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Firm, industry, and strategy influences on choice of downsizing approach
Author(s) -
Dewitt RockiLee
Publication year - 1998
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/(sici)1097-0266(199801)19:1<59::aid-smj934>3.0.co;2-2
Subject(s) - industrial organization , resource (disambiguation) , business , focus (optics) , marketing , microeconomics , theory of the firm , economics , computer science , computer network , physics , optics
This study represents a step toward a more sophisticated and grounded understanding of downsizing. The author sharpens the concept of downsizing by identifying and distinguishing among different resource‐reduction approaches. Then, drawing upon exit and mobility barrier theory, firm, industry, and strategy influences on choice of downsizing approach are examined. Findings suggest that characteristics of a firm's resources and the resale market for those resources differentially influence broad and focus firms' choice of downsizing approach. © 1998 John Wiley & Sons, Ltd.