Sensemaking of company identity in multi-company identification: a longitudinal case study of Huanyi International Travel Agency

Abstract

Purpose This paper aims to explore the key elements and dynamic formation mechanisms involved in the company identity construction during multicompany identification. Design/methodology/approach This study adopted a longitudinal single case study method, selected a representative company as the study case and analyzed the interactive practice of identity construction between the company and its external stakeholders based on the theory of organizational identity and sensemaking. Findings This study finds that the process of company identity construction for external stakeholders involves six elements. Companies mainly use a highly controlled, equality and interaction model to develop identity for a single stakeholder. Company identity is based on the company’s core identity claims and is formed by gradually integrating and cooperating with the identity claims of different stakeholders. Meeting the self-defining needs of stakeholders is a key driving force behind the evolution of company identity. Practical implications This study offers practical implications for companies to pursue and construct multicompany identity. For different types of external stakeholders, companies can adopt different identity sensemaking models. To build a new company identity, a company needs to do more on the basis of identity insights to break cognitive constraints and build new identity claim. Companies need to integrate new identity claims with the original identity claims. If different identity claims conflict or are difficult to reconcile, it may damage their original identity claims and companies need to evaluate the trade-offs. Originality/value This study expands the concept of company identity construction from the individual perspective to organizational identity and contributes to research in relationship marketing. This study identifies the key elements of company identity construction with multistakeholder participation and contributes to theory building in company identity research. The results of this study reveal the company identity construction mechanism for different external stakeholders and the dynamic formation process of multicompany identity.