Technological diversification, slack resources and firm performance

Abstract

Abstract: A growing number of strategy and innovation scholars have focused on the effect of technological diversification on firm performance. But little attention has been paid to different types of slack resources which may affect the relationship between technological diversification and firm performance. In this paper, based on RBV, we examine the effect of technological diversification on firm performance and different moderating effects of slack resources on the relationship between technological diversification and firm performance. An unbalanced panel data from 316 public companies listed on GEM in China is used to examine our hypotheses. The results indicate that different moderating role of slack resources is observably recognized. Concretely, we find that unabsorbed slack positively moderates while absorbed slack negatively moderates the relationship of technological diversification and firm performance. But we find there is not a statistically significant relationship between technological diversification and firm performance. The conclusion of this study indicates that firms should consider the effect of different types of slack resources when using technological diversification to get competitive advantage.

Key words: technological diversification, unabsorbed slack, absorbed slack, firm performance

CLC Number:

F279.23

Zhang Qinglei, Shi Jianjun, Liu Chunlin. Technological diversification, slack resources and firm performance[J]. Science Research Management, 2015, 36(11): 21-28.

References

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