Publication Type

Journal Article

Version

Postprint

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

Additional URL

http://dx.doi.org/10.5465/AMJ.2005.17843944

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