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Don't let Knowledge Walk Away: Knowledge Retention During Employee Downsizing

Author

Listed:
  • Achim Schmitt

    (Audencia Recherche - Audencia Business School)

  • Stefano Borzillo
  • Gilbert Probst

Abstract

In today's business environment, employee downsizing is a widespread strategy aimed at improving firm performance and competitiveness. The literature, however, highlights unequivocal findings that many downsizing initiatives fail to retain critical skills, capabilities, experience and knowledge. Employee downsizing may therefore lead to deteriorating quality, productivity and effectiveness. This article builds on this dilemma and develops a comprehensive framework to explore the relationships between employee downsizing and knowledge retention. By holding specific organizational levels responsible for knowledge retention, we derive propositions that contribute to a better understanding of how firms can retain and avoid critical knowledge losses during employee downsizing.

Suggested Citation

  • Achim Schmitt & Stefano Borzillo & Gilbert Probst, 2012. "Don't let Knowledge Walk Away: Knowledge Retention During Employee Downsizing," Post-Print hal-00956967, HAL.
    • Handle: RePEc:hal:journl:hal-00956967
    DOI: 10.1177/1350507611411630
    as

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    Cited by:

    1. Achim Schmitt & Sebastian Raisch, 2013. "Corporate Turnarounds: The Duality of Retrenchment and Recovery," Journal of Management Studies, Wiley Blackwell, vol. 50(7), pages 1216-1244, November.

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