The Impact of Slack on the Innovation of Material Firms

Abstract

Although organizational slack research posits various relationships between a firm’s slack resources and innovation, findings to date have been ambiguous. To provide insight into this relationship, this paper studies the impact of slack resources on the innovation performance of material firms by using empirical analysis based on the data get from 54 firms in Henan Province by questionnaire. The result shows that the relationship between slack resources and innovation in material firms is the inverted U-shaped. Overall, results highlight the importance of additional research into intervening factors impacting the slack–innovation relationship.