Strange days indeed: Understanding the productivity paradox when firms close

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Keyword: Closedown, Decline, Closedown effect, Cybernetics, Downsizing
Publication year: 2005
Relevant Sustainable Development Goals (SDGs):
SDG 3 Good health and wellbeing
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Both the public and private sectors have since the 1980s relentlessly cut the size of their workforces. Often this downsizing has been manifest in the closure of a whole or part of an organisation. Some studies which have analysed the closure process have reported remarkable, counterintuitive improvements in labour productivity during the period between the closure announcement and the final day. Drawing on case study evidence, this paper reviews the criteria used to differentiate between closures and constructs an analytical framework integrating different levels of analysis in order to increase understanding of the phenomena.


Rune Wigblad

Högskolan Dalarna; Företagsekonomi
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John Lewer

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Magnus Hansson

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