The research uses 18 business cases to verify the institutional theory of downsizing (McKinley et al., 2000). It shows that the rationale behind enterprises' downsizing practices is mixed with economic factors, institutional factors and social cognition processes. Moreover, the influences of institutionalization appear not only on the motivation of downsizing, but also on the practices used by enterprises to execute the downsizing strategies. The implications are: institutionalization would influence the entire process of downsizing and the future research should try to make the institutional theory of downsizing more concrete and complete. Meanwhile, the findings are useful references for enterprises and employees when dealing with the labour relations when downsizing, especially for the global HRM strategies in MNCs.
Purpose -Downsizing in organizations is a popular management strategy. However, in the field of organization change, the question of whether downsizing practices eventually improve performance is frequently asked and is never satisfactorily answered. The consequences have not always materialized over these years. On the negative side, downsizing harms employees, their families, and at the same time causes social chaos. The possible answers could be the ignorance of some important mechanisms between them. The paper aims to explain this issue. Design/methodology/approach -The paper applies the dynamic strategy capabilities concept from the strategy research field and strategic human resource management (SHRM) practices concept from the SHRM research field. Findings -A consolidated model is established to explain the relationships among these variables. Originality/value -The model is expected to provide significant implications for thought leaders to reflect on the topics regarding organizations' changes, firm's strategies and SHRM system and social issues.
This study reveals the relationships between human capital and innovative capability. It also suggests that the larger the commercial banks' human capital, the stronger the innovative capability. The implication is that enterprises should cultivate high human capital rather than simply treating employees as costs. For different levels of employees, the required capabilities clearly differ. Therefore, the leaders' characteristics, and the open-mindedness, vision and execution of core employees are more significant than for low-level employees. This research is focused on the banking industry rather than the high technology or manufacturing industry, and it is believed the findings will be beneficial to developing countries, such as Latin American countries or Asian Pacific countries.
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