Organizational Slack Research in China:An Overview and Outlook

Abstract

Based on the resource-based theory, enterprises are paying more and more attention to the rational use of internal resources to enhance their competitiveness. China is in the stage of economic transformation, and many enterprises have a large amount of redundant resources. Organizational slack is regarded as resources that are kept inside the organisation in excess of actual needs and controlled by individuals or small groups, and this kind of resources is a "double-edged sword". Different scholars have carried out detailed studies on organizational slack and reached different conclusions. This paper analyses and summarizes the concept, classification, measurement, and current status of research on organizational slack. Specifically, the research on organizational slack includes the antecedents of organizational slack, and the consequences of organizational slack (performance, innovation, corporate social responsibility, mergers and acquisitions, and internationalisation, entrepreneurship and growth, and strategic change, etc.). Based on the summary of existing research, this study proposes future research directions, and these discussions will help enterprises to correctly understand as well as rationally use redundant resources, and improve enterprise performance and innovation.