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Slack and Munificence: To what Extent is Slack Conditioned on Munificence? Extending the Behavioral Theory of the Firm

Slack and Munificence: To what Extent is Slack Conditioned on Munificence? Extending the Behavioral Theory of the Firm

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Описание
The accumulation and spending" of organizational slack is dependent on environmental munificence. Over five decades have passed since the "behavioral theory of the firm" formally introduced the idea of organizational slack. That theory constrained the accumulation of slack based on munificence in the organization's environment and suggested that in non-munificent environments organizations would shed themselves of slack. This work extends the "behavioral theory of the firm" by showing that munificence is of limited practical significance as a determinant of slack growth and decline. Removing munificence as a constraint increase the utility of the "behavioral theory of the firm". Prior slack strategies are the predominant determinant of current slack strategies and organizational structures based on resource ownership are changing. While this is not a new idea to those reading the relational contract or cooperative strategy literature it does offer a "slack strategy" to the rationale for changing organizational forms."