Work

Slack Resources and the Performance of Privately Held Firms

Year: 2005

Type: article

Abstract: Empirical findings from publicly traded firms and behavioral arguments suggest a positive influence of resource slack on financial performance. While this area has remained unexplored in privately held firms, conceptual arguments indicate that resource constraints may enhance performance. Longitudinal data on 900 privately held firms confirm the differing influences of forms of slack on performance. Results indicate that a combination of behavioral and resource constraints arguments are necessary to explain the slack-performance relationship in privately held firms. The implications of these findings for theories of resources and entrepreneurship are discussed.

Source: Academy of Management Journal

DOI: 10.5465/amj.2005.17843944

Author: Gerard George

Institutions: University of Wisconsin–Madison, Singapore Management University

Language: English

Topic: Innovation and Knowledge Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2048517513

FWCI: 38.2

Cites: 53

Cited by: 1,293

Related to: 10