HCBE Faculty Articles
Title
Innovation and Recoverable Slack Interaction: How Does It Affect Firm Performance?
Document Type
Article
Publication Date
2011
Publication Title
Advances in Business Research
Volume
2
Issue/Number
1
First Page
1
Last Page
15
Abstract/Excerpt
This paper investigates the impact of the interaction effect between a slack variable and innovation on financial performance. Specifically, the interaction effect between recoverable slack resources and an innovation input on financial performance were analyzed using financial data of U.S firms in aerospace and computer science industries. An extensive review of literature on slack, innovation, and environmental shock develops the conceptual model. This study examines the relationship as representative of a specific bundle of resources governed by the strategic direction of management. The results suggest evidence of a positive and significant interaction effect under certain conditions.
NSUWorks Citation
Tworoger, Thomas; Chandler, L.; Scott, E.; and Stodder, J., "Innovation and Recoverable Slack Interaction: How Does It Affect Firm Performance?" (2011). HCBE Faculty Articles. 630.
https://nsuworks.nova.edu/hcbe_facarticles/630
