Swinging a Double-Edged Sword: The Effect of Slack on Entrepreneurial Management and Growth

Posted: 18 Mar 2015

See all articles by Steven W. Bradley

Steven W. Bradley

Baylor University

Johan Wiklund

Syracuse University

Dean A. Shepherd

Indiana University - Kelley School of Business - Management & Entrepreneurship

Date Written: May 1, 2011

Abstract

Resource slack represents a double-edged sword, simultaneously fueling and hindering growth. Drawing on Penrose's growth theory and Stevenson's entrepreneurial management theory, we have developed and tested a conceptual model that provides a more nuanced account of the resource slack–growth relationship. Using a large dataset spanning six years, we have found that slack has a positive direct effect on growth but a negative effect on entrepreneurial management, and that entrepreneurial management has a positive effect on growth. Our empirical and conceptual findings are important to the development of firm growth theory and explicate causal mechanisms transforming slack into firm-level outcomes.

Keywords: Entrepreneurial management; Slack; Penrose; Growth; Resources; Mediating relationship; Corporate entrepreneurship

Suggested Citation

Bradley, Steven W. and Wiklund, Johan and Shepherd, Dean A., Swinging a Double-Edged Sword: The Effect of Slack on Entrepreneurial Management and Growth (May 1, 2011). Journal of Business Venturing, Vol. 26, No. 5, 2011, Available at SSRN: https://ssrn.com/abstract=2402839

Steven W. Bradley (Contact Author)

Baylor University ( email )

PO Box 98011
Waco, TX 76798-8011
United States

HOME PAGE: http://https://business.baylor.edu/directory/?id=Steve_Bradley

Johan Wiklund

Syracuse University ( email )

Whitman School of Management
720 University Avenue
Syracuse, NY 13244-2130
United States

Dean A. Shepherd

Indiana University - Kelley School of Business - Management & Entrepreneurship ( email )

Bloomington, IN 47405
United States
812-856-5220 (Phone)

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