Outside The Enterprise Environment Organizational Slack And Firm Performance

Organizational slack was first proposed in the 1960s. It has been studied extensively and deeply by scholars since the first minute. especially the relationship between organizational slack and corporate performance. However, most researches just focus on these two objects, ignoring the influence of other elements, in particular the environmental factors outside the enterprises. Different environments have different effects on their way of gaining profits, using resources and the value of resources, since each enterprise is embedded in a specific external environment. In addition, organizational slack is also a kind of special resource, the external environment will certainly have a profound impact on the relationship between organizational slack and corporate performance. However, after studying the existing researches, it is found that few of them refer to the external environment influence on the relationship between organizational slack and corporate performance. This essay takes this blind spot as an entry point, draws the external environment into the research frame, divides it into two dimensions, inclusive and dynamic environment, and discusses the impact respectively. Hypotheses and models are proposed, adjustment for metrics is made, and a new index system is established after detailed literature study. Moreover, the financial data of 313 listed companies is used for empirical analysis. It indicates that organizational slack plays the role of both promotion and inhibition to corporate performance, which leads to an inverted-U shape relationship; the environmental capacity makes a negative regulation, the inverted-U curve flattened because of it; the environmental dynamic makes a positive regulation, and the inverted-U curve becomes steeper.The economic situation and market condition of China is fairly volatile and complex, we should not only comprehensively measure the positive and negative role of redundant resources in corporate, but also rationalize the redundant resource level according to the external environment, maximize the positive effect to the corporate. This is the significance of this study to the enterprise.