Slack, Planning and Organizational Performance: Evidence from the Arab Middle East

Abstract

This study uses data from the Arab Middle East, namely, the United Arab Emirates (UAE), to examine whether slack and planning (comprehensiveness of strategic decision making and extensiveness of strategic planning), which are of special importance at the moment in this recently established country, contribute towards or inhibit organizational performance. The interplay of slack and planning variables was also examined (moderating and mediating effects). The results of a survey of 174 public and private organizations show that both slack and comprehensiveness are important predictors of performance and that the impact of slack and comprehensiveness on performance varies with the age of an organization. Interestingly, this study shows that extensiveness does not influence performance, and even the age of an organization does not play a moderating role in this relationship. The location of this study brings up certain characteristics which contribute to explain its findings. I hope this paper to inspire scholars to study the determinants of performance in the troubled Arab Middle East region.