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Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Organizational Slack in the Global Information Technology Industry

Organizational Slack in the Global Information Technology Industry
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Author(s): Perry Sadorsky (York University, Canada)
Copyright: 2006
Pages: 4
Source title: Emerging Trends and Challenges in Information Technology Management
Source Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59904-019-6.ch011
ISBN13: 9781616921286
EISBN13: 9781466665361


Non-deployed resources (like cash and marketable securities), or in some cases, deployed but easily recoverable, resources (like sales and administration expenses) are termed slack resources and become the basis for managerial discretion. This study examines the relationship between organizational slack and firm performance in the global information technology industry. Results from a structural equation model show that organizational slack has a negative and significant impact on growth and profit performance which supports the predictions of agency theory. Market performance, however, has no impact on organizational slack.

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