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The purpose of this paper is to attempt to reconcile previous views of the relationship between organizational slack and performance by examining the influences of heterogeneous corporate strategy and different slack resources. Differences in performance resulting from variations in slack can also be moderated by strategy.

The proposed model was tested by examining operating and financial information from 529 Taiwan high‐tech companies during the period 1997‐2005. Owing to the study, data were both cross‐sectional (across firms) and time series (over years), a panel data approach were applied for hypothesis testing.

The results broadly demonstrate that relationships differ based on strategy and organizational slack. Additionally, this study is the first to empirically identify a U‐shaped relationship between slack and performance, indicating that, in certain circumstances, either more or less slack is better for performance.

The results support a dynamic perspective regarding the slack‐performance relationship was proposed for different strategy and different types of slack resources. Moreover, the authors argue that not only resource heterogeneity, but also firm strategic orientation, should be considered when performing change activities. Restated, the authors believe the best interest for a firm aspiring to conduct organizational change behaviors is to maintain the “fitness” among the environment, strategy orientation, and slack resources will induce higher performance. This study, thus demonstrates how organizational change behaviors are influenced by slack resources and strategy heterogeneity.

In this paper, the authors look back at James March’s main contributions to the evolution of organizations and their decision-making. No other author in management science has been quoted as much. Yet, his view on these issues is often far removed from the dominant academic representations. This paper aims to evaluate the trace left by March for the future. His teachings remain of the utmost importance for both practitioners and academics in charge of modeling the real functioning of the organizations.

In this paper, the authors look back at James March’s main contributions to the evolution of organizations and their decision-making.

On the basis of an in-depth analysis of his study, the authors discuss the main concepts to which he has dedicated his life as a researcher. Whether it is for innovation and the process of exploration associated with it or for the ambiguity that persists in learning cycles, March always shows us the ambivalence of the concepts. The strength of March’s study is to encourage us to remain cautious in the diagnoses for the development of the companies by not venerating too strongly the notions seen exclusively as virtuous, such as innovation or by not too quickly condemning situations perceived as harmful, such as ambiguity. It is, therefore, subjective and unpredictable, making the idea of a unified theory of management inoperative (Joullié, 2018). March’s way of thinking is deeply postmodern in the sense of Foucault (1961), who saw the world as a representation.

For this kind of paper based on a James March study’s survey, the main limitation is the variety of research methodology mobilized. Empirical confirmation sometimes is missing or is too short. The study remains essentially speculative as to its influence on future research. Some concepts, such as the concept of effectuation, which is a direct extension of March’s study, deserve to be tested empirically and theoretically in greater depth to assess their robustness.

All managerial implications are concerned with organizational change. His teachings remain of the utmost importance for both practitioners and academics in charge of modeling the real functioning of the organizations.

Providing a guideline concerning research in the management of organizations. A better understanding of the real functioning of how decisions happen in companies, how they change in the real world.

The authors show that, contrary to the great paradigms of management sciences (Burrell and Morgan, 1979) developed since Taylor’s founding study, which remains performative in essence, March’s study initiates a viscerally postmodern vision of the organization. The authors believe that his contributions are essential because they are not based on a normative attempt to propose a universal theory but provide a compass that is essential to understanding how the organization study.

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.

The goal of this paper is to examine how firms employ slack resources to enhance the relationship between organizational climate and perceptions of support for innovation to obtain sustainable competitive advantages.

The paper reviews the different contributions to the study of the relation between dimensions of the organizational climate, perceptions of support for innovation and organizational slack. Building on previous research, a series of hypotheses are formulated on the influence of the dimensions of organizational climate on perceptions of support for innovation and on how organizational slack moderates these relations. In contrast to earlier studies, the paper's work is based on managers' perceptions. A sample of 202 quality managers is then used to verify empirically the hypotheses which have been proposed. Finally, the main conclusions of the research are presented.

The results of the investigation reveal first, that the relation between the dimensions of organizational climate, perceptions of support for innovation and performance is moderated by organizational slack. Second, that a strong connection exists between the different dimensions of organizational climate. Finally, the results of the research also show that a strong connection exists between the different dimensions of organizational climate and perceptions of support for innovation.

