Resistance to change in public sector mergers

In the private as well as the public sectors, mergers are common events. Yet, research on mergers and acquisitions (M&A) is based primarily on studies from the private sector, and it is assumed that conclusions from this context are valid for any context. In this article, the characteristics of resistance in public sector mergers is explored. Resistance is a central aspect in the M&A literature, as well as in the broader literature on organizational change. Observations from two case studies of mergers in the central public administration in Sweden – the Swedish National Audit Office and the Swedish Social Insurance Agency – are reported. Five propositions are established. For instance, it is suggested that vertical resistance tends to become more extensive in public mergers than in mergers in the private sector. This vertical resistance occurs between management and employees. It can be explained partly by different
standpoints as concerns the employee’s right to influence managerial
decisions. This is an argument that can be legitimized by the employee by
referring to whistle-blowing ethics and the role as a guardian of democracy.