Perceived Organizational Support as a Mediator: How Span of Control, Uncertainty, and Power Distance Shape Employee Engagement during M&A

This study explores the determinants of employee engagement during mergers and acquisitions (M&A) within Lebanon's insurance and reinsurance sector. Focusing on the perceived organizational support (POS), power distance, span of control (SOC), and uncertainty, we develop and test an integrated model to examine how these factors together affect engagement. Data from 485 non-managerial employees were analyzed using correlation, regression, moderation, and mediation analyses. The results demonstrate that perceived span strain, uncertainty, and power distance all exert significant negative effects on engagement, while POS exhibits a strong positive effect. Furthermore, power distance and uncertainty act as significant aggravating moderators, strengthening the negative impact of span strain on engagement. Mediation analysis revealed that POS partially explains the negative effects of uncertainty (33.8%), span strain (26.2% mediated), and power distance (22.6%). An additional ANOVA with Tukey's HSD tests identified an optimal managerial SOC of 5–8 subordinates to maximize engagement during M&A. These findings are interpreted through the lenses of Social Exchange Theory and Organizational Justice Theory, emphasizing how cultural and structural during M&A influence engagement by shaping employees' perceptions of organizational support. The study provides practitioners with actionable insights for optimizing organizational structures and maintaining workforce morale during complex M&A integrations, ultimately nurturing M&A success.