Organizational slack and firm’s internationalization: A longitudinal study of high-technology firms

Where to Seek Strategic Assets for Competitive Catch-up? A configurational study of emerging multinational enterprises expanding into foreign strategic factor markets

“…This buffering role facilitates the motivation of strategic-asset-seeking FDI because it enables the firm to search broadly and continuously (Cui et al, 2014), and therefore increases the expectation for success (Vroom, 1964). However, a lack of unabsorbed slack can also motivate searching behaviours, as firms may be driven by the hunger for resource security (Cyert & March, 1963;Lin, Cheng, & Liu, 2009;Wiseman & Bromiley, 1996). These different financial positions are likely to motivate firms to seek different types of assets.…”

“…We used 3 (observed minimum), 4.5 (median), and 6 (observed maximum) as the anchor points for calibration. Unabsorbed slack was measured using the currentratio of the focal firm prior to the year of establishing strategic-asset-seeking FDI (Lin et al, 2009), which was sourced from the OSIRIS database to capture internal motivation. For calibration, we chose anchor points in line with the International Monetary Fund (IMF) standards for assessing Asian companies (IMF, 2014).…”

Successor characteristics, organisational slack, and change in the degree of firm internationalisation

“…This implies that resource constraints bridle managerial optimism. For example, Lin, Cheng, and Liu (2009) argue that if managers perceive that their levels of slack far exceed those of their competitors, they are likely to be overly optimistic about their global strategic positioning and to relax their hold on foreign market expansion. In other words, resource-based theory and resource-constraints arguments appear to diverge with regard to the effect of organisational slack.…”

The Relationship between Slack Resources and Performance: An Empirical Study from China

“…Second, slack resource characteristics include location [4] and accessibility (e.g., immediately versus deferred; [7]). Third, the two central purposes of slack resources are to act as a buffering mechanism to counter threats and also as a facilitator to exploit opportunities [21]. Why does slack resources emerge?…”