publication . Preprint . 2006

Organizational Downsizing and Innovation

Richtnér, Anders; Åhlström, Pär;
Open Access
  • Published: 13 Jan 2006
Abstract
Companies implementing a downsizing strategy aiming at increasing cost efficiency and operational effectiveness may face the fact that their innovative ability is hampered. In this paper, we develop a model of the mechanisms through which organizational downsizing affects innovation. We use existing theory to develop propositions regarding the details of how and why organizational downsizing affects innovation. Our model contains three components: a) the organization’s stock of knowledge, b) the individual’s creativity, and c) the knowledge creation process. These are three components which previous research on innovation management has suggested strongly affect...
Subjects
free text keywords: Innovation; Knowledge; Knowledge creation; Organizational downsizing
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