Organizational Slack, Firm Performance, And The Role Of Industry

Scholars of the relationship between organizational slack and performance isinconclusive, but in transition economies, people often think the organization’sperformance with the increase of relaxation decreased tissue relaxation enterprises,especially state-owned enterprises is low performance of public reason. Therelationship between organizational slack and performance are not always linearnegative correlation, it may be U-shaped and inverted U-shaped (slack has an idealrange, below or above this range, the impact on performance is negative).Slack of foreign issues for the organization to have more research, and haveachieved certain results. However, at home, for the study of organizational issues haslittle relaxation. In view of organization theory, organizational slack in the importantposition and its important role in practice. This paper is to study the relaxation andcan be used to absorb the relaxation and the relationship between companyperformance, when the industry as the control factors can increase the predictabilityof performance of the company, and empirical research methods to reveal therelationship between them.The empirical results show that: available slack can be used between an invertedU-shaped or U curve relationship between absorb slack and performance is aninverted U-shaped or U-shaped curve relationship. When the industry as a controlfactor in the company will increase the reliability of forecasts partial support.Organization, and too much laxity has a negative impact on performance, moderatelevel of laxity on the performance benefit.