Leadership style and post‐merger satisfaction

Abstract

Explores the relationship between leadership style and post‐merger satisfaction, noting from the results that leadership style is significantly related to merger satisfaction for both acquiring and acquired firm employees, but that effective leadership style profiles vary for these two groups of employees. Shows that, for acquiring firm employees, the use of reward power is the strongest predictor of merger satisfaction, while merger satisfaction for acquired firm employees is most closely associated with transformational leadership. Suggests that appropriate leadership style can greatly enhance merger effectiveness.