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When responsible downsizing strategy meets employee-oriented leadership: Implications for downsizing performance

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  • Tsai, Philip Cheng-Fei
  • Shih, Chih-Ting

Abstract

This study examines whether a responsible downsizing strategy and employee-oriented leadership are complementary in strengthening firm performance after downsizing. This study investigated 154 firms that have used an organizational downsizing strategy with surveys and follow-up focus groups. Results of both the empirical evidence and qualitative data demonstrates that for firms adopting an employee-oriented leadership style, the level of responsible downsizing strategy is high and firm performance is significantly increased. Specifically, the results of the focus groups indicate that a responsible downsizing strategy deepens the loyalty and faith of employees to their employer. These theoretical and practical implications are also discussed.

Suggested Citation

  • Tsai, Philip Cheng-Fei & Shih, Chih-Ting, 2013. "When responsible downsizing strategy meets employee-oriented leadership: Implications for downsizing performance," Journal of Management & Organization, Cambridge University Press, vol. 19(5), pages 583-597, September.
    • Handle: RePEc:cup:jomorg:v:19:y:2013:i:05:p:583-597_00
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