Confronting the Contested Past: Sensemaking and Rhetorical History in the Reconstruction of Organizational Identity

This study explores how organizations experience and respond to identity challenges that arise due to conflicting interpretations of their past. Drawing on a case study of a fintech venture, we offer a process model that illuminates the unfolding of “temporal identity complexity,” a sensemaking process that involves different members developing conflicting understandings of how the past undermines the organizational identity. Our model also reveals how leaders can restore members’ beliefs in the organizational identity through “temporal synergizing,” a sensegiving process that recombines conflicting interpretations of the past to support desired identity claims in the present and future. In contrast with prior research that emphasizes the need to construe a sense of identity continuity over time, we show how organizations can instead capitalize on perceived discontinuity in their past to reaffirm identity. We discuss this and other contributions to research on organizational identity, focusing on its threads on sensemaking and rhetorical history. This includes exploring the important role that temporality and emotions play in organizational identity reconstruction.