In the review of literature the theories concerning organizational slack and its effect on various organizational aspects are debated. The literature review is structured as follows. First the concept of organizational slack is discussed in detail. In this regard, definitions of organizational slack from prior literature and commonly used categorizations are described. In addition, the role of slack as well as its antecedents, measurement and possible utilization are explained. In the next section the author addresses the effect of slack on performance. In this context, potentially intervening variables on the relationship of the two factors are identified from existing literature. Finally, in the last section of the literature review the relationship of slack and performance is discussed in the context of external threat. Specifically, the recent financial crisis is brought up as an example of high external uncertainty and scarcity of financial resources.
KeywordsRisk Taking Entrepreneurial Orientation Political Behavior Cash Holding Dividend Payout
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