The conclusions of this study may be subject to several limitations that suggest further possibilities for empirical research. First, survey data based on self‐reports may be subject to social desirability bias. Second, the cross‐sectional nature of the research allows us to analyze only a specific situation in time of the organizations studied, not their overall conduct through time. Future research should place more emphasis on longitudinal studies.

This paper maintains that the relation between the different dimensions of organizational climate, perceptions of support for innovation and performance are determined and limited by the nature and variety of resources that the organization can bundle and apply to the maintenance and development of competitive advantages, according to the availability of organizational slack to be applied directly to organizational climate and perceptions of support for innovation.

The paper has provided evidence of how managers, depending on the presence or absence of slack, combine the dimensions of organizational climate differently to create the perception of support for innovation necessary to implement innovations, which in both cases means improvement in the organization's performance.

The purpose of this study is to investigate the moderating roles of innovation intensity and lenders’ monitoring on the relation between financial slack and performance.

This study adopts an empirical method using data from firms listed in both the Compustat S&P500 and Boardex for the period 2010 to 2019 to analyze the effects of innovation intensity and lenders’ monitoring on the relation between financial slack and performance.

The authors find that financial slack is positively related to performance, and this relation is stronger as innovation intensity increases. Furthermore, we demonstrate that lenders’ monitoring strengthens the positive relationship between financial slack and performance.

First, this study focuses on the effects of financial slack, research and development (R&D) intensity and lenders’ monitoring on financial performance. Future research might extend this study by investigating the effects of these variables on non-financial performance. Second, the data and results do not provide insights into the reasons for firms to accumulate financial slack. Future research might conduct a longitudinal field study to understand why firms build financial slack. Finally, this study only uses R&D intensity and lenders’ monitoring as the moderating variables. Future studies might incorporate other contingency variables such as firms’ budgeting and budget-based compensation systems to provide useful insights into the relationship between financial slack and performance.

This study provides important insights into the value of financial slack for firms that invest heavily in R&D activities. This study also provides useful insight into the benefits of lenders’ monitoring to mitigate managers’ unethical behavior.

This study provides useful insights for companies that invest heavily in innovation activities by showing that financial slack is beneficial for this company and lenders’ monitoring is needed to discipline managers in using the slack resources.

This study is the first to investigate the moderating effects of innovation intensity and lenders’ monitoring on the relation between financial slack and performance. Previous studies focus their investigations on the direct effect of financial slack and performance.

The purpose of this paper is to empirically analyze the impact of chief executive officer (CEO) turnover on strategic change and explore the mediating role of organizational slack between them, as well as the moderating role and joint moderating role of top management team (TMT) external social network, ownership nature and industry type.

Based on the upper echelons theory, resource allocation theory and structuration theory, this paper takes the unbalanced panel data of A-share listed companies in Shanghai and Shenzhen Stock Exchanges of China from 2001 to 2018 as the research sample, uses ordinary least squares (OLS) regression method and fixed effect model to study the relationship between CEO turnover and strategic change, and focuses on the mediating mechanism and moderating mechanism between them.

The authors find that CEO turnover is positively related to strategic change. When a CEO turns over, a new CEO will initiate strategic change. Precipitation organizational slack plays a mediating role between CEO turnover and strategic change. Non-precipitation organizational slack has no mediating effect between CEO turnover and strategic change, which is embodied as “suppressing effects.” When the non-precipitation organizational slack variable is controlled, the impact of CEO turnover on strategic change will be enhanced. TMT external social network, ownership nature and industry type all negatively moderate the relationship between CEO turnover and strategic change. TMT external social network and ownership nature have a joint moderating effect between CEO turnover and strategic change. When TMT external social network is small, CEO turnover has a positive effect on strategic change in both state-owned enterprises and non-state-owned enterprises, but the promotion effect is stronger in non-state-owned enterprises. When TMT external social network is large, the positive effect of CEO turnover on strategic change in state-owned enterprises is from strong to weak, but in the non-state-owned enterprises is from weak to strong. TMT external social network and industry type have a joint moderating effect between CEO turnover and strategic change. When TMT external social network is small, CEO turnover has a positive impact on strategic change in high-tech enterprises and non-high-tech enterprises, but the promotion effect is stronger in non-high-tech enterprises. When TMT external social network is large, the positive impact of CEO turnover on strategic change in high-tech enterprises is from strong to weak, but in the non-high-tech enterprises is from weak to strong.

