A Study of the Association between Level of Slack Reduction Following Downsizing and Innovation Output

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Author(s)
Mellahi, Kamel
Wilkinson, Adrian
Griffith University Author(s)
Year published
2010
Metadata
Show full item recordAbstract
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.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.
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Journal Title
Journal of Management Studies
Volume
47
Issue
3
Copyright Statement
© 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.
Subject
Marketing