Surviving downsizing and innovative behaviors: a matter of organizational commitment

The purpose of this paper is to analyse the simultaneous effects of perceived job insecurity and organizational commitment on the innovative behavior of workers in an announced downsizing environment.

The authors suggest and empirically test a model using the case of a firm, an innovative high technology firm, in a downsizing process.

The results show an indirect effect of job insecurity on innovative behavior, through organizational commitment.

First, the paper only examined one firm. Although the firm is a large multinational firm it may have a specific organizational culture and a track record that generates some idiosyncratic feelings in face of downsizing. Second, the context of knowledge-intensive firms limits the scope of the study, although it is reasonable to suggest that these firms are more dependent on employees’ innovative efforts for competitive advantage.

This study is a contribution to the HRM practitioners in a tense and delicate worldwide restructuring situation. The outcomes experienced by those who remain – the survivors – are important for the future competitive capabilities of firms post-downsizing.

Thus, it seems that organizational commitment directly and positively determines workers’ innovative behavior and that organizational commitment is impacted by job insecurity in an announced downsizing environment. It is, essentially, an affective commitment and job insecurity is more affected by a perceived threat to one’s total job.

A downsizing strategy warrants that the full impact on firms’ ability to innovate be assessed.