Relationship among identity, image and construed external image: A missing link on acquisitions

We tested the effect of the relationship among the identity, image and construed external image of both the acquiring and the acquired companies on intergroup relations, during the post-acquisition phase. The case study of a post-acquisition insurance company showed that the identity was not consistent with the construed external image either for the acquiring or the acquired companies. Consistency between identity and image was found only for the acquiring firm. Our study evidenced that the identity, image and construed external image altogether contribute to a better understanding of intergroup relations than do any of these variables per se. Changes in this relationship should thus be taken into account to improve the organizational performance.