Organizational Downsizing: Strategic Choice of Founder CEOs versus Non-Founder CEOs

摘要

This study investigates the strategic choice of founder CEOs and non-founder CEOs as organizations' decision makers in implementing the phenomena of downsizing. The research shows that the likelihood of being downsized is higher among non-founder led firms than founder led firms. In fact non-founder CEOs, due to their high level of tendency to pursue personal goals are less growth oriented and downsizing seems to be less difficult for them to be implemented. On the other hand, founders' high attachment to their founded firms makes downsizing more of an unwilling action unless they feel it is essential for enhancing the performance.