Slash and burn or nip and tuck? downsizing, innovation and human resources

International Journal of Human Resource Management

Volumn 21, Issue 13, 2010, Pages 2291-2305

  Mellahi, Kamel ^a   Wilkinson, Adrian ^b  

^a UNIVERSITY OF SHEFFIELD   (United Kingdom)

^b GRIFFITH UNIVERSITY   (Australia)

Author keywords

Downsizing; Human resources; Innovation; Product innovation; Workforce reduction

Indexed keywords

EID: 77951181038     PISSN: 09585192     EISSN: 14664399     Source Type: Journal    
DOI: 10.1080/09585192.2010.516584     Document Type: Article

References (89)

1. Amabile, T.M., and Conti, R. (1995), What Downsizing Does to Creativity?' Issues and Observations, 15, 1-6.
2. Amabile, T.M., and Conti, R. (1999), 'Changes in the Work Environment for Creativity During Downsizing,' Academy of Management Journal, 42, 6, 630-640.
3. Baumol, W.J., Blinder, A.S., and Wolff, E.N. (2003), Downsizing in America: Reality, Causes and Consequences, New York: Russell Sage Foundation.
4. Bommer, M., and Jalajas, D.S. (1999), 'The Threat of Organizational Downsizing on the Innovation Propensity of R&D Professionals,' R&D Management, 29, 27-34.
5. Boone, J. (2000), 'Technological Progress, Downsizing and Unemployment,' The Economic Journal, 110, 465, 581-600.
6. Brockner, J. (1988), 'The Effect of Work Layoffs on Survivors: Research, Theory, and Practice,' in Research in Organizational Behavior Greenwich, eds. B.M. Staw and L.L. Cummings, CT: JAI Press, pp. 213-255.
7. Brockner, J. (1992), 'Managing the Effects of Layoffs on Survivors,' California Management Review, 34, 9-27.
8. Brockner, J., Grover, S.L., and Blonder, M.D. (1988), 'Predictors of Survivors' Job Involvement Following Layoffs: A Field Study,' Journal of Applied Psychology, 73, 436-442.
9. Brockner, J., Grover, S., Reed, T., De Witt, R., and O'Malley, M. (1987), 'Survivors' Reactions to Layoffs: We Get By With a Little Help From Our Friends,' Administrative Science Quarterly, 32,526-542.
10. Brown, S.L., and Eisenhart, K.M. (1995), 'Product Development: Past Research, Present Finding and Future Directions,' Academy of Management Review, 20, 343-378.
11. Budros, A. (1999), 'Conceptual Framework for Analyzing Why Organizations Downsize,' Organization Science, 10, 1, 69-82.
12. Burton, D.G., Keels, J.K., and Shook, C. (1996), 'Downsizing the Firm: Answering the Strategic Questions,' Academy of Management Executive, 10, 2, 38-45.
13. Byrne, J.A. (1994), 'The Pain of Downsizing,' Business Week, May 9, 60-68.
14. Cameron, K.S. (1994), 'Strategies for Successful Organizational Downsizing,' Human Resource Management, 33, 477-500.
15. Cameron, K.S., Freeman, S.J., and Mishra, A.K. (1991), 'Best Practices in White-Collar Downsizing: Managing Contradictions,' Academy of Management Executive, 5, 3, 57-73.
16. Cameron, K.S., Freeman, S.J., and Mishra, A.K. (1993), 'Downsizing and Redesigning Organizations,' in Organisational Change and Redesign, eds. G. Huber and W. Glick, New York: Oxford University Press, pp. 19-63.
17. Cascio, W.F. (1993), 'Downsizing: What Do We Know? What Have We Learned?' Academy of Management Executive, 7, 1, 95-104.
18. Cascio, W.F., and Young, C. (2003), 'Financial Consequences of Employment Change Decisions in Major US Corporations, 1982-2000,' in Resizing the Organization: Managing Layoffs, Divestiture and Closings, eds. K. De Meuse and M. Marks, San Francisco, CA: Jossey-Bass, pp. 131-156.
19. Cascio, W.F., Young, C., and Morris, J. (1997), 'Financial Consequences of Employment Change Decisions in Major US Corporations,' Academy of Management Journal, 40, 5, 1175-1190.
