Institutionalization of Downsizing Scale

What it measures

Three-item scale measuring the extent to which downsizing is a normalised and institutionalised practice within a firm’s competitive environment—whether competitors also downsize as a restructuring and competitiveness tool. Higher scores indicate that a firm’s downsizing is industry-typical rather than idiosyncratic, which may reduce the signal value of the downsizing to customers.

Response format

7-point scale (1 = strongly disagree, 7 = strongly agree)

Scale items

• Our competitors also rely on downsizing to restructure their organizations.
• Our competitors also use downsizing to increase their competitiveness.
• Our downsizing project was no unique occurrence in our competitive environment.

Full scale items shown. Always cite the original source when using this scale in research.

Usage notes & scoring

Composite reliability = .92; AVE = .80. Newly developed instrument; used as control variable in the study. Higher institutionalization was associated with lower perceived customer uncertainty (b = –.294, p < .01), consistent with the interpretation that customers respond more calmly to industry-normative downsizing events.

Recommended companion scales

Citation

Homburg, C., Klarmann, M., & Staritz, S. (2012). Customer uncertainty following downsizing: The effects of extent of downsizing and open communication. Journal of Marketing, 76(3), 112–129.

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