Repeat Downsizing: Legacy, Recency, and Sensitisation Effects

Susel Arzuaga and Franco Gandolfi
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Susel Arzuaga: University of Lincoln
Franco Gandolfi: Georgetown University; California Institute of Advanced Management (CIAM)

REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, 2022, vol. 23, issue 3, 338-355

Abstract: This empirical study set in a large multinational pharmaceutical company analyses three effects of repeat downsizing on commitment based on Moore and colleagues’ research (2004; 2006). Results confirm a legacy effect whereby previous exposure to downsizing continues to influence commitment years after the initial exposure and a recency effect given by a greater negative effect of recent downsizing events compared to previous downsizing. A sensitisation effect was observed only among employees with a double direct exposure to the same downsizing method.

Keywords: repeat downsizing; commitment; legacy; recency; vulnerability; sensitisation (search for similar items in EconPapers)
JEL-codes: F23 J24 M54 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:rom:rmcimn:v:23:y:2022:i:3:p:338-355

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