Underused resources and companies' growth: the influence of digital transformation and decision-making ability

Zhihui Tang () and Junzhen Zhou ()
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Zhihui Tang: Huadian Coal Industry Group Engineering Technology Co., Ltd., China
Junzhen Zhou: Zhongnan University of Economics and Law, China

Entrepreneurship and Sustainability Issues, 2025, vol. 12, issue 3, 44-60

Abstract: In the digital economy era, diverse resources remain a critical asset for businesses aiming to boost their competitiveness and secure sustainable growth. Organisational slack, as an underused resource, has increasingly captured researchers' interest, with varying impacts attributed to different types of slack. Using data from Chinese A-share listed firms from 2011 to 2019, this study discusses the influence of slack resource on companies' growth and the mechanisms of their effects in the digital setting. We conducted an empowering regression analysis with two-factor fixed effects on the dataset and found that absorbed slack facilitates companies' growth, whereas unabsorbed slack may hinder it. Simultaneously, managers with strong decision-making ability and deep digital transformation are also conducive to absorbed slack for organisational growth. A real case from a traditional coal mine company was conducted to confirm our findings and make additional discoveries. We contribute to the academic discourse by offering practical guidance for businesses on the strategic use of slack resources and integrating digital transformation initiatives.

Keywords: digital transformation; underused resources; organisational slack; organisational growth; management decision-making ability (search for similar items in EconPapers)
JEL-codes: J24 M10 M21 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouesi:v:12:y:2025:i:3:p:44-60

DOI: 10.9770/z2499568444

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