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Downsizing strategies and institutional environments

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  • Dahl, Svenn-Åge
  • Nesheim, Torstein

Abstract

This article addresses practices and strategies relating to downsizing from an institutional perspective. Our research question is: What is the impact of regulative and normative elements in the societal environment on downsizing strategies in Norwegian firms? We use data from 23 Norwegian firms in 1990 and 1995. The analysis shows (1) that the use of different downsizing strategies is influenced by statutory law, collective agreements and the National Insurance Act; and (2) that firms act proactively with regard to societal norms against layoffs in order to protect their reputations. On the basis of an empirical analysis, some implications for the study of downsizing and relevance of our argument for institutional theory are discussed.

Suggested Citation

  • Dahl, Svenn-Åge & Nesheim, Torstein, 1998. "Downsizing strategies and institutional environments," Scandinavian Journal of Management, Elsevier, vol. 14(3), pages 239-257, March.
    • Handle: RePEc:eee:scaman:v:14:y:1998:i:3:p:239-257
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    Citations

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    Cited by:

    1. Lakshmi Bose & Philip Bohle, 2002. "Health and Social Effects of Downsizing: A Review," The Economic and Labour Relations Review, , vol. 13(2), pages 270-287, December.
    2. Jørgen Svalund & Kristin Alsos, 2023. "Enforcing rules regulating the use of temporary positions in Norway: A matter of exit, voice or silence?," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 44(4), pages 1222-1238, November.
    3. Jørgen Svalund & Heidi Kervinen, 2013. "Trade union power during labour adjustments – comparison of company-level cases," Transfer: European Review of Labour and Research, , vol. 19(4), pages 489-505, November.
    4. Ionela Andreicovici & Nava Cohen & Silvia Ferramosca & Alessandro Ghio, 2021. "Two Wrongs Make a ‘Right’? Exploring the Ethical Calculus of Earnings Management Before Large Labor Dismissals," Journal of Business Ethics, Springer, vol. 172(2), pages 379-405, August.
    5. Ståle Østhus, 2007. "For better or worse? Workplace changes and the health and well-being of Norwegian workers," Work, Employment & Society, British Sociological Association, vol. 21(4), pages 731-750, December.
    6. Victoria Buesch & Svenn-Age Dahl & Dennis A.V. Dittrich, 2004. "Age Discrimination in Hiring Decisions - A Comparison of Germany and Norway," Papers on Strategic Interaction 2004-14, Max Planck Institute of Economics, Strategic Interaction Group.
    7. Stefano Amato & Alessia Patuelli & Rodrigo Basco & Nicola Lattanzi, 2023. "Family Firms Amidst the Global Financial Crisis: A Territorial Embeddedness Perspective on Downsizing," Journal of Business Ethics, Springer, vol. 183(1), pages 213-236, February.
    8. Karen M. Olsen & Arne L. Kalleberg, 2004. "Non-Standard Work in Two Different Employment Regimes," Work, Employment & Society, British Sociological Association, vol. 18(2), pages 321-348, June.

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