Slack Resources and Firm Performance: A Meta-Analysis
Management and International Business
Although organizational research posits various relationships between a firm's slack resources and performance, findings to date have been ambiguous. To provide insight into this relationship, this study employed a meta-analysis based on 80 samples from 66 studies (n = 54,249). Results provided evidence of a positive relationship among all three slack types (i.e., available, recoverable, and potential) and financial performance and showed that studies controlling for industry-relative performance demonstrated a stronger positive potential slack-performance relationship than those not including these controls. The analysis also found that studies employing lagged slack measures did not show a stronger positive slack-performance relationship than those employing current year measures for either recoverable or potential slack, a result counter to the one hypothesized. Overall, results highlight the importance of additional research into intervening factors impacting the slack-performance relationship. (C) 2002 Elsevier Inc. All rights reserved.
Journal of Business Research
Lohrke, F. T.,
Fornaciari, C. J.,
Turner, R. A.
(2004). Slack Resources and Firm Performance: A Meta-Analysis. Journal of Business Research, 57(6), 565-574.
Available at: http://aquila.usm.edu/fac_pubs/3109