Swinging a double-edged sword: The effect of slack on entrepreneurial management and growth
AbstractResource slack represents a double-edged sword, simultaneously fueling and hindering growth. Drawing on Penrose's growth theory and Stevenson's entrepreneurial management theory, we have developed and tested a conceptual model that provides a more nuanced account of the resource slack-growth relationship. Using a large dataset spanning six years, we have found that slack has a positive direct effect on growth but a negative effect on entrepreneurial management, and that entrepreneurial management has a positive effect on growth. Our empirical and conceptual findings are important to the development of firm growth theory and explicate causal mechanisms transforming slack into firm-level outcomes.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Business Venturing.
Volume (Year): 26 (2011)
Issue (Month): 5 (September)
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Web page: http://www.elsevier.com/locate/jbusvent
Entrepreneurial management Slack Penrose Growth Resources Mediating relationship Corporate entrepreneurship;
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