20. Cefis, E. (2003), 'Is There Persistence in Innovative Activities?,' International Journal of Industrial Organization, 22, 489-515.
21. Cefis, E., and Marsili, O. (2005), 'A Matter of Life and Death: Innovation and Firm Survival,' Industrial and Corporate Change, 14, 1167-1192.
22. Chabchoub, N., and Niosi, J. (2005), 'Explaining the Propensity to Patent Computer Software,' Technovation, 25, 9, 971-978.
23. Chadwick, C., Hunter, L.W., and Walston, S.L. (2004), 'Effects of Downsizing Practices on the Performance of Hospitals,' Strategic Management Journal, 25, 5, 405-427.
24. Chalos, P.C., and Chen, C.J.P. (2002), 'Employee Downsizing Strategies: Market Reaction and Post Announcement Financial Performance,' Journal of Business Finance & Accounting, 29, 5/6, 847-870.
25. Cheng, J., and Kesner, I. (1997), 'Organizational Slack and Response to Environmental Shifts: The Impact Of Resource Allocation Patterns,' Journal of Management, 23, 1-18.
26. Chorely, D. (2002), 'How to Manage Downsizing,' Financial Management, May, 6.
27. Christensen, M.C. (1997), The Innovator's Dilemma, Cambridge, MA: Harvard Business School Press.
28. Cody, A.M., Hegeman, G.B., and Shanks, D.C. (1987), 'How to Reduce the Size of the Organization but Increase Effectiveness,' Journal of Business Strategy, 8, 66-70.
29. Cole, R. (1993), 'Learning From Learning Theory: Implications for Quality Improvement of Turnover, Use of Contingent Workers, and Job Rotation Policies,' Quality Management Journal, 1, 9-25.
30. Cumming, B. (1999), Understanding Innovation from Cradle to Grave, Oxford: Butterworth-Heinenmann.
31. De Meuse, K.P., Bergmann, T., Vanderheiden, P., and Roraff, C.E. (2004), 'New Evidence Regarding Organizational Downsizing and a Firm's Financial Performance: A Long-Term Analysis,' Journal of Managerial Issues, 16, 155-177.
32. De Meuse, K.P., and Vanderheiden, P.A. (1994), 'Announced Layoffs: Their Effect on Corporate Financial Performance,' Human Resources Management, 33, 509-530.
33. Devine, K., Reay, T., Stainton, L., and Collins-Nakai, R. (2003), 'The Stress of Downsizing: Comparing Survivors and Victims,' Human Resource Management, 42, 109-124.
34. Dewettinck, K., and Buyens, D. (2002), 'Downsizing: Employee Threat or Opportunity? An Empirical Study on External and Internal Reorientation Practices in Belgian Companies,' Employee Relations, 24, 4, 389-402.
35. Diamanpour, F. (1991), 'Organizational Innovation: A Meta Analysis of Effects and Determinants and Moderators,' Academy of Management Journal, 34, 555-590.
36. Doherty, N., and Horsted, J. (1995), 'Helping Survivors to Stay on Board,' People Management, 1, 1, 26-30.
37. Dooley, R.S., and Fryxell, G.E. (1999), 'Attaining Decision Quality and Commitment From Dissent: The Moderating Effects of Competence and Loyalty in Strategic Decision-Making Teams,' Academy of Management Journal, 42, 372-388.
38. Dougherty, D. (1992), 'Interpretive Barriers to Successful Product Innovation in Large Firms,' Organization Science, 3, 179-202.
39. Dougherty, D., and Bowman, E. (1995), 'The Effects of Organizational Downsizing on Product Innovation,' California Management Review, 37, 28-44.
40. Eisenhardt, K.M., and Tabrizi, B.N. (1995), 'Accelerating Adaptive Processes: Product Innovation in the Global Computer Industry,' Administrative Science Quarterly, 40, 1, 84-110.
41. Fisher, R.S., and White, M.A. (2000), 'Downsizing in a Learning Organization: Are There Hidden Costs?' Academy of Management Reviews, 25, 1, 244-254.
42. Franco, L.G. (1989), 'Who's Winning, Who's Losing and the R&D Factor as One Reason Why,' Strategic Management Journal, 10, 449-474.
