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Resilience of information flow during restructuring: Characterizing information value being exchanged and the structure of a network under turmoil

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  • Aalbers, Hendrik Leendert
  • Dolfsma, Wilfred

Abstract

Based on a unique before-and-after research design for a study of a large financial services provider, this paper demonstrates how a sudden and substantial reduction in the number of formal positions affects an organization's voluntary ideation network in unexpected ways. The network of relations maintained to voluntarily (informally) exchange new ideas within a firm is more resilient to exogenous restructuring than the current literature suggests. 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. Thus, we contribute to research on organization restructuring and the evolution of social relations under conditions of uncertainty.

Suggested Citation

  • Aalbers, Hendrik Leendert & Dolfsma, Wilfred, 2019. "Resilience of information flow during restructuring: Characterizing information value being exchanged and the structure of a network under turmoil," Journal of Business Research, Elsevier, vol. 100(C), pages 299-310.
    • Handle: RePEc:eee:jbrese:v:100:y:2019:i:c:p:299-310
    DOI: 10.1016/j.jbusres.2019.03.003
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    Cited by:

    1. Yuan, Ruizhi & Luo, Jun & Liu, Martin J. & Yu, Jiang, 2022. "Understanding organizational resilience in a platform-based sharing business: The role of absorptive capacity," Journal of Business Research, Elsevier, vol. 141(C), pages 85-99.
    2. Nowińska, Agnieszka & Schramm, Hans-Joachim, 2021. "Uncertainty, status-based homophily, versatility, repeat exchange and social exchange in the container shipping industry," Journal of Business Research, Elsevier, vol. 128(C), pages 524-536.

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