Impact of organizational slack on firm exploration in a dynamic environment

Zhao Yapu; Zhang Wenhong; Chen Silei

Science Research Management ›› 2014, Vol. 35 ›› Issue (2) : 10-16.

Zhao Yapu¹, Zhang Wenhong², Chen Silei²

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Abstract

Scholars usually focus on the relationship between organizational slack and firm performance, but overlooks the influence offirm exploration. Based on resource-based view and organizational inertia perspective, this study examines the effect of organizational slack on firm exploration using 187 high-tech manufacturing firms from China. The results show that (1) the effect of organizational slack on firm exploration is positive; (2) the dynamic environment positively moderates the relationship between organizational slack and firm exploration. The findings indicate that single theory is insufficient to fully explicate their relationship. By integrating resource-based view and organizational inertia perspective, we could further understand the phenomenon.

Key words

organizational slack / firm exploration / resource-based view / organizational inertia perspective / dynamicenvironment

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Zhao Yapu, Zhang Wenhong, Chen Silei. Impact of organizational slack on firm exploration in a dynamic environment[J]. Science Research Management. 2014, 35(2): 10-16

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