The Relationship between Slack Resources and Performance: An Empirical Study from China

The Relationship between Slack Resources and Performance: An Empirical Study from China

Автор: Heping Zhong

Журнал: International Journal of Modern Education and Computer Science (IJMECS) @ijmecs

Статья в выпуске: 1 vol.3, 2011 года.

Бесплатный доступ

Although organizational research posits various relationships between a firm’s slack resources and performance, findings to date have been ambiguous. The purpose of this study is to attempt to reconcile previous views of the relationship between slack resources and performance through employing empirical analysis based on survey data from 47 pharmaceutical and chemical firms in Henan Province of China. The results indicate that the relationship between slack resources and the performance is inverse N-shaped. Results provide evidence of a curvilinear relationship between slack resources and performance and broadly demonstrate that relationships differ based on industry circumstances and slack resources. Additionally, this study is the first to empirically identify an inverse N-shaped relationship between slack resources and performance, indicating that, in certain industry circumstances, little and much slack resources are bad for performance. Overall, results highlight the importance of additional research into intervening factors impacting the slack–performance relationship.

Еще

Короткий адрес: https://sciup.org/15010041

IDR: 15010041

Список литературы The Relationship between Slack Resources and Performance: An Empirical Study from China

  • Foss, N.J. and Christensen, J.F., “A market-process approach to corporate coherence”, Managerial and Decision Economics, 2001, Vol. 22 Nos 4/5, pp. 213-26.
  • Mishina, Y., Pollock, T.G. and Porac, J.F., “Are more resources always better for growth? Resource stickiness in market and product expansion”, Strategic Management Journal, 2004, Vol. 25, pp. 1179-97.
  • Penrose, E.T., “The Theory of the Growth of the Firm”, Wiley, New York, NY, 1959.
  • Singh J., “Performance slack and risk taking in organizational decision making”, Academy of Management Journal, 1986, Vol.29, pp. 562–585.
  • Cheng J, Kesner I., “Organizational slack and response to environmental shifts: the impact of resource allocation patterns”, Journal of Management, 1997, Vol.23, pp. 1–18.
  • Tan, J. and Peng, M.W., “Organizational slack and firm performance during economic transitions: two studies from an emerging economy”, Strategic Management Journal, 2003, Vol. 24 No. 13, pp. 1249-63.
  • Daniel, F., Lohrke, F.T., Fornaciari, C.J. and Turner, R.A., “Slack resource and firm performance: a meta-analysis”, Journal of Business Research, 2004, Vol. 57 No. 6, pp. 565-74.
  • Cyert, R.M. and March, J.G., “A Behavioral Theory of the Firm”, Prentice-Hall, Englewood Cliffs, NJ, 1963.
  • Thompson, J.D., “Organization in Action”, McGraw-Hill, New York, NY, 1967.
  • Fama E., “Agency problem and the theory of the firm”, Journal of Political Economy, 1980, Vol. 88, pp. 288–298.
  • Jensen M, Meckling W., “Theory of the firm: managerial behavior agency cost and ownership structure”, Journal of Financial Economics, 1976, Vol. 3, pp. 305–360.
  • Bourgeois, L.J., “On the measurement of organizational slack”, Academy of Management Review, 1981, Vol. 6 No. 1, pp. 29-39.
  • Sharfman, M.P., Wolf, G., Chase, R.B. and Tansik, D.A., “Antecedents of organizational slack”, Academy of Management Review, 1988, Vol. 13 No. 4, pp. 601-14.
  • Yi-Chia Chiu, Yi-Ching Liaw, “Organizational slack: is more or less better?”, Journal of Organizational Change Management, 2009, Vol. 22 No. 3, pp.321–342.
