Abstract
Resource slack represents a double-edged sword, simultaneously fueling and hindering growth. Drawing on Penrose's growth theory and Stevenson's entrepreneurial management theory, we have developed and tested a conceptual model that provides a more nuanced account of the resource slack-growth relationship. Using a large dataset spanning six years, we have found that slack has a positive direct effect on growth but a negative effect on entrepreneurial management, and that entrepreneurial management has a positive effect on growth. Our empirical and conceptual findings are important to the development of firm growth theory and explicate causal mechanisms transforming slack into firm-level outcomes.
Original language | English (US) |
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Pages (from-to) | 537-554 |
Number of pages | 18 |
Journal | Journal of Business Venturing |
Volume | 26 |
Issue number | 5 |
DOIs | |
State | Published - Sep 2011 |
Keywords
- Corporate entrepreneurship
- Entrepreneurial management
- Growth
- Mediating relationship
- Penrose
- Resources
- Slack
ASJC Scopus subject areas
- Business and International Management
- Management of Technology and Innovation