The downsizing effects on survivors: a structural equation modeling analysis

Author:

Marques Tânia,Suárez‐González Isabel,Pinheiro da Cruz Pedro,Portugal Ferreira Manuel

Abstract

PurposeThe 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/approachThe authors collected 224 questionnaires from Portuguese employees and analyzed simultaneous relations with a structural equation modeling.FindingsThe 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 implicationsThe innovative behavior seems to be directly affected by job insecurity, raising implications regarding the use of downsizing as a short‐term practice, without acknowledging the long‐term impact on organizational innovative capabilities.Originality/valueThe paper contributes by testing the moderating role of organizational commitment in the relationship between job insecurity and innovative behaviors.

Publisher

Emerald

Subject

Strategy and Management,Business and International Management

Reference52 articles.

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4. Brockner, J. (1992), “Managing the effects of layoffs on survivors”, California Management Review, Vol. 34 No. 2, pp. 9‐28.

5. Brockner, J., Spreitzer, G., Mishra, A., Hochwarter, W., Pepper, L. and Weinberg, J. (2004), “Perceived control as an antidote to the negative effects of layoffs on survivors' organizational commitment and job performance”, Administrative Science Quarterly, Vol. 49, pp. 76‐100.

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