Employees Feeling Their Way Through Acquisitions: How Emotions Influence Three Dimensions of Sensemaking

Abstract: Despite previous research efforts, acquisition outcomes remain disappointing, emphasising the need for a better understanding of human aspects in integration processes. This article provides insights into the under-researched area of emotions in acquisition integration processes, where scholars have repeatedly advocated for integrating emotions into sensemaking models. By addressing this gap, this study makes a two-folded contribution. First, it investigates emotions present in the acquisition integration process, contributing and adding to existing literature. Second, the study enriches existing sensemaking models by enhancing the comprehension of how emotions influence three dimensions of sensemaking, known as enactment, selection, and retention. The study is conducted through a real-time case study of SwedishTour’s acquisition integration process. Using interviews and observations, the study provides three main conclusions. First, we conclude that positive emotions, such as contentment and hope, stimulate logical thinking and facilitate a relatively effortless sensemaking process, while negative emotions, such as concern and frustration, lead to more in-depth analysis and reasoning in the enactment dimension. Second, we highlight the importance of addressing negative emotions in the selection dimension as employees tend to imitate and express similar emotions as others. The absence of the new owners and a lack of guidance also made it challenging for them to influence and steer the narrative and storyline. Moreover, we contend that employees tended to conceal their negative emotions, preventing corrective measures. Last, we conclude that emotions influence the plausibility of sensemaking in the retention dimension, where sensegiving and communication are crucial in the process of influencing employees' sensemaking. Thus, this study has important implications for managers, who can use the knowledge gained to better manage employees' emotions and sensemaking processes during acquisition integration processes. Furthermore, we provide suggested areas for future research on sensemaking and emotions during an acquisition integration process.