43. Greenhalgh, L. (1983), 'Organizational Decline,' in Research in the Sociology of Organizations (Vol. 2), ed. S.B. Bacharach, Greenwich, CT: JAI Press, pp. 231-276.
44. Guthrie, J.P., and Datta, K.D. (2008), 'Dumb and Dumber: The Impact of Downsizing on Firm Performance as Moderated by Industry Conditions,' Organization Science, 19, 108-123.
45. Hammer, M. (1996), Beyond Reengineering, New York: Harper Collins Business.
46. Henkoff, R. (1994), 'Getting Beyond Downsizing,' Fortune, 129, 1, 58-64.
47. Higgins, J.M. (1995), Innovateor Evaporate,New York:New Management PublishingCompany Inc.
48. Hill, C.W.L., and Snell, S.A. (1989), 'Effects of Ownership Structure and Control on Corporate Productivity,' Academy of Management Journal, 32, 25-46.
49. Hitt, A.M., Hoskisson, R.E., Ireland, R.D., and Harrison, S.J. (1991), 'Effects of Acquisitions on R&D Inputs and Outputs,' Academy of Management Journal, 34, 3, 693-706.
50. Hitt, A.M., Hoskisson, R.E., Johnson, R., and Moesel, D. (1996), 'The Market for Corporate Control and Firm Innovation,' Academy of Management Journal, 39, 5, 1084-1120.
51. Hoffman, K., Parejo, M., Bessant, J., and Perrent, L. (1998), 'Small Firms and R&D, Technology and Innovation in the UK: A Literature Review,' Technovation, 18, 1, 39-55.
52. Hoskisson, R.E., and Hitt, M.A. (1991), Downscoping: How to Tame the Diversified Firm, New York: Oxford University Press.
53. Hoskisson, R.E., Johnson, R.A., and Douglas, D.M. (1994), 'Corporate Divestiture Intensity in Restructuring Firms: Effects of Governance, Strategy, and Performance,' Academy of Management Journal, 37, 5, 1207-1251.
54. Kusunoki, K., Nonaka, I., and Nagata, A. (1998), 'Organizational Capabilities in Product Development of Japanese Firms: A Conceptual Framework and Empirical Findings,' Organization Science, 9, 6, 699-718.
55. Littler, R.C., and Innes, P. (2003), 'Downsizing and De-knowledging the Firm,' Work, Employment and Society, 17, 1, 73-100.
56. Love, G.E., and Nohria, N. (2005), 'Reducing Slack: The Performance Consequences of Downsizing by Large Industrial Firms, 1977-93,' Strategic Management Journal, 26, 1087-1108.
57. Luthans, B.C., and Sommer, S.M. (1999), 'The Impact of Downsizing on Workplace Attitudes,' Group and Organization Management, 24, 1, 46-70.
58. McCune, J.T., Beatty, R.W., and Montagno, R.V. (1988), 'Downsizing: Practices in Manufacturing Firms,' Human Resource Management, 27, 145-161.
59. McKinley, W., Sanchez, C.M., and Schick, A.G. (1995), 'Organizational Downsizing: Constraining, Cloning and Learning,' Academy of Management Executive, 9, 3, 32-44.
60. Mellahi, K., and Wilkinson, A.J. (2006), 'Downsizing and Innovation,' The Academy of Management Best Paper Proceedings, Atlanta, Georgia, August 11-16.
61. Mellahi, K., and Wilkinson, A. (2009), 'A Study of the Association Between Downsizing and Innovation Determinants,' International Journal of Innovation Management, 12, 4, 677-698.
62. Mellahi, K., and Wilkinson, A. (2010), 'A Study of the Association between Level of Slack Reduction Following Downsizing and Innovation Output,' Journal of Management Studies, 47,3,483-508.
63. Mone, M.A., McKinley, W., and Barker, V.L. (1998), 'Organization Decline and Innovation: A Contingency Framework,' Academy of Management Review, 23, 1, 115-132.
64. Niehoff, B.P., Moorman, R.H., Blakely, G.L., and Fuller, J. (2001), 'The Influence of Empowerment and Job Enrichment on Employee Loyalty in a Downsizing Environment,' Group and Organization Management, 26, 93-113.
65. Pfeffer, J. (1998), The Human Equation: Building Profits by Putting People First, Boston, MA: Harvard Business School Press.
