Advice tie reallocation under organizational downsizing

Abstract

Drawing on network theory we investigate how the hierarchical position of organizational members affects their willingness to exchange advice during sudden corporate downsizing. Based on a field study that focuses on employee downsizing at a European IT service provider, we propose and test a theoretical perspective that explains how and when employees reallocate voluntary advice ties. Our findings suggest that individuals exhibit varying levels of resilience to change, with new advice activity shifting towards hierarchical equals and away from colleagues with a higher hierarchical level. Moreover, whereas individuals with a preference for upward networking do not seek others out before a downsizing event, they do so after downsizing. The results of our study shed light on the theoretical mechanisms that underlie the formation of voluntary intra-organizational network patterns. These findings have important implications for understanding organizational behaviour during organizational change.