In response to calls for multilevel research examining individual and meso-level processes to understand how exploitation and exploration dynamics play out in teams, we propose that individual in-role performance (cf. exploitation) and creativity (cf. exploration) are associated with team exploitation and exploration climate respectively, and this influence is moderated by domain specific performance and creative self-efficacy respectively. Studying 317 engineers in 70 teams across three national regions, we theorize and find domain-specific evidence that when individual self-efficacy is high, team climate has diminishing performance (exploitation climate × performance self-efficacy) and creative (exploration climate × creative self-efficacy) benefits. By simultaneously studying creativity and performance, our study helps understand the differences and communalities in the drivers of those outcomes in identifying both the domain-specific character of these influences and the similarity in how these influences play out.

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Purpose -A subject of continuous debate in the field of organizational change research and management practices is on whether downsizing strategies result in improved firm performance. The purpose of this paper is to propose and empirically examine dynamic firm capabilities as a major missing mechanism of firm performance. Design/methodology/approach -This study uses the data of 154 Taiwanese firms that employed an organizational downsizing strategy as the sample for testing the research question. Findings -The results indicate that a responsible downsizing strategy can result in greater firm performance for the development and enhancement of dynamic firm capabilities. Originality value -This research introduces dynamic capabilities into the downsizing context, and the empirical results provide new theoretical insight into downsizing and dynamic capabilities research, suggesting that downsizing should be regarded by management as resource management rather than a cost-cutting action.The authors would like to thank the editor and the reviewers for their helpful comments on an earlier version of the paper. 1015Responsible downsizing strategy IJM 34,8