A STUDY OF THE ASSOCIATION BETWEEN DOWNSIZING AND INNOVATION DETERMINANTS

Using a survey data of UK firms that engaged in downsizing, this paper explores the link between downsizing and innovation determinants. We suggest that the relationship between downsizing and innovation determinants is contingent upon the speed of implementing the downsizing and the severity of downsizing. Overall, the results confirm our general proposition and shed new light on the relationship between downsizing and innovation enhancers, and barriers to innovation.