Impact of organizational slack on innovation outcomes
Hill, J., & Walton, A., PhD. (2021). Impact of organizational slack on innovation outcomes. Journal of Management & Engineering Integration, 14(1), 46-54.
This research analyzes the relationship between the impact of organizational slack on patent productivity as a proxy for innovation and the resulting firm performance by longitudinally investigating 114 U.S. firms. The role of slack as a moderated measure of innovation was also explored, with its impact on technology and non-technology industry firms compared. In study one, the evidence concluded that slack is positively correlated with innovation productivity, but the company type was not statistically significant. In addition, the study did not find an inversion in the relationship between slack and innovation that would produce a negative correlation as the level of slack in firms reaches a tipping point. Study two demonstrated a positively correlated relationship between the rate of innovation and firm growth. The presence of slack positively moderates this relationship, and this moderation effect increases for technology companies.