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Organizational or Frictional Equilibria, X-Efficiency, and the Rate of Innovation

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  • Harvey Leibenstein

Abstract

I. Introduction, 600. — II. Utility-effort relations, 601. — III. The theory of inert areas, 606. — IV. Inert areas and the inducement of change, 612. — V. The innovational-diffusion model, 617. — VI. Conclusions, 620.

Suggested Citation

  • Harvey Leibenstein, 1969. "Organizational or Frictional Equilibria, X-Efficiency, and the Rate of Innovation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 83(4), pages 600-623.
    • Handle: RePEc:oup:qjecon:v:83:y:1969:i:4:p:600-623.
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    Cited by:

    1. Andrew E. Clark & Carine Milcent, 2008. "Keynesian hospitals? Public employment and political pressure," PSE Working Papers halshs-00586792, HAL.
    2. Dennys Eduardo Rossetto & Roberto Carlos Bernardes & Felipe Mendes Borini & Cristiane Chaves Gattaz, 2018. "Structure and evolution of innovation research in the last 60 years: review and future trends in the field of business through the citations and co-citations analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 115(3), pages 1329-1363, June.
    3. Reynaud Benedicte, 1987. "Règles et l'incomplétude du contrat de travail dans le paradigme standard (les)," CEPREMAP Working Papers (Couverture Orange) 8742, CEPREMAP.
    4. Hussinger, Katrin & Dick, Johannes M.H. & Czarnitzki, Dirk, 2018. "Ownership concentration and innovativeness of corporate ventures," Research Policy, Elsevier, vol. 47(2), pages 527-541.
    5. Jürgen Peters, 2000. "Buyer Market Power and Innovative Activities," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 16(1), pages 13-38, February.
    6. Robert Gibbons, 2010. "Inside Organizations: Pricing, Politics, and Path Dependence," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 337-365, September.
    7. Lei Li, 2008. "Multinationality and technical efficiency: A neglected perspective," Management International Review, Springer, vol. 48(1), pages 39-64, February.
    8. K. J. Blois, 1974. "Some Comments on the Theory of Inert Areas and the Definition of X-Efficiency," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 88(4), pages 681-686.
    9. Min Ju & Hongxin Zhao, 2009. "Behind organizational slack and firm performance in China: The moderating roles of ownership and competitive intensity," Asia Pacific Journal of Management, Springer, vol. 26(4), pages 701-717, December.
    10. Boumediene Ramdani & Cherif Guermat & Kamel Mellahi, 2021. "The effect of downsizing on innovation outputs: The role of resource slack and constraints," Australian Journal of Management, Australian School of Business, vol. 46(2), pages 346-365, May.
    11. Barbara Harriss, 1978. "Access and the Cooperative: A Study of an Intermedium in Structural Change in Sri Lankan Dry Zone Paddy Cultivation," Development and Change, International Institute of Social Studies, vol. 9(2), pages 277-298, April.
    12. Ajay Agrawal & Christian Catalini & Avi Goldfarb & Hong Luo, 2018. "Slack Time and Innovation," Organization Science, INFORMS, vol. 29(6), pages 1056-1073, December.
    13. Wiklund, Johan & Baker, Ted & Shepherd, Dean, 2010. "The age-effect of financial indicators as buffers against the liability of newness," Journal of Business Venturing, Elsevier, vol. 25(4), pages 423-437, July.
    14. Emilio Boulianne & Charles H. Cho, 2009. "The Rise And Fall Of Webtrust," Post-Print halshs-00459412, HAL.
    15. 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).
    16. Altaf, Nufazil & Shah, Farooq, 2017. "Slack heterogeneity and firm performance: Investigating the relationship in Indian context," Research in International Business and Finance, Elsevier, vol. 42(C), pages 390-403.
    17. 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.
    18. Khoa T. Tran & Phuong V. Nguyen & Linh M. Nguyen, 2018. "The Role of Financial Slack, Employee Creative Self-Efficacy and Learning Orientation in Innovation and Organizational Performance," Administrative Sciences, MDPI, vol. 8(4), pages 1-32, December.
    19. Boulianne, Emilio & Cho, Charles H., 2009. "The rise and fall of WebTrust," International Journal of Accounting Information Systems, Elsevier, vol. 10(4), pages 229-244.
    20. Anil Arya & John Fellingham & Jonathan Glover & K. Sivaramakrishnan, 2000. "Capital Budgeting, the Hold-up Problem, and Information System Design," Management Science, INFORMS, vol. 46(2), pages 205-216, February.
    21. Roger A McCain, 2013. "Value Solutions in Cooperative Games," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 8528, January.
    22. 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.
    23. Elisa Conz & Giovanna Magnani & Antonella Zucchella & Alfredo Massis, 2023. "Responding to unexpected crises: The roles of slack resources and entrepreneurial attitude to build resilience," Small Business Economics, Springer, vol. 61(3), pages 957-981, October.
    24. You, Xialei & Jia, Shenghua & Dou, Junsheng & Su, Emma, 2020. "Is organizational slack honey or poison? Experimental research based on external investors' perception," Emerging Markets Review, Elsevier, vol. 44(C).
    25. Kamel Mellahi & Adrian Wilkinson, 2010. "A Study of the Association between Level of Slack Reduction Following Downsizing and Innovation Output," Journal of Management Studies, Wiley Blackwell, vol. 47(3), pages 483-508, May.

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