Understanding survivors' reactions to downsizing in China

Purpose – Using an organizational justice framework, this paper aims to examine survivors' attitudinal and behavioral correlates to downsizing in Chinese state‐owned enterprises (SOEs). Design/methodology/approach – The authors conducted one qualitative study involving personal interviews and one quantitative study involving structured surveys to develop an understanding of the phenomenon. Findings – The studies revealed that justice‐enhancing managerial practices were associated with survivors' evaluations of their outcomes after the downsizing, which in turn, were related to survivors' positive attitudinal and behavioral reactions. Research implications/limitations – The findings suggest that organizational justice provides a useful avenue for understanding survivors' perspectives in the downsizing context in China. However, retrospective, cross‐sectional data were used. Future research might investigate causality in the downsizing process by using a quasi‐experimental design. Practical implications – Managerial practices that address the relational aspects of organizational justice (informational and interpersonal justice) can serve as effective downsizing strategies in China. Originality/value – The studies are among the first to explore survivors' perspectives of downsizing from a micro‐level, organizational justice perspective in China. They contribute to the organizational justice literature by examining the relative importance of various justice perceptions in a collectivist culture.