The Impact of Organizational Slack on Technological Innovation: Evidence from Henan Province in China

Although organizational slack research posits various relationships between a firm's slack resources and innovation, findings to date have been ambiguous. To provide insight into this relationship, this paper studies the impact of organizational slack on technological innovation by using empirical analysis based on the data get from 283 firms in Henan Province by questionnaire. The result shows that organizational slack is positively related to technological innovation. The analysis also finds that there is the inverted U-shaped relationship between a firm's slack resources and technological innovation, but this relationship is not significant. Overall, results highlight the importance of additional research into intervening factors impacting the slack-innovation relationship.