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.

Representative 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.

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.