  • Latham, S.F. and Braun, M.R., “The performance implications of financial slack during economic recession and recovery: observations from the software industry (2001-2003)”, Journal of Managerial Issues, 2008, Vol. 20 No. 1, pp. 30-50.
  • George, G., “Slack resources and the performance of privately held firms”, Academy of Management Journal, 2005, Vol. 48 No. 4, pp. 661-76.
  • Love, E.G. and Nohria, N., “Reducing slack: the performance consequences of downsizing by large industrial firms, 1977-93”, Strategic Management Journal, 2005, Vol. 26 No. 12, pp. 1087-108.
  • Barnard C. “The Functions of the Executive”. Harvard University Press: Cambridge, MA, 1938.
  • March J, Simon H. “Organizations”. Wiley: New York, 1958.
  • Nohria, N., & Gulati, R., “Is slack good or bad for innovation?” Academy of Management Journal, 1996, Vol. 39, pp. 1245–1264.
  • Wen-Ting Lin, Kuei-Yang Cheng , Yunshi Liu, “Organizational slack and firm’s internationalization: A longitudinal study of high-technology firms”, Journal of World Business,2009, Vol. 44, pp. 397-406.
  • Geiger,S.W., Makri,M., “Exploration and exploitation innovation process: The role of organizational slack in R & D intensive firms”, Journal of High Technology Management Research, 2006, Vol. 17No. 1, pp. 97-108.
  • Zhong Heping,Fang Runsheng,Sun Lianjian,Sun Xinqing, “Human Resource Slack and Performance: Evidence from Henan Province in China”, Proceedings of The Second International Conference on Management Science and Engineering Management. England:World Academic Union,2008, pp. 513-519.
  • Bromiley, P. “Testing a causal model of corporate risk taking and performance”, Academy of Management Journal, 1991, Vol.34No. 1, pp. 37-59.
  • Jiang, C.Y&Zhao, S.M., “The relationship between organizational slack and performance: an empirical study”, Journal of management world, 2004, No. 5, pp. 108-115. (In Chinese).
  • Fang, R.S&Wang, C.L. “On the Relationship Between Types of Decision-making and Organizational Slack”, R&DMANAGEMEN, 2008, Vol. 20No .5, pp. 47-51. (In Chinese)
  • Zhong Heping. “The Impact of Organizational Slack on Technological Innovation: Evidence from Henan Province in China”, The 4th International Conference on Management and Service Science, 2010.
  • Boyd B, Dess G, Rasheed A. “Divergence between archival and perceptual measures of the environment: causes and consequences”, Academy of Management Review, 1993, Vol. 18, pp. 204–226.
  • Dess G, Robinson R. “Measuring organizational performance in the absence of objective measures”, Strategic Management Journal, 1984, Vol. 5No.3, pp. 265–273.
  • Cronbach, L.J., “Coefficient alpha and the internal structure of tests”, Psychometrika, 1951, Vol. 16, pp. 297-334.
  • Nunnally, J.C., “Psychometric Theory”, McGraw-Hill, New York, NY, 1978.
  • Yuan Li, Yongbin Zhao, Yi Liu, “The relationship between HRM, technology innovation and performance in China”, International Journal of Manpower, 2006, Vol. 27No. 7, pp. 679-697.
  • Hoskisson R, Eden L, Lau C, Wright M., “Strategy in emerging economies”, Academy of Management Journal, 2000, Vol. 43, pp. 249–267.
  • Peng MW, Luo Y., “Managerial ties and firm performance in a transition economy: the nature of a micro-macro link”, Academy of Management Journal, 2000, Vol. 43No. 3, pp. 486–501.
  • Peng MW., “Institutional transitions and strategic choices”, Academy of Management Review, 2003, Vol. 28No. 2, pp. 275–296.
  • Tan J. “Innovation and risk-taking in a transitional economy: a comparative study of Chinese managers and entrepreneurs”, Journal of Business Venturing, 2001, Vol. 16No. 4, pp. 359–376.
  • Tan J. “Impact of ownership type on environment, strategy, and performance: evidence from China”, Journal of Management Studies, 2002, Vol. 39No. 3, pp. 333–354.
Еще
Статья научная
QR-код для установки приложения SciUp Наведите камеру и скачайте бесплатное приложение SciUp