Publication Type
Journal Article
Version
publishedVersion
Publication Date
8-2005
Abstract
Empirical findings from publicly traded firms and behavioral arguments suggest a positive influence of resource slack on financial performance. While this area has remained unexplored in privately held firms, conceptual arguments indicate that resource constraints may enhance performance. Longitudinal data on 900 privately held firms confirm the differing influences of forms of slack on performance. Results indicate that a combination of behavioral and resource constraints arguments are necessary to explain the slack-performance relationship in privately held firms. The implications of these findings for theories of resources and entrepreneurship are discussed.
Keywords
Public companies, Financial performance, Private companies, Performance competency-based education, Resource management, Entrepreneurship, Resource allocation, Resource-based theory of the firm, Organizational behavior
Discipline
Business | Strategic Management Policy
Research Areas
Strategy and Organisation
Publication
Academy of Management Journal
Volume
48
Issue
4
First Page
661
Last Page
676
ISSN
0001-4273
Identifier
10.5465/AMJ.2005.17843944
Publisher
Academy of Management
Citation
GEORGE, Gerard.
Slack Resources and the Performance of Privately Held Firms. (2005). Academy of Management Journal. 48, (4), 661-676.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/4615
Copyright Owner and License
Publisher
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.5465/AMJ.2005.17843944