A model of competency-based motives, knowledge sharing, and exploitation capabilities to improve performance efficiency in public sector mergers: A case of the UAE

This study investigates the intricate dynamics of public sector mergers, with a focus on the United Arab Emirates. It examines the interplay between competence-based merger motives, knowledge sharing practices, exploitation capabilities, and performance efficiency in the context of these mergers. The research adopts a quantitative approach, utilizing Partial Least Squares Structural Equation Modelling (PLS-SEM) to analyze data collected from employees involved in recent public sector mergers in the UAE. The population targeted for this study consisted of employees involved in recent public sector mergers within the United Arab Emirates, specifically focusing on three major entities: the Abu Dhabi Executive Office (ADEO), the Abu Dhabi Development Holding Company (ADDHC), and the Department of Economy (DoE). These organizations were selected due to their significant roles in public sector mergers and their diverse range of functions, offering a comprehensive view of the merger process within the UAE's public sector. The total population from these entities was estimated to be approximately 5,000 employees, spanning various levels from operational staff to top management. This diverse group provided a rich source for examining the impact of mergers on employees with different roles and experiences. The study aimed to capture a wide range of perspectives to understand the nuances of competency-based merger motives, knowledge sharing, and exploitation capabilities in the context of public sector mergers. For the purpose of this research, a substantial sample size was targeted to ensure that the findings were robust and representative. The study achieved a final sample size of 362 respondents, which offered a meaningful cross-section of the population. These respondents participated in a survey that sought to gather data on their experiences and perceptions regarding the merger process, the role of knowledge sharing, and the impacts on performance efficiency and exploitation capabilities. Key findings reveal a significant positive relationship between competence-based merger motives and knowledge sharing, indicating that strategic focus on leveraging competencies is crucial for fostering a culture conducive to knowledge sharing. The study also uncovers a significant impact of knowledge sharing on exploitation capabilities, highlighting its role as a pivotal mechanism in utilizing combined resources and capabilities post-merger. However, an unexpected finding is the lack of a direct significant relationship between exploitation capabilities and performance efficiency, suggesting more complex underlying mechanisms. The study contributes to the theoretical understanding of mergers by extending the Resource-Based View (RBV) and Knowledge-Based View (KBV) in the context of public sector mergers. Practically, it offers insights for policymakers and organizational leaders, emphasizing the importance of strategic planning focused on competencies, fostering knowledge sharing, and developing exploitation capabilities for successful merger outcomes. The findings have broad implications for managing public sector mergers, proposing that effective integration and enhanced performance can be achieved through a competence-focused approach, robust knowledge sharing practices, and the strategic development of exploitation capabilities. This research provides a foundation for future studies and offers a comprehensive guide for practitioners involved in public sector mergers, paving the way for more effective and efficient organizational consolidations.