THE EFFECTS OF SLACK RESOURCES AND ENVIRONMENTAL THREAT ON PRODUCT EXPLORATION AND EXPLOITATION.
In a U.S. sample of nonprofit professional theaters, we examine how slack resources interact with environmental threat appraisal to influence product exploration and exploitation. We find systematic variation depending on the extent to which a resource is rare and absorbed in operations, and the extent of perceived environmental threats. Absorbed, generic resources are associated with increased exploitation and decreased exploration. Unabsorbed resources, both generic and rare, result in higher exploration and lower exploitation, but only when perceived environmental threat is high. Overall, results reveal pragmatic decision making balancing the benefits of superior strategic position against the risks of jeopardizing viability.
Voss, Glenn B.1?Sirdeshmukh, Deepak2 dsirdes@ncsu.edu?Voss, Zannie Giraud3,4 zvoss@smu.edu
[1]Associate Professor in the Cox School of Business, Southern Methodist University;[2]Assistant Professor at the College of Management, North Carolina State University;[3]Chair of the Arts Administration and a Professor in both the Meadows School of the Arts and the Cox School of Business at Southern Methodist University;[4]Affiliate Professor at Euromed Marseille School of Management
