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DIAS Technology Review

The Institute has a unique distinction of publishing a bi-annual International journal DIAS Technology Review – The International Journal for Business and IT. The Editorial Board comprises of...

P-ISSN: 0972-9658 English Since 2004
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Vol. 6 No. 1 (2009)

Articles 11th Edition of DTR Apr – Sep 2009
DOI 10.65301/dias.2009.6.1.365

The Influence of Downsizing on Market Orientation and Financial Performance

Authors
RE
Rex McClure
69 Views
112 Downloads
Published 2009-04-30
Pages 16-27
Abstract

This study takes an interdisciplinary approach to explaining the influence of downsizing on financial performance. Previous research in this area suggests a degree of equivocality regarding this relationship. By introducing market orientation as a mediating variable, this study provides insight into how downsizing can be most effectively approached by organizations to maximize both market orientation and performance.


The results suggest that merely reducing headcount may have a detrimental effect on an organization’s ability to maintain market orientation and meet performance expectations. Alternatively, organizations that pursue new strategic options are better able to sustain market orientation, resulting in improved financial performance.

Keywords
Downsizing Market Orientation Perfomance Profitablity
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How to Cite
Rex McClure . (2009). The Influence of Downsizing on Market Orientation and Financial Performance. DIAS Technology Review, 6(1), 16-27.
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