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

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  • Kamel Mellahi
  • Adrian Wilkinson
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    Abstract

    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. Copyright (c) 2009 Blackwell Publishing Ltd and Society for the Advancement of Management Studies.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Management Studies.

    Volume (Year): 47 (2010)
    Issue (Month): 3 (05)
    Pages: 483-508

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    Handle: RePEc:bla:jomstd:v:47:y:2010:i:3:p:483-508

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    Cited by:
    1. Ciprian Stan & Mike Peng & Garry Bruton, 2014. "Slack and the performance of state-owned enterprises," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 473-495, June.
    2. Heng Liu & Xiu-hao Ding & Hai Guo & Jin-hui Luo, 2014. "How does slack affect product innovation in high-tech Chinese firms: The contingent value of entrepreneurial orientation," Asia Pacific Journal of Management, Springer, vol. 31(1), pages 47-68, March.

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