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AuthorRamdani, Boumediene
AuthorGuermat, Cherif
AuthorMellahi, Kamel
Available date2022-11-30T15:41:22Z
Publication Date2021-05
Publication NameAustralian Journal of Management
Identifierhttp://dx.doi.org/10.1177/0312896220970609
CitationRamdani, B., Guermat, C., & Mellahi, K. (2021). The effect of downsizing on innovation outputs: The role of resource slack and constraints. Australian Journal of Management, 46(2), 346–365.
ISSN0312-8962
URIhttps://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85096959135&origin=inward
URIhttp://hdl.handle.net/10576/36813
AbstractAlthough the practice of downsizing is prevalent, its effects on organisational outcomes remain poorly understood. This article examines how and when downsizing affects organisational innovation. Using a unique data set of UK firms over a period of 22 years, we test the effect of downsizing on innovation outputs by considering the moderating role of resource slack and constraints. We argue and empirically demonstrate that downsizing has a dual effect on innovation, contingent on the firm’s level of resources. Our results reveal that downsizing affects innovation outputs positively in firms experiencing resource slack and negatively in firms experiencing resource constraints. We also show that the effect is more immediate in resource-constrained firms. Theoretical and managerial implications of these results are discussed.
Languageen
PublisherSAGE Publications
SubjectConstraints
downsizing
innovation
layoffs
patents
resource
slack
TitleThe effect of downsizing on innovation outputs: The role of resource slack and constraints
TypeArticle
Pagination346 - 365
Issue Number2
Volume Number46
ESSN1327-2020
dc.accessType Open Access


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