Organizational slack and firm's internationalization: A longitudinal study of high-technology firms

Abstract

We employ both organization theory and economic theory for exploring how the effects of high-discretion organizational slack and low-discretion organizational slack impact the degree of firm's internationalization. We tested hypotheses using longitudinal data (2000-2005) from 179 high-technology publicly listed companies in Taiwan. The results indicate a U-shaped relationship exists between high-discretion organizational slack and the internationalization of firms. In contrast, low-discretion organizational slack presents a positive linear relationship with the internationalization of firms.Organizational slack High-discretion organizational slack Low-discretion organizational slack Internationalization