How and when Downsizing affects Survivors' Innovative Performance: Three sequential studies examining the critical role of Interpersonal Conflict.

Sous la direction de M. Florent Noël (IAE de Paris)

Researchers have a long debate regarding the downsizing effects on various performance outcomes. The questions that still need to be addressed by downsizing researchers are how and when downsizing affects performance outcomes, especially innovative performance at the individual level? In addition, downsizing scholars have largely neglected the critical role of interpersonal conflict in fostering the adverse effects of downsizing.

Therefore, this dissertation aims to answer these questions with a quantitative study of business professionals working in various organizations in Pakistan. To do so, we conducted three sequential studies to examine the unaddressed and unexplored outcomes of downsizing (e.g., interpersonal conflict, innovative performance). Study 1 examined how and when downsizing leads to interpersonal conflict (e.g., task, process, and relationship conflicts) by detailing the mediating role of workload and the moderating effect of organizational restructuring. In study 2, we examined how and when task and process conflicts lead to relationship conflict by detailing the mediating role of negative emotions and the moderating effect of emotional intelligence.

Study 3 examined the relationship between interpersonal conflict (e.g., task, process, and relationship conflicts) and employees‘ innovative performance by detailing the moderating effects of employees‘ goal orientations. The findings revealed that downsizing leads to interpersonal conflict among survivors via workload; however, organizational restructuring minimizes survivors‘ workload, subsequently reducing interpersonal conflict.

The task and process conflicts lead to the relationship conflict via negative emotions; however, employees‘ emotional intelligence minimizes negative emotions, subsequently reducing the relationship conflict. Moreover, interpersonal conflict (i.e., task, process, and relationship conflicts) negatively affects employees‘ innovative performance; however, employees‘ mastery goal orientation decreases while performance goal orientation increases the adverse effects of interpersonal conflict on innovative performance.

Across the three studies, we found general support for our theoretical predictions, contributing to the downsizing and restructuring, interpersonal conflict, emotions and emotional intelligence, innovative performance, and goal orientations literature, and providing practical implications for the managers and employees.

 

Keywords: Downsizing, Restructuring, Workload, Interpersonal Conflict, Task Conflict, Process Conflict, Relationship Conflict, Negative Emotions, Emotional Intelligence, Mastery Goal Orientation, Performance Goal Orientation, Innovative Job Performance