Purpose – The purpose of this paper is to analyse the simultaneous effects of perceived job insecurity and organizational commitment on the innovative behavior of workers in an announced downsizing environment. Design/methodology/approach – The authors suggest and empirically test a model...

Although firms may resort to downsizing strategies to improve financial performance, the actual outcome of downsizing is inconclusive. Testing a sample of 1,357 Portuguese firms, we conclude that firms that downsize tend to continue to underperform compared to those that do not downsize.

Purpose – The extant scholarly research has been delving into several effects of downsizing, such as job insecurity, organizational commitment and innovative behavior. The purpose of this paper is to develop a model proposing organizational commitment as a mediator between job insecurity and...