Organizational slack: is more or less better?
Purpose – The purpose of this paper is to attempt to reconcile previous views of the relationship between organizational slack and performance by examining the influences of heterogeneous corporate strategy and different slack resources. Differences in performance resulting from variations in slack can also be moderated by strategy. Design/methodology/approach – The proposed model was tested by examining operating and financial information from 529 Taiwan high‐tech companies during the period 1997‐2005. Owing to the study, data were both cross‐sectional (across firms) and time series (over years), a panel data approach were applied for hypothesis testing. Findings – The results broadly demonstrate that relationships differ based on strategy and organizational slack. Additionally, this study is the first to empirically identify a U ‐shaped relationship between slack and performance, indicating that, in certain circumstances, either more or less slack is better for performance. Originality/value – The results support a dynamic perspective regarding the slack‐performance relationship was proposed for different strategy and different types of slack resources. Moreover, the authors argue that not only resource heterogeneity, but also firm strategic orientation, should be considered when performing change activities. Restated, the authors believe the best interest for a firm aspiring to conduct organizational change behaviors is to maintain the “fitness” among the environment, strategy orientation, and slack resources will induce higher performance. This study, thus demonstrates how organizational change behaviors are influenced by slack resources and strategy heterogeneity.
Year of publication: |
2009
|
---|---|
Authors: | Chiu, Yi‐Chia ; Liaw, Yi‐Ching |
Published in: |
Journal of Organizational Change Management. - Emerald Group Publishing Limited, ISSN 1758-7816, ZDB-ID 2020442-5. - Vol. 22.2009, 3, p. 321-342
|
Publisher: |
Emerald Group Publishing Limited |
Subject: | Organizational structures | Corporate strategy | Resource allocation | Taiwan |
Saved in:
Online Resource
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