TL;DR: In this article, the authors propose several operational measures, and develop one that allows the use of secondary (financial) data to measure organizational slack, which serves to reduce goal conflict, to reduce information processing needs, to promote political behavior, or to facilitate certain strategic behaviors.
Abstract: According to various writers, organizational slack serves to reduce goal conflict, to reduce information processing needs, to promote political behavior, or to facilitate certain strategic behaviors. The salient feature is that the slack construct is usually discussed without a concurrent attempt at empirical measurement. In this article I propose several operational measures, and develop one that allows the use of secondary (financial) data.
TL;DR: In this paper, the authors suggest that there is an inverse U-shaped relationship between slack and innovation in organizations: both too much and too little slack may be detrimental to innovation.
Abstract: This article suggests that there is an inverse U-shaped relationship between slack and innovation in organizations: both too much and too little slack may be detrimental to innovation. Two related ...
TL;DR: In this article, the authors investigated the relationship between organizational performance and risk taking in organizational decision making and proposed a complex model in which the direct relationship, which is triggered by performance below acceptable levels, is negative, but the indirect relationships, which are mediated by organizational slack and decentralization, are positive.
Abstract: This research paper investigates the relationship between organizational performance and risk taking in organizational decision making. A complex model is proposed in which the direct relationship, which is triggered by performance below acceptable levels, is negative, but the indirect relationships, which are mediated by organizational slack and decentralization, are positive. A test of the model for a cross-sectional sample of firms shows general support for the model. The findings have implications for theories that view change as arising from stable organizational processes.
TL;DR: In this paper, a combination of behavioral and resource constraints arguments are used to explain the slack-performance relationship in privately held firms and the implications of these findings for theories of resources and entrepreneurship are discussed.
Abstract: Empirical findings from publicly traded firms and behavioral arguments suggest a positive influence of resource slack on financial performance. While this area has remained unexplored in privately held firms, conceptual arguments indicate that resource constraints may enhance performance. Longitudinal data on 900 privately held firms confirm the differing influences of forms of slack on performance. Results indicate that a combination of behavioral and resource constraints arguments are necessary to explain the slack-performance relationship in privately held firms. The implications of these findings for theories of resources and entrepreneurship are discussed.
TL;DR: In this paper, a combination of behavioral and resource-constraints arguments are used to explain the slack-performance relationship in privately held firms, and the results indicate that behavioral theory and resource constraints are necessary to explain slack performance.
Abstract: Empirical findings from publicly traded firms and behavioral theory arguments suggest a positive influence of resource slack on financial performance. While this area has remained unexplored in privately held firms, conceptual arguments indicate that resource constraints may serve to enhance performance. Longitudinal data on 900 privately held firms confirm the differential influence of forms of slack on performance. Results indicate that a combination of behavioral and resource-constraints arguments are necessary to explain the slack-performance relationship in privately held firms.