| dc.description.abstract | Through the empirical studies on the downsizing have increased significantly over the last decades, but there are few studies go into the topic of the choice of downsizing approach. Therefore, this study attempts to predict the factors influence on choice of downsizing approach. The concept of downsizing is sharpened by focusing on the choice within and among three broad approaches to selective resource reductions: retrenchment, downscaling, and downscoping. Then an array of firm and industry influences on that choice, derived from the exit and mobility barrier theories, are tested. To understand how a firm′s investment, competitor’s investment in different types of resources and the market demand influence on downsizing choice.
Collecting data from companies listed on the Taiwan Economic Journal (TEJ) between 2000 and 2012, the study examined the data with 224 companies. The research adopts logistic regression to analyze the relationships between the factors influence on choice of downsizing approach and downsizing approach. Using firm size and industry as control variables to enhance the explanation of logistic regression. The results show that firm′s investment, competitor’s investment in different types of resources and the market demand influence on downsizing choice. Therefore, when companies reduce workforce, this study can be asset disposal supporting measures. In other words, when companies reduce workforce and consider the change of assets, the three factors of this study can be a reference of the downsizing choice and the reference index of the policy-making. | en_US |