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...

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...