Recent work of mine together with Prof. Wilfred Dolfsma of Wageningen University that appeared in Journal of Business Research addresses the role of sudden organization turmoil on a firms delicate social network.
It demonstrates in particular how downsizing affects an organization’s voluntary ideation network in unexpected ways. Drawing on network theory, we show that the positioning of employees in an organization’s instrumental workflow network prior to a major restructuring determines the degree to which they remain engaged with ideation activity. In addition, drawing on social exchange theory, we predict and find that the value of inputs provided to peers prior to downsizing positively moderates the likelihood that ideation activity persists. So far the article has resulted in some interesting discussions on how to best prepare for a downsizing event with management in both profit and non profit sectors. Please let me know in case you are interested by dropping me an email and I gladly share our insights on this one in more detail with you to propel discussion on effective restructuring strategies forwards.
