The downsizing effects on survivors: a structural equation modeling analysis

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.

Citation

Marques, T., Suárez‐González, I., Pinheiro da Cruz, P. and Portugal Ferreira, M. (2011), "The downsizing effects on survivors: a structural equation modeling analysis", Management Research, Vol. 9 No. 3, pp. 174-191. https://doi.org/10.1108/1536-541111181895