Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
The importance of slack for new organizations facing 'tough' environments
Baylor University.
Indiana University.
Jönköping University, Jönköping International Business School, JIBS, ESOL (Entrepreneurship, Strategy, Organization, Leadership).
2011 (English)In: Journal of Management Studies, ISSN 0022-2380, E-ISSN 1467-6486, Vol. 48, no 5, 1071-1097 p.Article in journal (Refereed) Published
Abstract [en]

Strategy-based models centre on the management of unique and valuable resources to take advantage of specific market opportunities. Less examined in this approach are the roles of slack resources in the process of generating firm value – particularly for new firms in ‘tough’ environments where fewer opportunities are available. Using a cohort panel of 951 new manufacturing firms over nine years, our findings provide evidence for the importance of financial slack resources in understanding opportunity generation and also for reconciling theoretical arguments regarding the slack resource–performance link. We find that while financial slack does provide buffering capacity (in hostile and dynamic environments), and flexibility for experimentation (in munificent and dynamic environments) as suggested by prior theory, the most positive relationship between financial slack and performance for new firms was in low discretion environments (hostile and stable environments) – where firms need to develop their own opportunities. The implications of these findings for theory are discussed.

Place, publisher, year, edition, pages
2011. Vol. 48, no 5, 1071-1097 p.
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-17454DOI: 10.1111/j.1467-6486.2009.00906.xOAI: oai:DiVA.org:hj-17454DiVA: diva2:484616
Available from: 2012-01-27 Created: 2012-01-27 Last updated: 2012-01-30Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Wiklund, Johan
By organisation
JIBS, ESOL (Entrepreneurship, Strategy, Organization, Leadership)
In the same journal
Journal of Management Studies
Business Administration

Search outside of DiVA

GoogleGoogle Scholar

Altmetric score

Total: 148 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf