Organizational slack, national institutions and innovation effort around the world

Joel Baker Malen, Paul M. Vaaler

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

We develop and test a cross-level theoretical framework assuming that countries differ in national corporate governance institutions (NCGIs) protecting firm shareholders and employees, and that such NCGI protections moderate the firm-level relationship between organizational slack and innovation effort, that is, the purposeful allocation of firm resources toward the development of new products and services (as distinct from the new products and services themselves). We find support for framework predictions in two-stage estimated dependent variable analyses of organizational slack and institutional protections of shareholders and employees at more than 7000 firms from 29 countries observed from 1991 to 2005. Stronger shareholder protections diminish while stronger employee protections magnify slack effects on innovation effort. Our findings contribute to IB research investigating how country-level governance institutions influence firm-level behavior and performance.

Original languageEnglish
Pages (from-to)782-797
Number of pages16
JournalJournal of World Business
Volume52
Issue number6
DOIs
Publication statusPublished - 2017 Nov 1
Externally publishedYes

Fingerprint

Innovation
Organizational slack
Employees
New services
New products
Corporate governance
Shareholders
Theoretical framework
Organizational innovation
Shareholder protection
Firm resources
Governance
Prediction

Keywords

  • Behavioral theory of the firm
  • Institutional theory
  • International management
  • Multi-level modeling
  • Policy environment
  • Technology and innovation management

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Marketing

Cite this

Organizational slack, national institutions and innovation effort around the world. / Malen, Joel Baker; Vaaler, Paul M.

In: Journal of World Business, Vol. 52, No. 6, 01.11.2017, p. 782-797.

Research output: Contribution to journalArticle

@article{25e87b8f48624bc7ba419565554fa75e,
title = "Organizational slack, national institutions and innovation effort around the world",
abstract = "We develop and test a cross-level theoretical framework assuming that countries differ in national corporate governance institutions (NCGIs) protecting firm shareholders and employees, and that such NCGI protections moderate the firm-level relationship between organizational slack and innovation effort, that is, the purposeful allocation of firm resources toward the development of new products and services (as distinct from the new products and services themselves). We find support for framework predictions in two-stage estimated dependent variable analyses of organizational slack and institutional protections of shareholders and employees at more than 7000 firms from 29 countries observed from 1991 to 2005. Stronger shareholder protections diminish while stronger employee protections magnify slack effects on innovation effort. Our findings contribute to IB research investigating how country-level governance institutions influence firm-level behavior and performance.",
keywords = "Behavioral theory of the firm, Institutional theory, International management, Multi-level modeling, Policy environment, Technology and innovation management",
author = "Malen, {Joel Baker} and Vaaler, {Paul M.}",
year = "2017",
month = "11",
day = "1",
doi = "10.1016/j.jwb.2017.07.001",
language = "English",
volume = "52",
pages = "782--797",
journal = "Journal of World Business",
issn = "1090-9516",
publisher = "Elsevier Inc.",
number = "6",

}

TY - JOUR

T1 - Organizational slack, national institutions and innovation effort around the world

AU - Malen, Joel Baker

AU - Vaaler, Paul M.

PY - 2017/11/1

Y1 - 2017/11/1

N2 - We develop and test a cross-level theoretical framework assuming that countries differ in national corporate governance institutions (NCGIs) protecting firm shareholders and employees, and that such NCGI protections moderate the firm-level relationship between organizational slack and innovation effort, that is, the purposeful allocation of firm resources toward the development of new products and services (as distinct from the new products and services themselves). We find support for framework predictions in two-stage estimated dependent variable analyses of organizational slack and institutional protections of shareholders and employees at more than 7000 firms from 29 countries observed from 1991 to 2005. Stronger shareholder protections diminish while stronger employee protections magnify slack effects on innovation effort. Our findings contribute to IB research investigating how country-level governance institutions influence firm-level behavior and performance.

AB - We develop and test a cross-level theoretical framework assuming that countries differ in national corporate governance institutions (NCGIs) protecting firm shareholders and employees, and that such NCGI protections moderate the firm-level relationship between organizational slack and innovation effort, that is, the purposeful allocation of firm resources toward the development of new products and services (as distinct from the new products and services themselves). We find support for framework predictions in two-stage estimated dependent variable analyses of organizational slack and institutional protections of shareholders and employees at more than 7000 firms from 29 countries observed from 1991 to 2005. Stronger shareholder protections diminish while stronger employee protections magnify slack effects on innovation effort. Our findings contribute to IB research investigating how country-level governance institutions influence firm-level behavior and performance.

KW - Behavioral theory of the firm

KW - Institutional theory

KW - International management

KW - Multi-level modeling

KW - Policy environment

KW - Technology and innovation management

UR - http://www.scopus.com/inward/record.url?scp=85027458398&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85027458398&partnerID=8YFLogxK

U2 - 10.1016/j.jwb.2017.07.001

DO - 10.1016/j.jwb.2017.07.001

M3 - Article

VL - 52

SP - 782

EP - 797

JO - Journal of World Business

JF - Journal of World Business

SN - 1090-9516

IS - 6

ER -