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When too many are not enough: Human resource slack and performance at the Dutch East India Company (1700–1795)

Author

Listed:
  • Stoyan Sgourev

    (ESSEC Business School)

  • Wim van Lent

    (Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School)

Abstract

Slack is an elusive concept in organizational research, with studies documenting a variety of relationships between slack and firm performance. We advocate treating slack not as a resource, but as a practice – a sequence of events and responses over time. A longitudinal analysis of the Dutch East India Company (1700–1795) highlights the use of slack as a response to a resource constraint (the shortage of skilled labor). After documenting the negative performance effects of skill shortage, we identify a trade-off in the use of human resource slack (number of sailors above what is operationally required), in which slack enhanced operational reliability, but reduced efficiency. Derived from a historical context, this trade-off has contemporary relevance and is helpful in reconciling contradictory evidence on slack.

Suggested Citation

  • Stoyan Sgourev & Wim van Lent, 2017. "When too many are not enough: Human resource slack and performance at the Dutch East India Company (1700–1795)," Post-Print hal-02138289, HAL.
    • Handle: RePEc:hal:journl:hal-02138289
    DOI: 10.1177/0018726717691340
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    Citations

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    Cited by:

    1. Samuel Adomako & Nguyen Phong Nguyen, 2020. "Human resource slack, sustainable innovation, and environmental performance of small and medium‐sized enterprises in sub‐Saharan Africa," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 2984-2994, December.
    2. Filippo Carlo Wezel & Martin Ruef, 2020. "Learning Against the Wind: Diversity and Performance on the Ships of the Dutch East India Company," Strategy Science, INFORMS, vol. 5(4), pages 330-347, December.
    3. Geoffrey Leuridan & Benoît Demil, 2017. "Ensuring resilience in a Critical Care Unit: a dynamic approach of slacking processes [Maintenir la fiabilité en situation extrême : une approche dynamique du slack organisationnel]," Post-Print hal-02860996, HAL.
    4. Geoffrey Leuridan & Benoît Demil, 2022. "Exploring the dynamics of slack in extreme contexts," Post-Print hal-03931024, HAL.
    5. Sualihu, Mohammed Aminu & Rankin, Michaela & Haman, Janto, 2021. "The role of equity compensation in reducing inefficient investment in labor," Journal of Corporate Finance, Elsevier, vol. 66(C).
    6. 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.
    7. Ghadhab, Imen & Nizar, Hamza & Benkraiem, Ramzi & Lakhal, Faten, 2023. "Cross-listing dynamics and labor investment efficiency: International evidence," International Review of Financial Analysis, Elsevier, vol. 88(C).

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