Swinging a double-edged sword: The effect of slack on entrepreneurial management and growth

Steven Bradley (), Johan Wiklund and Dean A. Shepherd

Journal of Business Venturing, 2011, vol. 26, issue 5, 537-554

Abstract: Resource slack represents a double-edged sword, simultaneously fueling and hindering growth. Drawing on Penrose's growth theory and Stevenson's entrepreneurial management theory, we have developed and tested a conceptual model that provides a more nuanced account of the resource slack-growth relationship. Using a large dataset spanning six years, we have found that slack has a positive direct effect on growth but a negative effect on entrepreneurial management, and that entrepreneurial management has a positive effect on growth. Our empirical and conceptual findings are important to the development of firm growth theory and explicate causal mechanisms transforming slack into firm-level outcomes.

Keywords: Entrepreneurial; management; Slack; Penrose; Growth; Resources; Mediating; relationship; Corporate; entrepreneurship (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbvent:v:26:y:2011:i:5:p:537-554

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