Work

Underused resources and companies' growth: the influence of digital transformation and decision-making ability

Year: 2025

Type: article

Abstract: In the digital economy era, diverse resources remain a critical asset for businesses aiming to boost their competitiveness and secure sustainable growth.Organisational slack, as an underused resource, has increasingly captured researchers' interest, with varying impacts attributed to different types of slack.Using data from Chinese A-share listed firms from 2011 to 2019, this study discusses the influence of slack resource on companies' growth and the mechanisms of their effects in the digital setting.We conducted an empowering regression analysis with two-factor fixed effects on the dataset and found that absorbed slack facilitates companies' growth, whereas unabsorbed slack may hinder it.Simultaneously, managers with strong decision-making ability and deep digital transformation are also conducive to absorbed slack for organisational growth.A real case from a traditional coal mine company was conducted to confirm our findings and make additional discoveries.We contribute to the academic discourse by offering practical guidance for businesses on the strategic use of slack resources and integrating digital transformation initiatives.

Source: Journal of Entrepreneurship and Sustainability Issues

DOI: 10.9770/z2499568444

Authors: Zhihui Tang, Junzhen Zhou

Institutions: Zhongnan University of Economics and Law, China Huadian Corporation (China)

Language: English

Topic: Innovation and Knowledge Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $916