Organizational slack and innovativeness: the moderating role of institutional transition in the Asian financial crisis

  • Saehwa HongEmail author
  • Hyung-Deok Shin
Original Article


Research has suggested that organizational slack can positively or negatively affect the innovativeness of a firm; however, the point at which such slack has a more salient impact remains unclear. This study adds to the literature by highlighting how the effects of organizational slack may differ depending on institutional environments, a market-oriented or a government-driven institutional environment. We posit an inverted U-shaped relationship between organizational slack and innovati`veness. We further hypothesize that institutional environments moderate this relationship. We find broad support for these arguments in a comprehensive data set representing South Korean manufacturing firms from 1992 to 2009.


Organizational slack Innovativeness Institutional change 



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© Springer Nature Limited 2019

Authors and Affiliations

  1. 1.Department of Business AdministrationKutztown University of PennsylvaniaKutztownUSA
  2. 2.School of Business AdministrationHongik UniversitySeoulSouth Korea

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