How Competitive Action Mediates the Resource Slack–Performance Relationship: A Meta‐Analytic Approach

34 Pages Posted: 14 Dec 2018

See all articles by Christina Carnes

Christina Carnes

University of Nebraska at Lincoln

Kai Xu

University of Texas at San Antonio

David G. Sirmon

Texas A&M University

Reha Karadag

University of Nebraska at Lincoln

Date Written: January 2019

Abstract

The fungibility of organizational slack provides firms significant latitude in addressing both internal and market pressures. A vast literature suggests that slack influences firm performance; however, the empirical record is mixed, and the underlying mechanism linking slack to performance remains ambiguous. We address these issues by theoretically expanding the slack–performance model to include mediation. Specifically, we develop and test a model in which a firm’s competitive behaviours direct the utilization of slack toward the realization of firm performance. Our meta‐analytic‐based structural equation model supports partial mediation, showing that competitive behaviours provide some resolution to the conflicted understanding of how slack affects performance. Further, we provide value to the slack literature by consolidating the evidence for the effects of various types and forms of organizational slack. Beyond providing robustness to our theoretical model, doing so offers a more complete understanding of how operationalizations of slack and performance outcomes matter.

Keywords: competitive behaviour, meta‐analytic mediation, performance, slack

Suggested Citation

Carnes, Christina and Xu, Kai and Sirmon, David G. and Karadag, Reha, How Competitive Action Mediates the Resource Slack–Performance Relationship: A Meta‐Analytic Approach (January 2019). Journal of Management Studies, Vol. 56, Issue 1, pp. 57-90, 2019, Available at SSRN: https://ssrn.com/abstract=3300984 or http://dx.doi.org/10.1111/joms.12391

Christina Carnes (Contact Author)

University of Nebraska at Lincoln ( email )

Lincoln, NE 68588
United States

Kai Xu

University of Texas at San Antonio

One UTSA Circle
San Antonio, TX 78249
United States

David G. Sirmon

Texas A&M University ( email )

430 Wehner
College Station, TX 77843-4218
United States

Reha Karadag

University of Nebraska at Lincoln ( email )

Lincoln, NE 68588
United States

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