THE IMPACT OF TRUST ON LEADERSHIP DURING MERGERS AND ACQUISITIONS: CASE STUDIES FROM THE INDIAN TELECOM SECTOR
Keywords:Telecom, Trust, Mergers, Estrangement, Organization
Managing employees’ trust on the organization, during mergers and acquisitions is definitely a critical leadership challenge in today’s global environment. Prior leadership research has been an evidence of how a leader communicates during a downsizing event with the employees who would be expected to feel more vulnerable can create the foundation for future trust in the leader. (Kasper-Feuhre and Ashkanasy, 2001). This paper explores the dynamics of trust during post-merger and acquisition integration planning in the Indian Telecom Sector. This study is purely doctrinal in nature, focusing on secondary sources which helps in examining major mergers in the telecom Industry in India namely Vodafone-Hutchison Essar Merger in 2007, Idea and Spice Telecom merger in 2008, Reliance Industries and Infotel merger in 2010, Vodafone and Idea Merger, Bharti Airtel and Telenor Merger, Tata Teleservices and Bharti Airtel merger. The objective behind the study of these mergers is to understand the cultural disparity in the organizations and the leadership role in the cultural amalgamation of the participating companies for retaining the employees. Further this paper attempts to understand the role of trust in the organization as well as on the leader, post the merger when the employees are already experiencing a level of estrangement. The significance of analysing these perspectives in the above mentioned specific cases is to bring out the factors responsible for successful mergers and the consequences of failed mergers from a human resource perspective.
Bandura, A. (1997). Self-Efficacy: The Exercise of Control. W.H. Freeman.
Bansal, A. (2016),"Employee trust dynamics during organizational change: a context of mergers and acquisitions", Asia-Pacific Journal of Business Administration, 8(1) https://doi.org/10.1108/APJBA-08-2015-0075
Bass, B. M. (n.d.). Leadership and Performance. New York: Free Press.
Bhattacharya, R., Devinney, T. M., & Pillutla, M. M. (1998). A formal model of trust based on outcomes. Academy of Management Review, 23(3), 459-472. https://doi.org/10.2307/259289 https://doi.org/10.5465/amr.1998.926621
Bijlsma,K. & Koopman,P. (2003),"Introduction: trust within organisations", Personnel Review, 32(5), 543-555 https://doi.org/10.1108/00483480310488324
Burns, J. M. (1978). Leadership. New York: Harper & Row.
Child, J., & Tsai, T. (2005). The dynamic between firms' environmental strategies and institutional constraints in emerging economies: Evidence from China and Taiwan. Journal of Management Studies, 42(1), 95–125. https://doi.org/10.1111/j.1467-6486.2005.00490.x
Costa, A.C. (2003),Work team trust and effectiveness" Personnel Review, 32(5), 605-622 https://doi.org/10.1108/00483480310488360
Daley, D. M., & Vasu, M. L. (1998). Fostering Organizational Trust in North Carolina. Administration & Society,30(1), 62-84. https://doi.org/10.1177/009539979803000105
Davis, J. H., Schoorman, F. D., Mayer, R. C., & Tan, H. H. (2000). The trusted general manager and business unit performance: Empirical evidence of a competitive advantage. Strategic Management Journal,21(5), 563-576. https://doi.org/10.1002/(SICI)1097-0266(200005)21:5<563::AID-SMJ99>3.0.CO;2-0
Dittmar, H. (1991). Meanings of material possessions as reflections of identity: Gender and social-material position in society. Journal of Social Behavior and Personality,6(6), 165-186.
Fairholm, M.R. & Fairholm,G. (2000),"Leadership amid the constraints of trust", Leadership & Organization Development Journal, 21(2), 102 – 109 https://doi.org/10.1108/01437730010318192
Fukuyama, F. (1995). Trust: The Social Virtues and the Creation of Prosperity. New York: Free Press.
Jones, G. R., & George, J. M. (1998). The experience and evolution of trust: Implications for cooperation and teamwork. Academy of Management Review,23(3), 531-546. https://doi.org/10.5465/amr.1998.926625 https://doi.org/10.2307/259293
King, D. R., Dalton, D. R., Daily, C. M. and Covin, J. G. (2004), Meta‐analyses of post‐acquisition performance: indications of unidentified moderators. Strategic Management Journal , 25: 187-200. https://doi.org/10.1002/smj.371
Kroeger, Frens (2011), Trusting organizations: The institutionalization of trust in interorganizational relationships. Organisation19(6), 743-763
Nico Martins, (2002),"A model for managing trust", International Journal of Manpower, 23 (8), 754 – 769 https://doi.org/10.1108/01437720210453984
Mishra, A.K. & Mishra, K.E. (2013) The research on trust in leadership: The need for context, Journal of Trust Research, 3(1), 59-69 https://doi.org/10.1080/21515581.2013.771507
Mishra, K., Spreitzer, G. M., & Mishra, A. (1998). Preserving employee morale during downsizing. Sloan Management Review, 39(2), 8395.
O'Connor, J., Mumford, M. D., Clifton, T. C., Gessner, T. L., & Connelly, M. S. (1995). Charismatic leaders and destructiveness: An historiometric study. The Leadership Quarterly, 6(4), 529-555 https://doi.org/10.1016/1048-9843(95)90026-8
Pierce, J. L., Kostova, T., & Dirks, K. T. (2001). Toward a Theory of Psychological Ownership in Organizations. The Academy of Management Review,26(2), 298. https://doi.org/10.5465/amr.2001.4378028 https://doi.org/10.2307/259124
Pillai, R., Eisenbach, R., & Watson, K. (1999). Transformational leadership in the context of organizational change. Journal of Organizational Change Management,12(2), 80-89. https://doi.org/10.1108/09534819910263631
Rousseau, D. M., Sitkin, S. B., Burt, R. S., & C. C. (1998). Not So Different After All: A Cross-Discipline View Of Trust. Academy of Management Review,23(3), 393-404. https://doi.org/10.5465/amr.1998.926617
Spreitzer, G. M., & Mishra, A. K. (1999). Giving up control without losing control: Trust and its substitutes' effects on Managers involving Employees in Decision Making. Group and Organization Management,24(2), 155. https://doi.org/10.1177/1059601199242003
Tyler, T.R. (2003),"Trust within organisations", Personnel Review, 32(5), 556 – 568 https://doi.org/10.1108/00483480310488333
Walton, R. E. (1985). From control to commitment in the workplace. Harvard Business Review, 63, 7784.
White, R. W. (1959). Motivation reconsidered: The concept of competence. Perspectives in Psychology.,33-59.
Yukl, G. (1999). An Evaluation of Conceptual Weaknesses in Transformational and Charismatic Leadership Theories. Leadership Quaterly,10, 285-305. https://doi.org/10.1016/S1048-9843(99)00013-2
Y. Serkan Ozmen, (2017) "How employees define organisational trust: analysing employee trust in organisation", Journal of Global Responsibility
How to Cite
Copyright (c) 2018 Authors
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.