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Repeat Downsizing: Legacy, Recency, and Sensitisation Effects

Author

Listed:
  • Susel ARZUAGA

    (University of Lincoln)

  • Franco GANDOLFI

    (Georgetown University; California Institute of Advanced Management (CIAM))

Abstract

This empirical study set in a large multinational pharmaceutical company analyses three effects of repeat downsizing on commitment based on Moore and colleagues’ research (2004; 2006). Results confirm a legacy effect whereby previous exposure to downsizing continues to influence commitment years after the initial exposure and a recency effect given by a greater negative effect of recent downsizing events compared to previous downsizing. A sensitisation effect was observed only among employees with a double direct exposure to the same downsizing method.

Suggested Citation

  • Susel ARZUAGA & Franco GANDOLFI, 2022. "Repeat Downsizing: Legacy, Recency, and Sensitisation Effects," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 23(3), pages 338-355, July.
    • Handle: RePEc:rom:rmcimn:v:23:y:2022:i:3:p:338-355
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    More about this item

    Keywords

    repeat downsizing; commitment; legacy; recency; vulnerability; sensitisation;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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