On the basis of previous studies, this paper further expands the research scope of the mechanism of CEO turnover on strategic change, echoing the research arguments of relevant scholars. At the same time, the research results reveal the mechanism of organizational slack, TMT external social network, ownership nature and industry type in the relationship between CEO turnover and strategic change, and further deepen the application of upper echelons theory, resources allocation theory and structuration theory in China. In addition, the research conclusions of this paper also provide reference value for Chinese enterprises in carrying out strategic change, promoting enterprise transformation and improving the level of corporate governance, and help to enhance the understanding and attention of Chinese enterprises to CEO turnover, organizational slack, TMT external social network, strategic change and corporate governance under the background of high-quality economic development.

This study aims to investigate the influence of resource slack on the decline of Brazilian companies, with a particular focus on the moderating role of environmental dynamism. The authors specifically examine three types of resource slack: available, potential and recoverable. These represent surplus resources that exceed what is necessary for the organization’s basic operations. The role of environmental dynamism, characterized by rapid changes in customer preferences, technologies and competitive dynamics, is considered as a moderating factor in this relationship.

The authors used data from Brazilian companies spanning from 1997 to 2008. The research sample was composed using the matching-pairs method, which included a group of publicly traded companies that experienced decline (43 companies) and a group that did not (40 companies) within the specified timeframe.

Findings of this study indicate that the presence of available slack, being more liquid resources, decreases the likelihood of organizational decline. Furthermore, the moderation effect of potential resource slack can mitigate decline in companies operating in dynamic industries.

This research provides valuable insights into the impact of slack resources on potential organizational turnarounds. Given the relative scarcity of resources in these companies compared to those in developed countries, whether they be financial, human or technological, the study highlights the unique influence of slack in a less explored institutional environment. This research underscores the importance of examining the decline of Brazilian companies from a broader perspective, emphasizing that decisions regarding resource use can have significant implications on a company’s trajectory, either amplifying or mitigating its decline.

¿Cuál es el impacto del slack de recursos en el declive de grandes empresas brasileñas? Para responder a esta pregunta, hemos probado hipótesis por separado para tres tipos de salck de recursos: disponible, potencial y recuperable. Estos excedentes consisten en recursos en exceso más allá de lo necesario para mantener la organización funcionando.

Desarrollamos un estudio empírico cuantitativo y longitudinal con datos de empresas brasileñas de 1997 a 2008. Adoptamos el método de pares emparejados, componiendo la muestra de investigación con un grupo de empresas cotizadas en bolsa que declinaron (43 empresas) y otro que no declinó (40 empresas) en el período de tiempo.

Encontramos que la disponibilidad de recursos más líquidos reduce la posibilidad de declive. El efecto de moderación en el slack de recursos potenciales para empresas en industrias dinámicas puede mitigar el declive.

Esta investigación contribuye a una mejor comprensión del efecto del excedente en posibles recuperaciones. Extender los estudios de recursos excedentes al contexto de empresas brasileñas mostró la influencia que el excedente ejerce en un ambiente institucional relativamente menos explorado. Ya sea financiero, humano o tecnológico, la escasez de recursos es más pronunciada que en empresas de países desarrollados. Esta investigación llama la atención sobre el hecho de que la declinación de empresas brasileñas se analiza desde una perspectiva más amplia. Las decisiones sobre cómo la empresa usa sus recursos pueden afectar positiva o negativamente la declinación de las empresas, reforzando la importancia de discutir esta relación.

