The effects of local community characteristics on the relationship between negative performance feedback and downsizing announcements
研究了当企业因业绩下滑而裁员时，当地社区特征（如种族多样性、工会力量、社会资本和政治倾向）如何影响裁员规模，揭示了市场逻辑与社区逻辑之间的张力。
Downsizing often triggers economic disruptions in affected communities, leading to scrutiny of and resistance toward downsizing firms. Despite potential repercussions, the influence of local community pressure on downsizing decisions remains underexplored. This study advances the downsizing literature by demonstrating how the local community, as an institution, influences these decisions. We show that while market logic justifies downsizing based on declining performance, community logic pressures firms to reduce the scale of downsizing to preserve community welfare. We find that although firms increase the scale of downsizing across their subunits in response to declining performance, the scale at each subunit is shaped by the strength of community logic in each locale. This strength is influenced by community characteristics, such as ethnic diversity, labor union membership, social capital, and political ideology. Our findings suggest that the tension between market and community logics guides firms in determining where and to what extent to downsize.