The organizational slack and performance relationship: a configurational approach

Purpose – The purpose of this paper is to contribute to the organizational literature and improve the understanding of the slack and performance link by: examining the slack and performance relationship using a configurational approach and by considering equifinality and its possible effects on this relationship. Design/methodology/approach – Using cluster analysis, ANCOVA, and means comparisons this study identifies different configurations of slack and their associated performance implications. Findings – The results show that configurations with higher levels of slack outperform those with lower levels of slack suggesting a positive relationship between slack and firm performance. The findings also demonstrate that alternative configurations of slack can result in similar levels of performance suggesting the existence of equifinality in this relationship. Research limitations/implications – This study contributes to prior research by moving beyond traditional linear and contingency views of slack and c...