The incompatible findings of previous research suggested the necessity of more studies on this topic, in different economies, with diversified data. ( 2009) on high-technology firms in Taiwan found that high-discretion slack had a U-shaped effect on foreign sales, while low-discretion slack had a positive linear effect on the same. ![]() ( 2017) found a U-shaped relationship between financial and human resource slack and their impact on the export intensity of small and medium enterprises in France, Italy, and Spain. However, the estimated results of their study of Belgian firms showed that financial slack had no effect on export intensity, while human resource slack had a negative linear effect. ( 2017) hypothesized that financial slack and human resource slack had U-shaped relationships with firms’ export intensity. To the best of our knowledge, there have been only three studies related to this field, including Kiss et al. Moreover, research results from previous studies in this field remain contradictory. However, some scholars have expressed opposite opinions, arguing that slack resources could negatively affect organizations because they have not been used for value-generation processes, reflecting poor management or even an arbitrary distribution of resources that may generate agency problems ( Nohria and Gulati 1996 Tan and Peng 2003).Īlthough the concept and role of slack resources have been discussed for a long time, studies on the impact of slack resources on firms’ export behavior, such as export intensity, are extremely scarce. Slack also facilitates innovation and permits firms to more safely experiment with new strategies by introducing new products and entering new markets ( Moses 1992 Nohria and Gulati 1996). ![]() Some scholars have stated that slack resources are reserve resources that enterprises can use against threats or to exploit opportunities in the business environment. 2017), or the difference between the total number of resources and the amount of resources actually being used to guarantee normal production in the enterprise ( Cyert and March 1963 Bourgeois 1981). Slack resources are defined as the excess of a firm’s resources, compared with the average resource of the industry ( Paeleman et al. Aside from linear or U-shaped effects, slack resources could have inverse U-shaped relationships with firms’ export intensity. Second, the research results contributed to literature on slack resources, providing a new insight on their effects on firms’ export intensity. However, our research showed that, when there were too many slack resources, business activities in firms’ foreign markets, such as exports, could be reduced due to complacency among firm managers. In classic internalization studies, it has generally been believed that firms with access to greater resources are more likely to exploit foreign markets. ![]() First, our findings contributed to the international business literature. This study contributed new insights to international business and slack literatures. Therefore, firm managers need to consider the necessary level of redundancy for slack resources to avoid prodigality while doing business. ![]() Too few-or too many-slack resources are bad for export intensity. The empirical findings could have managerial practice implications at the firm level. Using longitudinal data of Vietnamese firms with a random effect model, the study found that financial slack had an inverted-U shaped effect meanwhile, human resource slack had no consistently significant effect on firms’ export intensity. The paper explored the effects of financial and human resource slacks on firms’ export intensity.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |