Corporate Downsizing to Rebuild Team Spirit

Antonio Cabrales and Antoni Calvó-Armengol

No 201084, Working Papers from Fundacion BBVA / BBVA Foundation

Abstract: In this working paper, we propose a new theory fordownsizing, based on strategic reasons rather than technological ones. A crisis may lead to a decrease in the willingness to cooperate in an organization, and therefore to a bad equilibrium. A consensual downsizing episode may signal credibly that survivors are willing to cooperate, and thus, it maybe optimal and efficiency-enhancing (for the individuals remaining in the organization), as the empirical evidence suggests. A variation of the same mechanism leads to efficient upsizing.

Keywords: Firm downsizing; coordination mechanism; firm size; forward induction; scapegoats. (search for similar items in EconPapers)
Pages: 37
Date: 2007-07
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.fbbva.es/TLFU/tlfu/ing/publicaciones/do ... index.jsp?codigo=238
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.fbbva.es/TLFU/tlfu/ing/publicaciones/documentos/fichadoc/index.jsp?codigo=238 [301 Moved Permanently]--> https://www.fbbva.es/TLFU/tlfu/ing/publicaciones/documentos/fichadoc/index.jsp?codigo=238)

Related works:
Working Paper: Corporate Downsizing to Rebuild Team Spirit (2003)
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:fbb:wpaper:201084

Access Statistics for this paper

More papers in Working Papers from Fundacion BBVA / BBVA Foundation Contact information at EDIRC.
Bibliographic data for series maintained by Fundacion BBVA / BBVA Foundation ().