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This study aims to analyse the impact of the degree of internationalisation (DOI) on firm performance (FP), with the moderating role of organisational slack resources, namely, absorbed slack human resources, absorbed financial slack resources and unabsorbed slack resources, in the context of Asian emerging markets.

Data includes 45 companies and 225 observations in 2014–2018. The authors adopted the generalised least squares method to test their hypotheses.

DOI negatively influences FP, indicating that the link between DOI and FP is not U-shaped but relatively linear. Absorbed human resources and absorbed slack financial resources significantly enhance FP, absorbing resources associated with DOI and FP. Unabsorbed slack resources play a minor role in mitigating the deleterious impact of DOIs on FP.

Firms in an emerging market should begin exploring and expanding into overseas markets with characteristics similar to the domestic market. The firm should optimise the benefits of slack resources by appropriately allocating resources to strategic operations.

This study reveals the beneficial effect of organisational slack resources on the DOI-FP relationship via the lens of the resource-based view.

Planning is a perennially popular management tool with an ambiguous relationship to learning and performance. The purpose of this study attempts to resolve this ambiguity. The authors suggest that the critical question is not whether firms need learning for planning to influence performance, but when different firms experience different performance outcomes. The authors propose firms will benefit from strategic planning only when they learn from planning and have the resources to act on their learning.

The authors collected data from a survey of 293 individuals from 191 publicly listed US firms.

Organizational learning mediates the relations between strategic planning and organizational performance. This mediated relationship is positively moderated by high levels of human resource slack and moderate to high levels of financial slack.

The study provides evidence for previous theoretical arguments on the planning–learning relationship while extending this research by finding a complicated moderating effect of slack. The study also adds to the existing debate on optimal slack levels by suggesting that having bundles of slack resources may matter more than having uniformly high or low levels of slack. A cross-sectional study means the authors cannot infer causation.

While strategic planning is a common practice, companies may vary in their planning methodologies, influencing the outcomes of planning. Firms seeking to benefit from planning need to have both the mechanisms to learn from planning and slack to deploy these mechanisms.

These findings clarify the planning–learning–performance relationship while challenging the assumption of an average effect of planning on performance across firms.

The study addresses four vital issues in the area of organizational learning (OL) literature. The purpose of this study is to elucidate the following: definition of OL, accepted dimensions of OL, antecedents and consequences of OL and the link between OL and performance and innovation.

The study presents a systematic literature review and concept analysis of OL, along with a focused discussion on the association of OL with performance and innovation.

After articulating multiple perspectives, OL can be defined as the process by which organizational knowledge base and insights are developed via associations between past actions, the effect of those and future operations. OL has two widely acknowledged dimensions, namely, exploratory learning and exploitative learning. Moreover, the study presented a conceptual analysis of OL along with a comprehensive framework for precursors and outcomes of OL.

This study probes the issues and the pattern in the literature of OL domain. The presented conceptual analysis gives direction to the future endeavours of researchers in the field of OL.

While previous strategy research has provided significant attention to resource slack and its important roles in firm performance, particularly through strategic agility and flexibility in responding to environmental conditions, the majority of such theory and empirical work was developed for large business contexts. Therefore, the understanding of the relative contributions of absorbed and potential slack, particularly for resource-constrained small businesses, remains largely under theorized and unexamined. As many small businesses often face internal resource limitations, the ability to access external resources, in addition to internal resources, is likely significant, for firm performance, especially when small firms face high economic uncertainty. The paper aims to discuss these issues.

In this paper the authors utilize a data set from National Federation of Independent Business on small business economic trends. The sample consists of approximately 13,000 US-based small and medium businesses.

The findings highlight the importance of resource slack in firm performance offering general support for the applicability of classic management theories to the small business context. Environmental hostility and competitive intensity appear to positively moderate the observed relationship between both absorbed and potential resource slack and performance, but in different ways. Environmental hostility positively moderates the relationship between potential slack and firm performance, while competitive intensity positively moderates the relationship between absorbed slack and firm performance.

Because most classic theories in strategic management were only theorized for, and examined through, large organizations, entrepreneurship research should consider these potential limitations and carefully consider factors differing between large and small firms.

