arbiter
JournalsAccount

Strategic deviations and firm employment decisions – empirical evidence from China

Yihan Guo & Gongyan Yang

International Journal of Manpower2026https://doi.org/10.1108/ijm-08-2025-0711article
AJG 2ABDC A
Weight
0.50

Abstract

Purpose Whether firms should pursue strategies that deviate from industry norms has received considerable scholarly attention. Design/methodology/approach Using a sample of Chinese listed non-financial firms over the period 2007–2023, this study examines the impact of strategic deviation on firms’ employment decisions. Findings We find that a higher degree of strategic deviation is associated with a significant reduction in firm employment size. Mechanism analysis indicates that strategic deviation adversely affects employment through two channels: reducing access to long-term credit and strengthening liquidity-oriented defensive behavior. Further analysis reveals that low-educated workers experience more pronounced negative effects, whereas the employment of highly educated workers remains largely unaffected. This pattern suggests that firms enhance their human capital composition, exhibiting a dual tendency of workforce downsizing and quality upgrading. Originality/value This study is among the first to investigate the labor market consequences of strategic deviation, thereby extending the literature on strategic deviation and identifying an additional potential source of unemployment.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1108/ijm-08-2025-0711

Or copy a formatted citation

@article{yihan2026,
  title        = {{Strategic deviations and firm employment decisions – empirical evidence from China}},
  author       = {Yihan Guo & Gongyan Yang},
  journal      = {International Journal of Manpower},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1108/ijm-08-2025-0711},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Strategic deviations and firm employment decisions – empirical evidence from China

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.