Delayering and Firm Performance: Evidence from Swiss firm-level Data
AbstractThe past decades witnessed a broad trend towards flatter organizations with less hierarchical layers. A reduction of the number of management levels in a corpora- tion can have both positive and negative effects on firm performance with the net effect being theoretically unclear ex ante. The present study uses a nationally representative� data� set� of firms� in Switzerland� and empirically� examines� the� di- rect performance effects of delayering. Applying ordinary least squares regressions and propensity� score� matching,� this� study� finds� that� delayering significantly� increases subsequent firm performance. It can be concluded that flatter hierarchical structures seem to enable firms to better realize their competitive advantage in today’s fast moving and knowledge-intensive market environment.
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Bibliographic InfoPaper provided by Faculty of Business and Economics - University of Basel in its series Working papers with number 2011/02.
Date of creation: 2011
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-04 (All new papers)
- NEP-BEC-2011-06-04 (Business Economics)
- NEP-EFF-2011-06-04 (Efficiency & Productivity)
- NEP-LAB-2011-06-04 (Labour Economics)
- NEP-SBM-2011-06-04 (Small Business Management)
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