Innovation during an Era of Downsizing

Authors: Gary OSTER and Franco GANDOLFI

Published in: Vol:9 No.5 / 2008

      Organizations have practiced downsizing in the pursuit of increased efficiency and effectiveness for more than three decades. While an extensive body of literature has developed related to the overall consequences of downsizing, few studies have examined the impact of downsizing on innovation. This paper synthesizes the bodies of literature of both downsizing and innovation and develops two conceptual frameworks depicting a plausible impact of downsizing on the innovative capability of an organization. The paper concludes that more research is required to validate, modify, and extend the conceptual frameworks.

Pages: 125 - 145