Swinging a double-edged sword: The effect of slack on entrepreneurial management and growth

Steven W. Bradley, Johan Wiklund, Dean A. Shepherd

Research output: Contribution to journalArticlepeer-review

119 Scopus citations

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 languageEnglish (US)
Pages (from-to)537-554
Number of pages18
JournalJournal of Business Venturing
Volume26
Issue number5
DOIs
StatePublished - Sep 1 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

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