How Leadership Characteristics Affect Organizational Decline and Downsizing

While studies have investigated the moral issue associated with downsizing, little research attention has been directed to leaders’ behaviors that result in organizational decline and eventually lead them to make a downsizing decision. This study tests a sequence-based model to assess (1) the impact...

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Authors: Carmeli, Abraham (Author) ; Sheaffer, Zachary (Author)
Tipo de documento: Recurso Electrónico Artigo
Idioma:Inglês
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Publicado em: Springer Science + Business Media B. V 2009
Em: Journal of business ethics
Ano: 2009, Volume: 86, Número: 3, Páginas: 363-378
Outras palavras-chave:B Leadership
B organizational decline
B organizational downsizing
B industry decline
Acesso em linha: Volltext (JSTOR)
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Descrição
Resumo:While studies have investigated the moral issue associated with downsizing, little research attention has been directed to leaders’ behaviors that result in organizational decline and eventually lead them to make a downsizing decision. This study tests a sequence-based model to assess (1) the impact of leaders’ risk-aversion and self-centeredness on organizational decline and downsizing and (2) the impact of organizational and industry decline on organizational downsizing. We address a gap in the decline literature that has only implicitly alluded to leadership characteristics as forerunners of decline. Data collected from 85 firms indicate that both leadership risk-aversion and self-centeredness are significantly related to organizational decline. This results in intensified organizational downsizing. However, industry decline affects downsizing more significantly.
ISSN:1573-0697
Obras secundárias:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1007/s10551-008-9852-7