Plant closures, temporary workers and a management controlled setting : Further evidence on the Closedown effect

• This paper challenges the reach of previous research on organizational death and closedowns, by analyzingempirical evidence from cases where the control system during the closedown period was intact. Here we analyzeScanias closure concerned two plants in Sweden. In contrast to previously reported closedown cases, Scaniamaintained their management and control system and kept on "business as usual" throughout the closedownprocesses. Still, a Closedown effect was recorded. In our analysis, we elaborate on a set of complementary yetchallenging explanations to the Closedown effect and put specific emphasis on two aspects; a maintained sociallyresponsible management control system and the high level of temporary workers that were present in operationsduring the closedown process. This paper extends both the theoretical and empirical domains of the plant closureresearch. Theoretically, the paper elaborates on possible implications with these new empirical findings on handconcerning further understanding of the Closedown effect. Empirically, this paper encounter one case in whichcorporate management initiated both capital investments and implemented a newly designed product and productionprocess, during the closedown process, i.e. practicing a strong management control.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

Nyckelord

Closedown

Labor productivity

Management control

Plant closure

Temporary workers

Business Studies

Företagsekonomi

Publikations- och innehållstyp

ref (ämneskategori)

kon (ämneskategori)