Strategy research usually assumes that displays of weakness are disadvantageous for firms. In this study, we challenge this assumption. We propose that deliberate displays of weakness can help firms preserve stakeholder approval when taking controversial decisions. To test this proposition, we examine the use and effectiveness of organizational supplication in the context of workforce downsizing. Building on impression management theory, we predict that firms portray themselves as weak through downward earnings management before workforce downsizing announcements, and that this supplication tactic helps attenuate investors’ negative reactions. Moreover, we posit that supplication paired with an efficiency-focused verbal justification for the downsizing is particularly effective at attenuating negative investor reactions to downsizing announcements, as an additional verbal justification lends authenticity to the downsizing firm’s supplication attempt. Yet, we also theorize that organizational supplication through downward earnings management is less effective if positive firm evaluations by security analysts and the business media make it appear inauthentic. The empirical analysis of nearly 600 workforce downsizing announcements by the largest listed U.S. firms between 2001 and 2020 supports our theoretical predictions.

中文翻译：

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展示弱点的优势：组织恳求和投资者对裁员的反应

战略研究通常假设疲软的表现对公司不利。在这项研究中，我们挑战了这一假设。我们建议，故意展示弱点可以帮助公司在做出有争议的决定时保持利益相关者的认可。为了检验这一命题，我们研究了在裁员背景下组织恳求的使用和有效性。基于印象管理理论，我们预测企业在宣布裁员之前通过下调盈余管理将自己描绘成弱者，而这种恳求策略有助于减轻投资者的负面反应。此外，我们认为，恳求与以效率为中心的裁员口头理由相结合，在减轻投资者对裁员公告的负面反应方面特别有效，因为额外的口头理由为裁员公司的恳求尝试提供了真实性。然而，我们也从理论上认为，如果安全分析师和商业媒体对公司的积极评价使其看起来不真实，那么通过向下盈余管理进行组织恳求的效果就会降低。对 2001 年至 2020 年间美国最大上市公司的近 600 份裁员公告的实证分析支持了我们的理论预测。