industry. Nonetheless, most of the previous studies have focused either on the impact of M&As from the point of view of financial performance or the perspective of employees. The current research, however, uses an integrated Structural Equation Modeling (SEM) approach in studying how organizational antecedents affect both employee and organizational resilience. Factors considered include organizational antecedents such as internal antecedents, external antecedents, competitive advantage antecedents, and firm antecedents. The study employed a cross-sectional survey that used perceptions of employees working in organizations dealing with IT and IT-enabled services in Chennai, Bangalore, Mumbai, Hyderabad, and Noida. Through a pilot study of 125 participants, the reliability of the measurement tool used in the study was validated using a Cronbach’s Alpha coefficient of 0.893. From the total of 604 collected data, only 442 valid responses were used in SEM analyses. The suggested research model tested eleven hypotheses regarding organizational antecedents, M&As, employees’ performance, and firms’ performance. The results show that firm characteristics (β = 0.46), internal factors (β = 0.40), external factors (β = 0.35), and competitive advantage factors (β = 0.35) affect M&As. In addition, M&As have a positive impact on firms’ performance (β = 0.38), whereas employee adaptability has a significant effect on firms’ performance (β = 0.41). It is worth mentioning that the direct effect of M&As on the performance of employees was
found to be insignificant (β = 0.21, p = 0.837). The results obtained from SEM analysis proved that the model had excellent fit to the collected data (χ² = 9.037, df = 6, p = 0.837; GFI = 0.996; CFI = 0.998; RMSEA = 0.034).
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