Managerial Ideologies as Rationalizers: How Managerial Ideologies Moderate the Relationship Between Change in Profitability and Downsizing
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In: Journal of Behavioral and Applied Management, Vol. 3, No. 2, 2002, p. 109-127.
Research output: Journal contributions › Journal articles › Research
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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 -