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The downsizing effects on survivors: a structural equation modeling analysis

The downsizing effects on survivors: a structural equation modeling analysis 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 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/value – The paper contributes by testing the moderating role of organizational commitment in the relationship between job insecurity and innovative behaviors. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Research The Journal of the Iberoamerican Academy of Management Emerald Publishing

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References (55)

Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
1536-5433
DOI
10.1108/1536-541111181895
Publisher site
See Article on Publisher Site

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 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/value – The paper contributes by testing the moderating role of organizational commitment in the relationship between job insecurity and innovative behaviors.

Journal

Management Research The Journal of the Iberoamerican Academy of ManagementEmerald Publishing

Published: Nov 15, 2011

Keywords: Employees behaviour; Downsizing; Job commitment; Survivors; Organizational commitment; Innovation

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