TY - JOUR

T1 - Managerial Ideologies as Rationalizers

T2 - How Managerial Ideologies Moderate the Relationship Between Change in Profitability and Downsizing

AU - McKinley, William

AU - Rust, Kathleen G.

PY - 2002

Y1 - 2002

N2 - This study investigates the moderating effects of three managerial ideologies on the relationship between change in profitability and subsequent downsizing. Results of a moderated regression analysis reveal that the managerial ideologies moderate the relationship between change in profitability and downsizing in a consistent manner. Strong belief in the ideologies increases the negative relationship between change in profitability and downsizing, suggesting that the ideologies enhance management's willingness to downsize when profits are stagnant or declining. The results are interpreted in terms of a theory of "rationalization," in which managerial ideologies are seen as mechanisms that rationalize or purify the ambiguous signals communicated by change in financial performance.

AB - This study investigates the moderating effects of three managerial ideologies on the relationship between change in profitability and subsequent downsizing. Results of a moderated regression analysis reveal that the managerial ideologies moderate the relationship between change in profitability and downsizing in a consistent manner. Strong belief in the ideologies increases the negative relationship between change in profitability and downsizing, suggesting that the ideologies enhance management's willingness to downsize when profits are stagnant or declining. The results are interpreted in terms of a theory of "rationalization," in which managerial ideologies are seen as mechanisms that rationalize or purify the ambiguous signals communicated by change in financial performance.

KW - Business psychology

M3 - Journal articles

VL - 3

SP - 109

EP - 127

JO - Journal of Behavioral and Applied Management

JF - Journal of Behavioral and Applied Management

SN - 1930-0158

IS - 2

ER -