Layoffs in SMEs: The Role of Social Proximity

Vivien Lefebvre ()
Additional contact information
Vivien Lefebvre: University of Strasbourg

Journal of Business Ethics, 2024, vol. 190, issue 4, No 4, 820 pages

Abstract: Abstract Abundant research exists on the restructuring operations of large, publicly listed firms. However, little is known about the antecedents of layoffs in small and medium-sized enterprises (SMEs). Building on the stakeholder salience theory and arguments on social proximity, this study posits that SMEs are less likely to dismiss employees than large firms. We argue that the existence of strong interpersonal ties between employees and managers makes it hard for SME owners and managers to dismiss employees. Empirically analyzing a large sample of European Union firms, the results confirm that the likelihood of layoffs is lower in SMEs than in large firms, even when performance declines.

Keywords: Layoffs; SMEs; Social proximity; Stakeholder salience theory (search for similar items in EconPapers)
JEL-codes: J63 L25 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10551-023-05414-z Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jbuset:v:190:y:2024:i:4:d:10.1007_s10551-023-05414-z

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10551/PS2

DOI: 10.1007/s10551-023-05414-z

Access Statistics for this article

Journal of Business Ethics is currently edited by Michelle Greenwood and R. Edward Freeman

More articles in Journal of Business Ethics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().