An investigation of downsizing social status, internal networking, and strengths crafting

Although most downsizing research highlights the negative implications of downsizing, this chapter provides an alternative view by investigating the positive outcomes of downsizing. We provide evidence from a time-separated field study that shows how downsizing social status (i.e., being either a newly employed victim or a surviving incumbent) influences internal networking behaviors, which subsequently influences how one uses their strengths at work. We find that downsizing social status has a direct and indirect effect on strengths crafting via internal networking. We also find that work experience moderates this relationship, such that those with less work experience are more likely to benefit from internal networking than those with more work experience. In short, our research finds that as a result of downsizing social status, newly employed victims can better capitalize on their strengths in their new positions than those who remained in their original job positions.