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

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Impact of organizational slack on firm exploration in a dynamic environment

Zhao Yapu1, Zhang Wenhong2, Chen Silei2   

  1. 1. Antai College of Economics & Management, Shanghai JiaoTong University, Shanghai 200052, China;
    2. School of Business, Nanjing University, Nanjing 210093, Jiangsu, China
  • Received:2012-03-19 Revised:2013-03-19 Online:2014-02-25 Published:2014-03-10

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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