66. Prahalad, C.K., and Hamel, G. (1990), 'The Core Competence of the Corporation,' Harvard Business Review, May-June, 79-91.
67. Quinn, J.B. (1980), 'Managing Strategic Change,' Sloan Management Review, 21, 4, 3-20.
68. Rama, M. (1999), 'Public Sector Sizing: An Introduction,' The World Bank Economic Review, 13, 1, 1-22.
69. Redman, T., and Wilkinson, A. (2009), 'Downsizing,' in Contemporary Human Resource Management, eds. T. Redman and A. Wilkinson, London: FT/Prentice Hall, pp. 381-404.
70. Ross, P.F. (1974), 'Innovation Adoption by Organizations,' Personnel Psychology, 74, 27, 21-27.
71. Said, T., Le Louarn, J., and Trembly, M. (2007), 'The Performance Effects of Major Workforce Reductions,' International Journal of Human Resource Management, 18, 12, 2075-2094.
72. Salomon, R., and Shaver, J.M. (2005), 'Export and Domestic Sales: Their Interrelationship and Determinants,' Strategic Management Journal, 26, 9, 855-871.
73. Santarelli, E., and Piergiovanni, R. (1996), 'Analyzing Literature-Based Innovation Output Indicators: The Italian Experience,' Research Policy, 25, 5, 689-711.
74. Sennett, R. (1998), The Corrosion of Character: The Personal Consequences of Work in the New Capitalism, New York: W.W. Norton & Company.
75. Shah, P.P. (2000), 'Network Destruction: The Structural Implications of Downsizing,' Academy of Management Journal, 43, 101-112.
76. Subramanian, A., and Nilakanta, S. (1996), 'Organisational Innovativeness: Exploring the Relationship Between Organizational Determinant of Innovation, Types of Innovations, and Measures of Organizational Performance,' Omega, International Journal of Management Science, 24, 6, 631-647.
77. Sutton, R.I., and Kahn, R.L. (1987), 'Prediction, Understanding, and Control as Antidotes to Organizational Stress,' in Handbook of Organizational Behaviour, ed. J.W. Lorsche, Englewood Cliffs, NJ: Prentice-Hall, pp. 272-285.
78. Teece, D.J., and Pisano, G. (1994), 'The Dynamic Capabilities of Firms: An Introduction,' Industrial and Corporate Change, 3, 3, 537-556.
79. Teece, D.J., Pisano, G., and Shuen, A. (1997), 'Dynamic Capabilities and Strategic Management,' Strategic Management Journal, 18, 7, 509-533.
80. Tombaugh, J.R., and White, L.P. (1990), 'Downsizing: An Empirical Assessment of Survivors' Perceptions in a Postlayoff Environment,' Organization Development Journal, 8, 32-43.
81. Tushman, L.M., and O'Reilly, A.C. (1997), Winning Through Innovation, Boston, MA: Harvard Business School Press.
82. Tyler, M., and Wilkinson, A. (2007), 'The Tyranny of Corporate Slenderness: Understanding Organizations Anorexically,' Work, Employment and Society, 21, 537-549.
83. Vahtera, J., Kivimäki, M., and Pentti, J. (1997), 'Effect of Organisational Downsizing on Health of Employees,' Lancet, 350, 1124-1128.
84. Verona, G. (1999), 'A Resource Based View of Product Development,' Academy of Management Review, 24, 1, 132-142.
85. Wilkinson, A. (2005), 'Downsizing, Rightsizing or Dumbsizing? Human Resources, Quality and Sustainability,' Total Quality Management, 16, 8/9, 1079-1088.
86. Wilkinson, A., Hill, M., and Gollan, P. (2001), 'The Sustainability Debate,' International Journal of Operations and Productions Management, 21, 2, 1492-1502.
87. Winter, G.S. (2003), 'Understanding Dynamic Capabilities,' Strategic Management Journal, 24, 10, 991-995.
88. Womack, J.P., Jones, D.T., and Roos, D. (1990), The Machine that Changed the World: The Triumph of Lean Production, New York: Rawson Macmillan.
89. Zyglidopoulos, S.C. (2005), 'The Impact of Downsizing on Corporate Reputation,' British Journal of Management, 16, 3, 253-259.