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The downsizing effects on survivors: a structural equation modeling analysis

Published on Nov 15, 2011in Management Research: Journal of the Iberoamerican Academy of Management
· DOI :10.1108/1536-541111181895
Tânia Marques2
Estimated H-index: 2
(Polytechnic Institute of Leiria),
Isabel Suárez-González7
Estimated H-index: 7
(University of Salamanca)
+ 1 AuthorsManuel Portugal Ferreira12
Estimated H-index: 12
(Polytechnic Institute of Leiria)
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Abstract
Purpose – The extant scholarly research has been delving into several effects of downsizing, such as job insecurity, organizational commitment and innovative behavior. The purpose of this paper is to develop a model proposing organizational commitment as a mediator between job insecurity and innovative behavior. Downsizing survivors – or the individuals who remain when others exit a firm – may have higher job insecurity and lower organizational commitment post‐downsizing, thus lowering their innovative efforts.Design/methodology/approach – The authors collected 224 questionnaires from Portuguese employees and analyzed simultaneous relations with a structural equation modeling.Findings – The analysis of mediating effects suggests that the lack of commitment is not a mediating construct between job insecurity and innovative behavior. However, downsizing directly affects both organizational commitment and innovative behavior.Practical implications – The innovative behavior seems to be directly affected by jo...
  • References (47)
  • Citations (3)
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References47
Newest
Published on Feb 2, 2011in Journal of Applied Business Research
Paul Wertheim2
Estimated H-index: 2
(ACU: Abilene Christian University),
Michael A. Robinson2
Estimated H-index: 2
(Baylor University)
Prior research has presented two conflicting hypotheses regarding the effect of a firm's financial condition on the market reaction to announcements of company layoffs. The "financial distress" hypothesis states that the market reaction to layoffs for financially weak firms will be more n egative than for financially healthy firms, because the layoff announcement reveals and/or confirms the problems that led to the layoff. On the other hand, the "potential benefit" hypothesis states that the mar...
Published on Apr 1, 2010in Industrial Relations 1.10
Carl P. Maertz18
Estimated H-index: 18
(SLU: Saint Louis University),
Jack W. Wiley10
Estimated H-index: 10
(Kenexa Corporation)
+ 1 AuthorsMichael A. Campion52
Estimated H-index: 52
(Purdue University)
In a representative sample of 13,683 U.S. employees, we compared survivors of layoffs, offshoring, outsourcing, and their combinations to a group who experienced no downsizing. Survivors of layoffs perceived lower organizational performance, job security, affective attachment, calculative attachment, and had higher turnover intentions. Offshoring survivors perceived lower performance, fairness, and affective attachment, but outsourcing survivors generally did not have more negative outcomes than...
Published on Apr 1, 2008in Applied Psychology 3.27
Grand H.-L. Cheng4
Estimated H-index: 4
(UQ: University of Queensland),
Darius K.-S. Chan11
Estimated H-index: 11
(CUHK: The Chinese University of Hong Kong)
The present meta-analysis examined the tenure, age, and gender differences in the relationship between job insecurity and its job-related and health-related consequences. A total of 133 studies, providing 172 independent samples, were included in the analysis. Our results basically replicated Sverke et al.'s (2002) meta-analytic findings with an updated methodological approach and a larger database. The main differences between our findings and Sverke et al.'s are that the negative association b...
Published on Apr 1, 2007in Journal of Business Finance & Accounting 1.56
David Hillier18
Estimated H-index: 18
(University of Strathclyde),
Andrew Marshall20
Estimated H-index: 20
(University of Strathclyde)
+ 1 AuthorsSamwel Werema3
Estimated H-index: 3
(University of Strathclyde)
We examine the financial performance of UK listed companies surrounding the announcement of permanent employee layoffs. We find that poor operating and stock price performance, increased gearing, and threats from external markets for corporate control precede employee layoffs. Layoff announcements elicit a significantly negative stock price reaction, which is driven by announcements that are reactive to poor financial conditions. We also find that layoffs result in significant increases in emplo...
Published on Oct 1, 2006in Academy of Management Journal 7.19
Christopher D. Zatzick12
Estimated H-index: 12
(SFU: Simon Fraser University),
Roderick D. Iverson31
Estimated H-index: 31
(SFU: Simon Fraser University)
Although interest in the workplace trends of downsizing and high-involvement work practices continues to grow, research examining the intersection between them has been limited. In this study, we examine (1) how layoffs moderate the relationship between high-involvement work practices and productivity, and (2) how continued investments in these work practices throughout layoff periods maintain workforce productivity. Findings indicate a negative relationship between high-involvement work practic...
