Operational Slack and Venture Survival
نویسندگان
چکیده
S lack can act as a double-edged sword. While it can buffer against environmental threats to help ensure business continuity, slack can also be costly and reduce profitability. In this study we focus on operational slack, the form related to the firm’s production processes. We investigate the role of operational slack on firm survival during its venture stage when its survival is significantly challenged by environmental threats. Specifically, we explore how change in three types of environmental uncertainty, namely dynamism, complexity, and lack of munificence, affect the relationship between operational slack and venture survival. Results suggest that with an increase in environmental uncertainty, operational slack lowers the likelihood of venture failure.
منابع مشابه
The Role of Operational Capabilities in Enhancing New Venture Survival: A Longitudinal Study
W e investigate relationships between operational capabilities and new venture survival. On the basis of operations management and entrepreneurship literature, we develop a contingency framework of operational capabilities especially appropriate at different life phases of a new venture’s evolution. We expect that in the first years of a new venture’s life, entrepreneurs should emphasize high i...
متن کاملClear and Present Danger: Planning and New Venture Survival amid Political and Civil Violence
Many entrepreneurs in developing economies face unstable environments due to violence and civil unrest. Yet, we know very little about how environments characterized by high levels of political and civil violence affect new venture processes and survival. Moreover, it is unclear whether standard theories about organizational strategy, such as planning, hold true in such environments. We explore...
متن کاملClear and Present Danger: Planning and New Venture Survival amid Political and Civil Violence
Many entrepreneurs in developing economies face unstable environments due to violence and civil unrest. Yet, we know very little about how environments characterized by high levels of political and civil violence affect new venture processes and survival. Moreover, it is unclear whether standard theories about organizational strategy, such as planning, hold true in such environments. We explore...
متن کاملDecomposing profit efficiency using a slack-based directional distance function
This paper develops a slack-based decomposition of profit efficiency based on a directional distance function.
متن کاملCongestion Status Identification Using Slack Based Models in Data Envelopment Analysis
Congestion is a wasteful stage of the production process where outputs are reduced due to excessive amount of inputs. There are several approaches in data envelopment analysis (DEA) literatures to treat congestion. The concept of strong and weak congestion first developed by Tone and Sahoo [Tone, K., Sahoo, B.K., 2004. Degree of scale economies and congestion: A unified DEA approach. European J...
متن کامل