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This paper aims to examine what firms in Spanish industrial sectors redeployed their resources, depending on their organisational slack (resource excess), when faced with the global economic crisis of 2008.

Various financial measures for slack resources and performance have been analysed from more than 400 Spanish firms from 2006 (pre-crisis) to 2017 (recovery).

The first finding is that every slack is useful against an economic downturn. The results show how industrial companies use their slack resources when faced with a generalised crisis according to the level of slack possessed. The key role of the available slack against this environmental threatens is remarked.

Not every resource is useful against an economic downturn. The results show how industrial companies use their slack resources when faced with a generalised crisis in accordance with the types and levels of slack. The key role of the liquid resources, in particular cash, against this environmental threat is discussed. However, we also observe the behaviour of firms with only a few excess resources and find very similar resource consumption patterns.

Although organisational slack is a well-known concept in management, few studies deal with how companies consume or use other types of resources when confronting a crisis. This paper not only addresses this question but also offers insights for a detailed evaluation of various types of slack during and after a crisis.

Organisational slack has been widely considered in strategic management, but there is a gap in understanding the process of accumulation and application of slack resources. From a dynamic perspective and over an extended period of time, this paper analyses the management of slack resources and evaluates whether the different behaviours, in relation to the accumulation and consumption of slack resources, have any effect on performance.

The resource-based view and the dynamic extension of this theory, i.e. resource management and resource orchestration, were analysed in order to evaluate how slack resources can be managed and generate value. Assuming a configurational approach, the analysis was structured into two stages to answer the proposed hypothesis. The first stage studied whether there were different patterns of management of slack resources over time using the DistatisR package. The second stage evaluated which behaviours had the greatest impact in terms of profitability by using a dynamic panel data regression.

Three different types of slack resource management were found in companies: efficient, effective and erratic. Different types do not have the same impact on performance.

The dynamic management of slack resources has scarcely been considered, even during periods of crisis and economic expansion. This research advances the understanding of how firms transform slack resources into performance from a dynamic perspective.

This paper undertakes an empirical analysis of the impact of absorbed and unabsorbed slack, employing three different measures for each slack type, on firm profitability. We find that unabsorbed slack has a more favorable influence on future firm profitability than absorbed slack. While all the absorbed slack indicators have a significant negative influence on future profitability, the three unabsorbed slack indicators present positive, negative, and non-significant influences, respectively. The fewer constraints of unabsorbed slack on the redeployment to exploit new opportunities point to its comparative advantage over absorbed slack. We find evidence for the differential impact of absorbed versus unabsorbed slack on profitability in firms with lower levels of slack, which suggests firms prefer to withdraw resources from current business and redeploy them to develop new and more favorable business opportunities.

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 paper aims to investigate the relationships between business slack resources and environmental performance and considers the possible effects that management commitment, corporate strategy to sustainability and innovation intensity can have on such interactions.

We performed partial least squares path modeling regressions on a sample of 697 non-financial listed companies worldwide, considering a time frame of 13 years.

Operational and financial slack resources are both detrimental to environmental performance in the short term. Nevertheless, financial slack resources are useful to boost innovation that enhances environmental performance. Environmental performance improvement seems to be more a matter of managerial commitment and strategic approach towards sustainability, rather than the availability of slack resources.

Due to literature shortcomings on which effects slack resources can have on environmental performance, this paper sheds some light on the topic while also highlighting the role of management commitment, corporate sustainability strategy and innovation.

Managers should use financial slack resources in innovation activities to improve environmental performance. In doing so, they need to create retaining earnings to offset any costs using financial slack resources.

Adopting a holistic and net of endogeneity analytical perspective, this paper highlights some virtuous and critical interactions between the managerial commitment and strategic approach to sustainability, the availability of slack resources, innovation intensity and environmental performance to understand which aspects may foster or hinder the ecological transition of businesses.

This paper aims to disentangle the mechanism linking digital servitization and manufacturing firm performance. The contributions of the service networks and slack resources are analyzed.

Drawing on a survey of manufacturing firms that have implemented or are implementing digital service projects in China, this paper examines the mediation effect of service networks and the moderated mediation effect of slack resources to capture the role of service networks and slack resources in the relationship between digital servitization and manufacturing firm performance.

Both basic and advanced digital services can equally contribute to manufacturing firm performance. Service networks mediate the relationship between basic digital servitization and manufacturing firm performance. No moderated mediation effect of slack resources is found, but slack resources negatively moderate the effects of basic digital services on service networks and positively impact service networks.

The mediating mechanism of service networks in the relationship between digital servitization and manufacturing firm performance is theorized, and it is clarified that service networks mediate the association between basic digital services and manufacturing firm performance but not advanced digital services. Additionally, there is no significant difference in performance implications when manufacturing firms provide basic versus advanced digital services, answering the call for research on the various types of digital servitization. This paper also identifies firms’ slack resources as the boundary conditions under which basic digital services influence service networks and the positive impacts of slack resources on service networks, bridging the network literature, organizational slack literature and digitalization literature under the framework of service ecosystem research.