Business owners and managers should be aware that not all types of slack have equal performance implications. Absorbed slack is extremely valuable in highly competitive situation. Therefore, business owners should develop plans to recover absorbed slack during highly competitive situations as a defensive strategy. One the other hand, potential slack forces more accountability, which lowers the possibility of small firms using it to engage in price wars, but it is extremely valuable during worsening economic conditions.

In this paper the authors separate absorbed slack from potential slack conceptually and then test their individual effects on firm performance. Through this study, the authors establish boundary conditions for the important role of resource slack on performance through the moderating roles of environmental hostility and competitive intensity.

This study aims to examine what types of interfirm linkages a firm enters in relation to its manufacturing strategy. The authors further aim to determine whether heterogeneous resources have different moderating effects on the relationship between a firm’s manufacturing strategy and interfirm linkages.

The sample consists of survey and archival data on 80 publicly listed electronics firms from the semiconductor and optoelectronics industries in Taiwan. Because the dependent variable, interfirm linkage, is a binary term, the authors apply logistic regression in our study.

This paper provides empirical insight into how a firm’s manufacturing strategy affects its probability to engage in specific types of interfirm linkages. The authors find that when a firm pursues an efficiency (flexibility) strategy, it will tend to engage in marketing (technical) interfirm linkages. In addition, absorbed slack strengthens the fit between manufacturing strategy and interfirm linkage type more than unabsorbed slack does.

Because the sample is drawn from the Taiwanese semiconductor and optoelectronic industries, the authors encourage scholars to examine the generalizability of the findings. Future studies can furthermore adopt in-depth interviews to facilitate a better understanding of decision-makers’ considerations when entering interfirm linkages.

This study extends resource dependence theory across a firm’s boundary and applies the resource-based view to resource heterogeneity. The findings advance the understanding of the relationships between strategic orientation, slack resources and interfirm linkage choices. The authors show that it is important that firms consider strategic fit when they create linkages outside their existing boundaries.

Why do some small and medium-sized enterprises (SMEs) explore more while others exploit further? What are the driving forces of their exploratory and exploitative innovation? These are intriguing questions worthy of in-depth research. The purpose of this paper is to crack these problems from both objective (i.e. organizational slack) and subjective (i.e. market orientation) perspectives. Specifically, the paper examines the effects of unabsorbed and absorbed slack on exploratory and exploitative innovation and the mediating roles played by proactive and responsive market orientation.

The authors collected data from 214 SMEs in several industries of China. These businesses were located in the city of Shanghai and the provinces of Jiangsu and Zhejiang in the southeastern part of China. The survey method was used to test the hypotheses.

Results reveal that unabsorbed and absorbed slack could affect exploratory and exploitative innovation. Proactive and responsive market orientation are related to unabsorbed and absorbed slack, exploratory and exploitative innovation, and they play the roles of mediators in two sets of the relationships.

This research presents several profound insights for venture capitalists regarding to making investment decisions and for the entrepreneurs of SMEs in terms of how much resource slack they should gain and retain to reach intended level of exploratory and exploitative innovation. Some of the limitations of this study relate to the single respondent in each firm, lack of examination on relevant contextual factors and potential moderators.

This study addresses the gaps in the literature by exploring the mechanisms underlying the effects of different kinds of organizational slack on the two elements of ambidextrous innovation in non-large-scale businesses in a non-Western cultural setting.

The purpose of this study is to explore organizational factors that act as antecedents of open innovation search. The authors aim to empirically examine whether the extent to which the organizational slack is absorbed determines its influence on firms’ openness in innovation search. In addition, the authors also examine the moderating effect of absorptive capacity on the relationship between slack and open innovation search.

This study adopted secondary data from multiple sources (NBER, Compustat and US census) and then constructed a ten-year balanced panel dataset of 298 manufacturers. The generalized least square method was used to explore the determinants of open innovation search among manufacturing firms.

The results of this study reveal that the absorption level of organizational slack indeed determines the openness in innovation search. Specifically, absorbed slack negatively affects a firm’s openness in innovation search, whereas unabsorbed slack promotes open innovation search. Additionally, the relationship between absorbed slack and open innovation search will be less negative with the increase of absorptive capacity.

