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Journal Article

Is Slack Good or Bad for Innovation?

Nitin Nohria and Ranjay Gulati
The Academy of Management Journal
Vol. 39, No. 5 (Oct., 1996), pp. 1245-1264
Published by: Academy of Management
Stable URL: http://www.jstor.org/stable/256998
Page Count: 20
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Is Slack Good or Bad for Innovation?
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Abstract

This article suggests that there is an inverse U-shaped relationship between slack and innovation in organizations: both too much and too little slack may be detrimental to innovation. Two related mechanisms governing this relationship are proposed: Slack fosters greater experimentation but also diminishing discipline over innovative projects, resulting in the hypothesized curvilinear relationship. Comprehensive worldwide data on 264 functional departments of two multinational corporations support the prediction.

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