A Qual é o impacto da folga de recursos no declínio de grandes empresas brasileiras? Para responder a essa pergunta, testamos hipóteses separadamente para três tipos de folga de recursos: disponível, potencial e recuperável. Essas folgas consistem em recursos além do necessário para manter a organização funcionando.

Desenvolvemos um estudo empírico quantitativo e longitudinal com dados de empresas brasileiras de 1997 a 2008. Adotamos o método de pares combinados, compondo a amostra de pesquisa com um grupo de empresas de capital aberto que declinaram (43 empresas) e outro que não declinou (40 empresas) no período.

Descobrimos que a disponibilidade de recursos mais líquidos reduz a possibilidade de declínio. O efeito moderador na folga de recursos potenciais para empresas em indústrias dinâmicas pode mitigar o declínio.

Esta pesquisa contribui para uma melhor compreensão do efeito da folga sobre possíveis recuperações. A extensão dos estudos de folgas de recursos para o contexto de empresas brasileiras mostrou a influência que a folga exerce em um ambiente institucional relativamente menos explorado. Seja financeiro, humano ou tecnológico, a escassez de recursos é mais pronunciada do que em empresas de países desenvolvidos. Esta pesquisa chama a atenção para o fato de que o declínio de empresas brasileiras é analisado sob uma perspectiva mais ampla. Decisões sobre como a empresa usa seus recursos podem afetar positiva ou negativamente o declínio das empresas, reforçando a importância de discutir essa relação.

This study aims to distinguish how unabsorbed and absorbed slack affects market and financial performance via proactive and reactive supply chain resilience (SCRES), particularly under varying conditions of organizational ambidexterity.

By collecting survey data from 277 Chinese manufacturers, we verify the conceptual model applying structural equation modeling.

Proactive SCRES mediates the positive impacts of both unabsorbed and absorbed slack on market and financial performance, whereas reactive SCRES mediates only their positive effects on financial performance. High levels of organizational ambidexterity strengthen the indirect effects of both types of slack on market and financial performance via proactive SCRES, but not when mediated by reactive SCRES.

We introduce a new theoretical perspective to view fits (as mediation) between the use of unabsorbed/absorbed slack in different ways when switching attentions to proactive or reactive SCRES, both of which can be improved through organizational ambidexterity. This study offers novel insights into how managers can switch attentions between proactive and reactive SCRES knowing when to appropriately use unabsorbed/absorbed slack for which purposes, and the use of different learning modes (explorative vs exploitative).

External environment drives established enterprises to employ management innovation. Drawing on dual-process theories, this paper purports to investigate TMT's intuitive and rational decision-making styles as mediating roles between perceived environmental turbulences and management innovation, and explain how organizational slack play an critical moderating role.

SPSS 25 is used to test 120 established enterprises' top management team (TMT) samples in China, and the moderated mediation model is empirically tested by using hierarchical regression analysis and conditional process analysis.

Perceived environmental turbulences promotes management innovation. Organizational slack as contextual variable influences the relationship between technology turbulence and TMT's decision-making styles. Interestingly, only perceived technology turbulence indirectly affects management innovation through TMT's intuitive decision-making when moderated by organizational slack. However, the indirect effect from perceived market turbulence to management innovation through TMT's rational decision-making is not significant when moderated by organizational slack.

Based on management innovation's human agency perspective, TMT's decision-making styles have not been discussed in research on management innovation. This paper sheds light on TMT's decision-making styles as mediating role.

The purpose of this paper is to improve the understanding of the mediating role of the extensiveness of strategic planning on the relationship between slack resources and organizational performance.

The study uses empirical data gathered from 102 usable replies from private and also public hospitals in the United Arab Emirates (UAE).

The findings indicate the existence of a positive relationship between slack resources and organizational performance and show that the extensiveness of strategic planning plays a mediating role in this relationship.

The authors highlight the exploratory nature of the study considering its unusual setting, namely, the UAE’s health care sector.

Several implications of the findings for managerial and policy practices in the UAE health care sector are discussed.

This study contributes to the existing literature on management, health care, and developing countries by examining the role of the extensiveness of strategic planning in mediating the relationship between slack resources and organizational performance in the health care industry of a developing country.