This study investigates the behaviour of family firms, family management and family ownership regarding their socioemotional wealth (Corporate Social Responsibility (CSR)) during the COVID-19 pandemic and according to their slack resources availability.

This study employs a multiple regression analysis to analyse 245 firm-year observations from 2020 to 2021.

Family firms have a negative effect on CSR, as do family management and family ownership. Slack resources (both absorbed and unabsorbed) reduce the negative effect of family firms (and family ownership) on CSR. Unabsorbed slack resources reduce the negative effect of family management on CSR and absorbed slack resources increase the negative effect of family management on CSR. The results are robust with various measurements of slack resources. Extra analyses reveal that family commissioner has no effect on CSR.

To the best of the author’s knowledge, this is the first empirical study to analyse the impact of COVID-19 on the preservation of socioemotional wealth in family firms. This study proves the theoretical argument of prior studies that the preservation of socioemotional wealth in family firms during the COVID-19 pandemic depends on their financial condition. The study also proves that there are different attitudes among family ownership, family management and family firms concerning the use of slack resources for socioemotional wealth preservation that have not been analysed by previous research.

The purpose of this study is to examine what makes some firms, but not others, see a crisis as an opportunity to become entrepreneurial. Specifically, it examines how two key capabilities for durability—(unabsorbed) slack resources and external market networks—influence small and medium-sized enterprises (SMEs)’ “opportunity confidence”, a term recently coined to denote the subjective assessment of the extent to which a crisis is a good (bad) basis for entrepreneurial activities, such as the introduction of new products/services and new market entry.

Analysis of hand-collected survey data from 138 SMEs in Greece — a country hit hard by the 2008 economic crisis.

The findings reveal that an SME's number of network contacts has a positive effect on opportunity confidence, whereas firm slack resources lack a direct effect. It is, in fact, at low levels of firm slack resources that network returns are higher, especially for older firms. An extension to the main analysis also shows that opportunity confidence is linked to firm sales growth.

Understanding what makes some firms, but not others, see a crisis as an opportunity will help build an extensive and solid knowledge base and get ready for the next big (or small) crisis, which is inevitable to occur. Besides the grants and subsidies that policymakers often provide to SMEs in times of crisis, they may also need to consider organizing actions that support the extraversion and networking of SMEs—that can be done in a variety of ways due to the rise of teleworking and online collaboration platforms since the onset of the recent COVID-19 pandemic.

This paper draws linkages between the “external enabler perspective” and the burgeoning resilience literature and illustrates empirically what makes some SMEs, but not others, view an economic crisis as a good basis for entrepreneurial activities—that is a manifestation of early-stage entrepreneurial behavior and a necessary condition before taking entrepreneurial action in times of crisis. By so doing, this study extends research on resilience that has explained the role of “capabilities for durability” as a means of surviving through a crisis by revealing that these capabilities do not necessarily translate into capabilities for renewal that will help firms to bounce forward in response to the crisis. It also points to the “dark side” of capabilities for durability and, by implication, of resilience.

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.

Although slack resources and their relationship to performance have been widely studied in the literature, the temporal symmetry of this relationship, and the duration of its effects, are still unknown aspects and are the objective of this paper.

To evaluate this effect, an exploratory study has been designed on a sample of 449 Spanish industrial companies over a period of 12 years, assessing the impact of idle resources on economic and financial profitability. By means of hierarchical regressions, the short- term, medium- term and long-term effects of slack resources have been evaluated.

The results show that the impact on performance depends on the type of resource considered. Available slack has a consistent and positive effect on economic profitability in the short term. Other types of slack show persistent effects on performance, but, in the case of the recoverable slack, with a negative sign that contradicts the benefits provided by these resources. Finally, potential slack only has a permanent effect on financial profitability, but the sign changes depending on the economic context under consideration. There are also differences in the duration of the effects according to the type of resources.

This paper advances the knowledge about the slack-performance relationship over time that has been scarcely studied.

閒置資源與表現的關係從文獻中可見得到廣泛的研究。唯這關係的時間對稱性及其影響的持續期則是未知之數，這正是本研究的目的。

此為一探索性研究，以評估這影響。研究樣本為449 間西班牙工業公司，研究為期12年，目的為評估閒置資源對經濟和財務盈利能力的影響。研究使用層次回歸，評估了閒置資源的短期、中期及長期的影響。

研究結果顯示、閒置資源對表現的影響是視乎被考慮之資源所屬種類的。可用冗餘就短期而言，對經濟盈利能力產生一貫積極的影響。其它種類的閒置資源對表現有持續的影響。但可恢復的冗餘，則與這些資源會帶來好處的現象相矛盾，帶來負面跡象。最後、潛在的冗餘對財務盈利能力只產生持久的影響，唯有關的跡象則會視乎被考慮的經濟環境而改變。致於影響的持續期則會根據資源的種類而有所不同。

本研究使我們更了解冗餘與表現在時間推移上的關係，而探討這關係的研究是罕見的。﹞