IDEAS home Printed from https://ideas.repec.org/a/eee/eurman/v21y2003i6p740-749.html
   My bibliography  Save this article

Curvilinear Relationship Between Organizational Slack and Firm Performance:: Evidence from Chinese State Enterprises

Author

Listed:
  • Tan, Justin

Abstract

In this project, I undertake this empirical study on the role of organizational slack among State-owned enterprises in China. I report empirical evidence based on a large data set (1995-1996) from the Chinese government archive, consisting of all Chinese large and medium SOEs. Results indicate that slack resources, regardless of the degree to which they have been committed in the production process, have contributed positively to firm performance. I also found that such an impact is curvilinear, resembling inverse parabolic curves. Research and practical implications are discussed.

Suggested Citation

  • Tan, Justin, 2003. "Curvilinear Relationship Between Organizational Slack and Firm Performance:: Evidence from Chinese State Enterprises," European Management Journal, Elsevier, vol. 21(6), pages 740-749, December.
    • Handle: RePEc:eee:eurman:v:21:y:2003:i:6:p:740-749
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0263237303001233
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guan, Jian & Gao, Zhimin & Tan, Justin & Sun, Weizheng & Shi, Fan, 2021. "Does the mixed ownership reform work? Influence of board chair on performance of state-owned enterprises," Journal of Business Research, Elsevier, vol. 122(C), pages 51-59.
    2. 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.
    3. Arboleda, Xavier & Bermúdez-Barrezueta, Natalia & Camino-Mogro, Segundo, 2022. "Production and enterprise profitability in Ecuador’s crop-growing sector," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    4. Loren Brandt & Feitao Jiang & Yao Luo & Yingjun Su, 2022. "Ownership and Productivity in Vertically Integrated Firms: Evidence from the Chinese Steel Industry," The Review of Economics and Statistics, MIT Press, vol. 104(1), pages 101-115, March.
    5. Fumitoshi Mizutani & Eri Nakamura, 2014. "Managerial incentive, organizational slack, and performance: empirical analysis of Japanese firms’ behavior," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 18(1), pages 245-284, February.
    6. Michael Sheppard, 2020. "The relationship between discretionary slack and growth in small firms," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 195-219, March.
    7. Wang, I. Kim & Qian, Lihong & Lehrer, Mark, 2017. "From technology race to technology marathon: A behavioral explanation of technology advancement," European Management Journal, Elsevier, vol. 35(2), pages 187-197.
    8. Ciprian Stan & Mike Peng & Garry Bruton, 2014. "Slack and the performance of state-owned enterprises," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 473-495, June.
    9. Ling Jin & Jun Hyeok Choi & Saerona Kim & Kwanghee Cho, 2022. "Slack Resources, Corporate Performance, and COVID-19 Pandemic: Evidence from China," IJERPH, MDPI, vol. 19(21), pages 1-21, November.
    10. Lau, Chung-Ming, 2011. "Team and organizational resources, strategic orientations, and firm performance in a transitional economy," Journal of Business Research, Elsevier, vol. 64(12), pages 1344-1351.
    11. Phuong V. Nguyen & Hien Thi Ngoc Huynh & Hoa Doan Xuan Trieu & Khoa T. Tran, 2019. "Internationalization, Strategic Slack Resources, and Firm Performance: The Case Study of Vietnamese Enterprises," JRFM, MDPI, vol. 12(3), pages 1-24, September.
    12. Jun-You Lin & Chih-Hai Yang, 2020. "Heterogeneity in industry–university R&D collaboration and firm innovative performance," Scientometrics, Springer;Akadémiai Kiadó, vol. 124(1), pages 1-25, July.
    13. Dante I. Leyva-de la Hiz & Vera Ferron-Vilchez & J. Alberto Aragon-Correa, 2019. "Do Firms’ Slack Resources Influence the Relationship Between Focused Environmental Innovations and Financial Performance? More is Not Always Better," Journal of Business Ethics, Springer, vol. 159(4), pages 1215-1227, November.
    14. 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).
    15. Shahzad, Ali M. & Mousa, Fariss T. & Sharfman, Mark P., 2016. "The implications of slack heterogeneity for the slack-resources and corporate social performance relationship," Journal of Business Research, Elsevier, vol. 69(12), pages 5964-5971.
    16. Gregory Stock & Noel Greis & William Fischer, 2018. "Organisational Slack And New Product Time To Market Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-34, May.
    17. Lu Jiao & Kevin Baird & Graeme Harrison, 2020. "Searching in the regulatory environment: The impact of regulatory search on firm innovativeness," Australian Journal of Management, Australian School of Business, vol. 45(1), pages 153-171, February.
    18. Bradley, Steven W. & Wiklund, Johan & Shepherd, Dean A., 2011. "Swinging a double-edged sword: The effect of slack on entrepreneurial management and growth," Journal of Business Venturing, Elsevier, vol. 26(5), pages 537-554, September.
    19. Josep M. Argilés-Bosch & Josep Garcia-Blandón & Diego Ravenda & Mónica Martínez-Blasco, 2018. "An empirical analysis of the curvilinear relationship between slack and firm performance," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 29(3), pages 361-397, December.
    20. Sung, Bongsuk & Soh, Jin Young & Park, Chun Gun, 2022. "Comparing government support, firm heterogeneity, and inter-firm spillovers for productivity enhancement: Evidence from the Korean solar energy technology industry," Energy, Elsevier, vol. 246(C).
    21. Wiersma, Eelke, 2017. "How and when do firms translate slack into better performance?," The British Accounting Review, Elsevier, vol. 49(5), pages 445-459.
    22. Hien Thi Ngoc Huynh & Phuong V. Nguyen & Khoa T. Tran, 2018. "Internationalization and Performance of Vietnamese Manufacturing Firms: Does Organizational Slack Matter?," Administrative Sciences, MDPI, vol. 8(4), pages 1-15, October.
    23. Woon Leong Lin, 2018. "Do Firm’s Organisational Slacks Influence the Relationship between Corporate Lobbying and Corporate Financial Performance? More Is Not Always Better," IJFS, MDPI, vol. 7(1), pages 1-23, December.
    24. Jonas Ingels & Broos Maenhout, 2018. "The impact of overtime as a time-based proactive scheduling and reactive allocation strategy on the robustness of a personnel shift roster," Journal of Scheduling, Springer, vol. 21(2), pages 143-165, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eurman:v:21:y:2003:i:6:p:740-749. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/115/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.