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Underused resources and companies' growth: the influence of digital transformation and decision-making ability

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  • Zhihui Tang

    (Huadian Coal Industry Group Engineering Technology Co., Ltd., China)

  • Junzhen Zhou

    (Zhongnan University of Economics and Law, China)

Abstract

In the digital economy era, diverse resources remain a critical asset for businesses aiming to boost their competitiveness and secure sustainable growth. Organisational slack, as an underused resource, has increasingly captured researchers' interest, with varying impacts attributed to different types of slack. Using data from Chinese A-share listed firms from 2011 to 2019, this study discusses the influence of slack resource on companies' growth and the mechanisms of their effects in the digital setting. We conducted an empowering regression analysis with two-factor fixed effects on the dataset and found that absorbed slack facilitates companies' growth, whereas unabsorbed slack may hinder it. Simultaneously, managers with strong decision-making ability and deep digital transformation are also conducive to absorbed slack for organisational growth. A real case from a traditional coal mine company was conducted to confirm our findings and make additional discoveries. We contribute to the academic discourse by offering practical guidance for businesses on the strategic use of slack resources and integrating digital transformation initiatives.

Suggested Citation

  • Zhihui Tang & Junzhen Zhou, 2025. "Underused resources and companies' growth: the influence of digital transformation and decision-making ability," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 12(3), pages 44-60, March.
    • Handle: RePEc:ssi:jouesi:v:12:y:2025:i:3:p:44-60
    DOI: 10.9770/z2499568444
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    References listed on IDEAS

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    1. Boso, Nathaniel & Danso, Albert & Leonidou, Constantinos & Uddin, Moshfique & Adeola, Ogechi & Hultman, Magnus, 2017. "Does financial resource slack drive sustainability expenditure in developing economy small and medium-sized enterprises?," Journal of Business Research, Elsevier, vol. 80(C), pages 247-256.
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    Keywords

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    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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