Published on Jan 1, 2006in Human Resource Management 2.93
Leon Grunberg17
Estimated H-index: 17
(UPS: University of Puget Sound),
Sarah Moore14
Estimated H-index: 14
(UPS: University of Puget Sound),
Edward S. Greenberg20
Estimated H-index: 20
(CU: University of Colorado Boulder)
In the present study, we investigate several outcome differences among 410 managers who either had or had not implemented layoffs (i.e., handing out warn notices) during one or more years between 2000 and 2003. Using survey data, our findings show that issuing warn notices significantly predicts increased self-reported health problems, seeking treatment for those health problems, sleep problems, feelings of depersonalization, and intent to quit. Emotional exhaustion fully mediates the relationsh...
Published on Nov 1, 2005in R & D Management 2.35
Paul Cooper1
Estimated H-index: 1
The present research uses conversations with new product innovators in commercial organisations to explore how they experience innovating in those organisations. Based on their words, the study explores how innovators experience the complex social settings and structures of their organisation, how this affects creativity, and how innovative climates are enabled or inhibited by it. Organic, self-organising working structures are shown to enable creative commercial innovation more easily than hier...
Published on Sep 1, 2005in R & D Management 2.35
Stuart Macdonald19
Estimated H-index: 19
(University of Sheffield),
Rebecca Piekkari23
Estimated H-index: 23
The formal ties that bind collaborating organisations are often assumed to be reinforced by the relationships of individual employees, and these by trust. So, too, are the personal networks by which employees acquire much of the information required for the organisation's innovation. It is easy to assume that personal networks should support collaborative arrangements. It is also tempting for managers to ensure that they do by bringing them under organisational control. This paper investigates c...
Published on Jun 22, 2004in Journal of Managerial Issues
Kenneth P. De Meuse10
Estimated H-index: 10
,
Thomas J. Bergmann12
Estimated H-index: 12
+ 1 AuthorsCatherine E. Roraff1
Estimated H-index: 1
During the current economic turbulence facing corporations, executives are searching for strategies that will enable the organization to survive and potentially grow. One approach many companies are employing to cope with the hostile and dynamic environment is organizational downsizing. Recently, international companies such as General Electric, Lucent Technologies, General Motors, Fujitsu, American Airlines, Boeing, and British Airways have announced major layoffs. Likewise, downsizing has spre...
Published on Apr 1, 2004in Journal of Management 9.06
J. L. Morrow1
Estimated H-index: 1
(Birmingham–Southern College),
Richard A. Johnson22
Estimated H-index: 22
(OU: University of Oklahoma),
Lowell W. Busenitz33
Estimated H-index: 33
(OU: University of Oklahoma)
When firms face declining financial performance, research suggests that cost and asset retrenchment can lead to improved performance among poorly performing firms. However, previous studies have largely focused on firms operating in mature industries. This research develops and tests arguments that cost and/or asset retrenchment strategies will have different effects on firm performance in competitive environments characterized as growing and declining. In growth industries, asset retrenchment w...
Cited By3
Newest
Published on Nov 29, 2018in Benchmarking: An International Journal
Salama S. Al-Qubaisi (College of Business Administration), Mian M. Ajmal8
Estimated H-index: 8
(University of Vaasa)
Purpose There is limited research that indicates the relation between knowledge management practices (KMPs), organizational culture (OC) and operational efficiency performance (OE) by using Balanced scorecards (BSC) specifically in oil and gas sector. This relationship is not yet acknowledged through empirical tests. The purpose of this paper is to fill this gap by providing a better understanding of that relationship and its importance with regard to business outcomes. Design/methodology/approa...
Published on Jan 1, 2014
George Edward Lightfoot (Walden University)
Talent Retention in Organizations Facing Staff Reductions via Layoffs by George Edward Lightfoot MS, Western Governors University, 2009 BS, University Of Wisconsin-Stevens Point, 2004 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University February 2015 Abstract High voluntary attrition threatens the future of downsizing organizations. The purpose of this phenomenological study was to explore how employee layoff an...
Published on Jan 1, 2014
The purpose of the study was to investigate the effect of job insecurity (JI) and job stress (JS) on innovative behaviour (IB) of employees, and to find out the mediation of organisational commitment (OC) between the effect of JI, and JS on IB. The banks that have adopted downsizing were taken as target population for the study. A structured questionnaire was designed and pretested. Convenience sampling technique was used for data collection and study was carried out on a sample of 100 employees...