Behind organizational slack and firm performance in China: The moderating roles of ownership and competitive intensity

Ju, Min; Zhao, Hongxin

doi:10.1007/s10490-009-9148-1

Cited by 98 publications

(107 citation statements)

References 49 publications

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“…Ownership types evoke different institutional constraints and advantages (Gao, Murray, Kotabe & Lu, 2010;Peng et. al., 2004;Shenker & Von Glinow, 1994;Ju & Zhao, 2009). …”

Section: Effect Of Firm Ownershipmentioning

confidence: 99%

“…In most previous studies, organizational slack and firm performance primarily focus on either POE or SOE (Peng, 2004). Research related to FS and firm performance has considered ownership type as a moderate variable (Ju & Zhao, 2009) and HR slack and firm performance has also considered ownership type as a moderate variable (Fonseka et al, 2013). However, fresh investigation is needed to determine moderating effect of ownership between slack resources (i.e.…”

Section: Effect Of Firm Ownershipmentioning

confidence: 99%

“…Absorbed slack resources may constrain POEs and reduce their adaptive responses to business opportunities, decrease their flexibility, and decline their performance (Tan, 2002). On the other hand, unabsorbed slack resources in POEs help to improve performance (Ju & Zhao, 2009 …”

Section: Effect Of Firm Ownershipmentioning

confidence: 99%

“…Thereafter, the relationship between slack and performance becomes negative, as businesses become complacent and they utilize their resources inefficiently. The financial slack (FS)-performance relationship shows an inverse U-shape for firms in developed countries (Nohria & Gulati 1996;George 2005;Kim, Kim & Lee, 2008), and the same trajectory occurs in developing countries such as China's (Tan & Peng, 2003;Ju & Zhao, 2009;Quer, Claver & Rienda, 2007;Wrigh, FilatotChe, Hoskissio & Peng, 2005). Organizational efforts to enhance current performance explain the emergence of HR slack (Goerzen & Beamish, 2007).…”

Section: Introductionmentioning

confidence: 99%

“…POEs and SOEs) possess heterogeneous institutional advantages and disadvantages according to the different decision making behaviors (Boisot & Child, 1996;George, 2005;Tan & Peng, 2003). Thus, when achieving performance goals, firms with diverse ownership types are likely to make different resource allocation decisions and have different efficiencies in resource utilization (Ju & Zhao, 2009). Hence, it is worth to investigate the impact of FS and HR slack on firm performance in different types of ownerships.…”

Section: Introductionmentioning

confidence: 99%

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The interactions between different types of financial and human resource slacks on firm performance: Evidence from a developing country

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This paper investigates the effect of both FS and HR slack together on firm performance and how different levels of these slack resources affect performance of private-owned enterprises (POEs) and state-owned enterprises (SOEs). Hypotheses are tested using a longitudinal data set of 11,985 listed Chinese companies from 2000 to 2009. Findings reveal that the unabsorbed-financial slack and HR slack show an inverse U shape relationship on firm performance for both POEs and SOEs. However, a less-negative interaction occurs for unabsorbed-financial and HR slacks for POEs. The absorbedfinancial and HR slacks also shows an inverse U shape relationship on performance and this relationship does not have a significant negative effect on SOE's performance. The article concludes with theoretical contributions and practical implications of the findings.

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“…Ownership types evoke different institutional constraints and advantages (Gao, Murray, Kotabe & Lu, 2010;Peng et. al., 2004;Shenker & Von Glinow, 1994;Ju & Zhao, 2009). …”

Section: Effect Of Firm Ownershipmentioning

confidence: 99%

Section: Effect Of Firm Ownershipmentioning

confidence: 99%

Section: Effect Of Firm Ownershipmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The interactions between different types of financial and human resource slacks on firm performance: Evidence from a developing country

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How do female CEOs affect corporate environmental policies?

Zhang

Guo

Nurdazym

2022

Corp Soc Responsibility Env

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How do female Chief Executive Officers (CEOs) affect corporate environmental policies? This study develops a theoretical argument by incorporating the role of gender into the context of corporate environmental policies. Specifically, we differentiate corporate environmental policies into sustainable and unsustainable environmental policies. We also hypothesize a positive relationship between female CEOs and corporate sustainable environmental policies because women possess communal qualities and tend to be more stakeholder‐oriented compared with men. Moreover, we also propose a negative relationship between female CEOs and corporate unsustainable environmental policies because of women's risk aversion. We further predict that female CEOs with in‐group members will enhance the behavioral preferences of female leaders. Thus, we propose that the presence of in‐group members strengthens the relationship between female CEOs and corporate environmental policies. Using a longitudinal data set of Chinese listed firms from 2008 to 2018, we found strong empirical support for our predictions. Implications for the literature on gender and corporate environmental policies are also discussed.

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How does the economic policy uncertainty affect the relationship between financial slack and firm performance in emerging countries?

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This study investigates the moderating effect of economic policy uncertainty (EPU) on the relationship between slack resources and firm performance in emerging countries. By using 47,523 firm‐year observations from seven emerging market economies through the period of 2010–2018, the results show an inverse U‐shaped relationship between slack resources and firm performance. The findings also demonstrate that EPU acts as a negative moderator for the slack–performance relationship. In high EPU environments, the marginal benefit from one additional unit of slack is smaller relative to low EPU environments. This study contributes to the slack resources‐firm performance literature by emphasizing the role of the broader external environment as a moderator.

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Behind organizational slack and firm performance in China: The moderating roles of ownership and competitive intensity

Abstract: Firm performance, Competitive intensity, Organizational slack, Ownership,

Cited by 98 publications

References 49 publications

The interactions between different types of financial and human resource slacks on firm performance: Evidence from a developing country

The interactions between different types of financial and human resource slacks on firm performance: Evidence from a developing country

How do female CEOs affect corporate environmental policies?

How does the economic policy uncertainty affect the relationship between financial slack and firm performance in emerging countries?

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