Journal of Management Research
Volume 14, Number 1 ( January–March 2014)
ISSN: 0972-5814 Online ISSN: 0974-455X
Why do Firms Downsize? Theoretical Underpinnings
Franco Gandolfi
| Abstract |
This conceptual research paper examines the theoretical underpinnings of employee downsizing as a management strategy. It investigates the issue of why firms downsize in the first place. In addressing this question, some systematic thoughts are offered on the causes of downsizing. The author develops and proposes a conceptual framework for studying organizational innovation drawing upon two dimensions, social action and social context, associated with the downsizing phenomenon.
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