Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/190441 
Year of Publication: 
2016
Series/Report no.: 
IEHAS Discussion Papers No. MT-DP - 2016/17
Publisher: 
Hungarian Academy of Sciences, Institute of Economics, Budapest
Abstract: 
This study analyzes which types of firm-level shocks were associated with the centralization of strategic decision-making during the recession of 2008-09. We use a unique survey dataset of more than 14000 manufacturing firms from seven European countries which includes direct information on whether the firms centralized or decentralized their strategic decision-making process. Motivated by theoretical approaches claiming that organizations under considerable stress are more likely to centralize, we use multinomial logit models to test whether firms facing a larger fall in turnover, employment, investment or having to postpone their innovations were more likely to change their decision-making process. We find evidence that employment change and postponing innovations are indeed associated with centralization even when we control for ownership, group structure, financing, management, and strategy.
Subjects: 
centralization
Europe
recessions
JEL: 
M21
D22
D23
ISBN: 
978-615-5594-53-3
Document Type: 
Working Paper

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