A Study of the Association between Level of Slack Reduction Following Downsizing and Innovation Output
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Over the years scholars put forward a number of theories to explain the association between slack and innovation. This study extends this body of research by focusing on the effects of reduction in slack level following downsizing on innovation output. We developed two hypotheses to examine the total effects and varied yearly effects. We tested the hypotheses with data from a panel of UK firms that downsized between 1997 and 2003. The results show that the level of downsizing has only temporary effects on innovation output. We discuss the implications of these findings and avenues for future research.
Journal of Management Studies
© 2010 Blackwell Publishing Ltd and Society for Management Studies. This is the pre-peer reviewed version of the following article: A Study of the Association between Level of Slack Reduction Following Downsizing and Innovation Output, Journal of Management Studies, Volume 47, Issue 3, 2010, 483-508, which has been published in final form at10.1111/j.1467-6486.2009.00872.x.