Slack resources, firm performance, and the institutional context: Evidence from privately held European firms

• 成果类型: Article
• 署名作者: Vanacker, Tom; Collewaert, Veroniek; Zahra, Shaker A.
• 署名单位: Ghent University; Vlerick Business School; KU Leuven; University of Minnesota System; University of Minnesota Twin Cities
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.2583
• 发表日期: 2017
• 页码: 1305-1326
• 关键词: SLACK RESOURCES; performance; Creditor rights; employee rights; Private Firms

摘要

Research summary: Integrating the behavioral and institutional perspectives, we propose that a country's formal institutions, particularly its legal frameworks, affect managers' deployment of slack resources. Specifically, we explore the moderating effects of creditor and employee rights on the performance effects of slack. Using longitudinal data from 162,633 European private firms in 26 countries, we find that financial slack enhances firm performance at diminishing rates, whereas human resource (HR) slack lowers performance at diminishing rates. However, financial slack has a more positive effect on firm performance in countries with weaker creditor rights, whereas HR slack has a more negative effect on performance in countries with stronger employee rights. The results provide a richer view of the relationship between slack and firm performance than currently assumed in the literature. Managerial summary: A key dilemma managers often encounter is whether, on the one hand, they should build in excess resources to buffer their firms from internal and external shocks and to pursue new opportunities or whether, on the other hand, they should develop lean firms. Our study suggests that excess cash resourceswhich are usually viewed as easy to redeploybenefit firm performance, especially when firms operate in countries with weaker creditor rights. However, excess human resourceswhich are usually viewed as more difficult to redeployhamper firm performance, particularly when firms operate in countries with stronger labor protection laws. Thus, the management of slack resources critically depends on the characteristics of these resources (e.g., redeployability) and the institutional context in which managers operate. Copyright (c) 2016 John Wiley & Sons, Ltd.