Moderating effect of employee perception of responsible downsizing on job satisfaction and innovation commitment

Abstract

Firms strive to innovate and enhance their competitive advantage. However, firm innovation relies on employee willingness to innovate. Therefore, how job satisfaction motivates employees to innovate has become a crucial topic. Additionally, for firms implementing a downsizing strategy to achieve a competitive edge, employee perception of downsizing may moderate the effect of employee job satisfaction on innovation commitment. To investigate the relationships between critical variables and employee innovation, we studied 277 nonsupervisory employees and three groups of stakeholders in a company and employed quantitative and qualitative methods to examine our research construct. The results revealed that job satisfaction regarding direct supervisors, pressure at work, peer relations, support of family, and health substantially affected employee innovation commitment. Employee perception of responsible downsizing strategy altered the influence of these factors. The findings of this research construct can guide organizational research and managerial practices.