Different from most previous studies that have examined the performance effect of open search among high-tech and large enterprises, this study focuses on the antecedents of open search strategy in both high- and low-tech, large and small firms. The findings reveal that different forms of organizational slack divergently influence a firm’s open search strategy, contributing to the understanding of the relationship between organizational slack and knowledge search behavior in a broader context, as well as the understanding of the moderating effect of absorptive capacity.

The purpose of this paper is to propose that the resources that a firm owns and has full control (firm-level resources) and resources that a firm access through direct connection with other firms (network-level resources) will impact firm innovation when effectively deployed by the firm. While previous research examined these factors separately, the author takes a holistic view and looks into their effects on innovation simultaneously. The author also introduces the moderating effects, i.e. the variables that can enhance firm innovation through their interaction with internal and external resources.

The author tested the role of financial resources and slack resources in the form of cash slack and human slack at the firm level, and network size, network tie strength, and network diversity at the network level on the firm innovation. Using generalized negative binomial model with Huber-White procedure, the author analyzed 306 firms from the biotechnology industry over a span of 17 years.

The analysis suggests that cash slack impact innovation negatively. However, this link is moderated by firm size such that for large firms cash slack affects innovation positively. Network-level resources all positively impact innovation and have more economic impact on firm innovation than firm-level resources. Furthermore, although human slack negatively affects innovation, its interaction with network size enhances innovation.

The research makes important contributions to both strategic management and innovation literatures especially when, the author considers the role of firm-level slack in driving firm innovation. Previous research reported conflicting findings about the availability of slack resources and firm performance. The results showed that the relationship between slack resources and firm innovation is negative and significant, both for available slack and human slack. This finding parallels with previous research which reported that constraints such as lack of slack resources can actually facilitate innovation. The author also contributes to the literature by introducing boundary conditions which can enhance firm innovation through their interaction with firm-level internal and network-level external resources. In this respect, to the author’s knowledge, this is among the first studies to combine the slack literature focusing on firm-level resources with the literature on network-level resources.

The purpose of this study is to investigate the relationship between unexpected financial slack and small- and medium-sized enterprises’ (SMEs) diversification and growth performance.

Using the phenomenon of IPO over-financed in China as the empirical context, the authors constructed a firm-level measure of unexpected financial slack based on over-financed capital resources and extended the nascent inquiry on unexpected slack.

The authors proposed and tested that, with unexpected slack obtained from IPO over-financed, SMEs did not engage in diversification until slack was extraordinarily high (a curvilinear relationship). And in such cases, SMEs preferred geographic diversification rather than industry diversification. Moreover, SMEs were able to sustain growth performance both in the short term and in the long term.

This study had important implications for regulators and managers. The findings of this study suggested that proper regulations on usage of over-financed capital helped SMEs’ sustain their growth performance. Regulatory policies could curb managers from cognitive biases to behave more prudently and deploy the resources more consciously. However, with sufficient resources, managers should also consider more explorative growth drivers such as diversification.

This study joined the efforts of extending the antecedents of slack formation from internal managerial behaviors to external uncertain factors. As the first study to explore the role of unexpected slack at firm level, the results of this study shed more light on the effects of unexpected slack resources.

Scholars have recognized that formal hierarchical structures and slack resources are at the core of small- and medium-sized enterprises (SMEs) attainment of ambidexterity. Surprisingly, few studies on SMEs have analyzed the extent to which these structural and resource attributes are associated with exploration and exploitation. This study aims to examine how two structural attributes, formalization and structural empowerment, and two resource attributes, financial slack and human resource slack, affect exploration and exploitation in SMEs.

Data were gathered from a survey administered to the chief executive officers of 522 French SMEs. The research hypotheses were then tested using seemingly unrelated regressions to investigate the contrasts between the two components of ambidexterity.

The results show that structural empowerment and financial slack may be conducive to exploration and exploitation at the same time. By contrast, formalization and human resource slack impact only one of these two ambidexterity components in significant ways: the former may be a powerful lever for exploitation, while the latter may be a powerful lever for exploration.

Relying on a dual structure–resource perspective, this study allows us to discuss the distinct impacts that several organizational antecedents have on exploration and exploitation in the specific context of SMEs. It thus addresses the recent call to identify which antecedents are integrating and which are differentiating to help firms deal with ambidexterity.