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Swinging a double-edged sword: The effect of slack on entrepreneurial management and growth

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Author Info

  • Bradley, Steven W.
  • Wiklund, Johan
  • Shepherd, Dean A.

Abstract

Resource 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 Info

Article provided by Elsevier in its journal Journal of Business Venturing.

Volume (Year): 26 (2011)
Issue (Month): 5 (September)
Pages: 537-554

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Handle: RePEc:eee:jbvent:v:26:y:2011:i:5:p:537-554

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Web page: http://www.elsevier.com/locate/jbusvent

Related research

Keywords: Entrepreneurial management Slack Penrose Growth Resources Mediating relationship Corporate entrepreneurship;

References

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Cited by:
  1. Wincent, Joakim & Thorgren, Sara & Anokhin, Sergey, 2014. "Entrepreneurial orientation and network board diversity in network organizations," Journal of Business Venturing, Elsevier, vol. 29(2), pages 327-344.

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