Do size and slack matter? exploring the multi-dimensions of organizational innovation

Abstract

Innovation, organization size and organizational slack are key concepts at the heart of organization theory. Innovation has been an outcome variable of central interest to organization theorists since it is an integral component for organizational adaptation, renewal and survival. Two particularly compelling issues related to innovation continue to intrigue researchers. The first is the relationship between organization size and innovation and the second is the dynamic between organization slack and innovation. To better understand the complex dynamics between organization size, slack and innovation, organizational innovation must be unbundled into two dimensions. The first dimension is innovation magnitude or the rate of innovation. The second dimension is innovation speed or the quickness of innovation adoption. In this study, the authors examine the way in which each of these two dimensions of innovation relates to both organizational size and organizational slack through an investigation of the commercial banking industry.