Programs to decrease cost and to increase operational efficiency may reduce a company's ability to innovate, by reducing organisational slack. Previous research on the relationship between organisational slack and innovation has been at level of the firm and has neglected the processes...

Companies implementing a downsizing strategy aiming at increasing cost efficiency and operational effectiveness may face the fact that their innovative ability is hampered. In this paper, we develop a model of the mechanisms through which organizational downsizing affects innovation. We use...