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How Competitive Action Mediates the Resource Slack–Performance Relationship: A Meta‐Analytic Approach

Author

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  • Christina Matz Carnes
  • Kai Xu
  • David G. Sirmon
  • Reha Karadag

Abstract

The fungibility of organizational slack provides firms significant latitude in addressing both internal and market pressures. A vast literature suggests that slack influences firm performance; however, the empirical record is mixed, and the underlying mechanism linking slack to performance remains ambiguous. We address these issues by theoretically expanding the slack–performance model to include mediation. Specifically, we develop and test a model in which a firm’s competitive behaviours direct the utilization of slack toward the realization of firm performance. Our meta‐analytic‐based structural equation model supports partial mediation, showing that competitive behaviours provide some resolution to the conflicted understanding of how slack affects performance. Further, we provide value to the slack literature by consolidating the evidence for the effects of various types and forms of organizational slack. Beyond providing robustness to our theoretical model, doing so offers a more complete understanding of how operationalizations of slack and performance outcomes matter.

Suggested Citation

  • Christina Matz Carnes & Kai Xu & David G. Sirmon & Reha Karadag, 2019. "How Competitive Action Mediates the Resource Slack–Performance Relationship: A Meta‐Analytic Approach," Journal of Management Studies, Wiley Blackwell, vol. 56(1), pages 57-90, January.
    • Handle: RePEc:bla:jomstd:v:56:y:2019:i:1:p:57-90
    DOI: 10.1111/joms.12391
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    Citations

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    Cited by:

    1. Pinar Sener Tournus & Fatma Didin‐Sonmez & Elif Akben‐Selcuk, 2023. "How does the economic policy uncertainty affect the relationship between financial slack and firm performance in emerging countries?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 171-186, January.
    2. Du, Yunzhou & Kim, Phillip H. & Fourné, Sebastian P.L. & Wang, Xiaowei, 2022. "In times of plenty: Slack resources, R&D investment, and entrepreneurial firms in challenging institutional environments," Journal of Business Research, Elsevier, vol. 145(C), pages 360-376.
    3. Vivien Lefebvre, 2023. "Mobilizing potential slack and firm performance: Evidence from French SMEs before and during the COVID-19 period," Post-Print hal-04585954, HAL.
    4. Yang, Yang & Jiang, Yan, 2023. "Does suppliers’ slack influence the relationship between buyers’ environmental orientation and green innovation?," Journal of Business Research, Elsevier, vol. 157(C).
    5. Essuman, Dominic & Bruce, Patience Aku & Ataburo, Henry & Asiedu-Appiah, Felicity & Boso, Nathaniel, 2022. "Linking resource slack to operational resilience: Integration of resource-based and attention-based perspectives," International Journal of Production Economics, Elsevier, vol. 254(C).
    6. Gavin M Schwarz & Karin Sanders & Dave Bouckenooghe, 2020. "In the driving seat: Executive’s perceived control over environment," Australian Journal of Management, Australian School of Business, vol. 45(2), pages 317-342, May.
    7. Godoy-Bejarano, Jesús M. & Ruiz-Pava, Guillermo A. & Téllez-Falla, Diego F., 2020. "Environmental complexity, slack, and firm performance," Journal of Economics and Business, Elsevier, vol. 112(C).
    8. Jaeyoung Cho, 2024. "Thriving in the global competitive landscape: competitive dynamics and longevity of emerging market firms," Asian Business & Management, Palgrave Macmillan, vol. 23(1), pages 82-109, February.
    9. Williams, David W. & Crook, T. Russell, 2021. "Unpacking the age at initial internationalization-performance relationship: A meta-analytic investigation," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
    10. Vlas, Cristina O. & Richard, Orlando C. & Andrevski, Goce & Konrad, Alison M. & Yang, Yang, 2022. "Dynamic capabilities for managing racially diverse workforces: Effects on competitive action variety and firm performance," Journal of Business Research, Elsevier, vol. 141(C), pages 600-618.
    11. Junshu Du & Yichen Peng & Yuansong Tong & Yuriy Bilan, 2022. "Impact of enterprise ambidexterity capability and experience learning on cross-border M&A performance: evidence from China," Oeconomia Copernicana, Institute of Economic Research, vol. 13(4), pages 1177-1214, December.
    12. Lebedev, Sergey & Sun, Sunny Li & Markóczy, Lívia & Peng, Mike W., 2021. "Board political ties and firm internationalization," Journal of International Management, Elsevier, vol. 27(3).
    13. Woo, Linda & Mun, Sung Gyun & Seo, Kwanglim, 2024. "Building resilience to crisis through slack resources: A longitudinal analysis of US hotels," Annals of Tourism Research, Elsevier, vol. 106(C).
    14. Vivien Lefebvre, 2023. "Human resources slack and profitability: SMEs, large firms, and the role of business group affiliation," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(3), pages 611-637, September.
    15. You, Xialei & Jia, Shenghua & Dou, Junsheng & Su, Emma, 2020. "Is organizational slack honey or poison? Experimental research based on external investors' perception," Emerging Markets Review, Elsevier, vol. 44(C).
    16. Carnes, Christina Matz & Cavanaugh, Jeffrey & David, Parthiban & O'Brien, Jonathan, 2023. "Cash creates value for supply chain systems, but who appropriates that value?," Journal of Business Research, Elsevier, vol. 161(C).
    17. Patel, Pankaj C. & Pearce, John A. & Oghazi, Pejvak, 2021. "Not so myopic: Investors lowering short-term growth expectations under high industry ESG-sales-related dynamism and predictability," Journal of Business Research, Elsevier, vol. 128(C), pages 551-563.

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