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The Effect of Organizational Slack on Innovation Performance: An Empirical Study of High-Tech Industry in China
Abstract
To compete through disruptive innovation, organisations allocate part of its resources as a buffer to support its capability of disruptiveness or to face challenges created by competitors. These resources could be in terms of human resources, technology, equipment, information and/or financial resources. Literature refers to the buffer of resources as organisational slack. This research considers high-tech industry in China and investigates the relationship between the characteristics of the organisation's governance body, organisational slack and innovation performance. Data required by our research were obtained from various national databases available in the library of Zhejiang University. Data from 233 high-tech organisations listed in Chinese stock market were analysed. The results indicate that the interaction of the organisational slack of an organisation with various characteristics of the governance body partially moderates the innovation performance.
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