How do managers decide on internationalization processes? The role of organizational slack and performance feedback |
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| Institution: | 1. James Madison University, Department of Management, 800 S. Main Street, Harrisonburg, VA 22801, United States;2. Division of Management and Entrepreneurship, University of Oklahoma, Norman, OK 73019, United States;1. University of Wyoming, College of Business, 1000 E. University Ave., Laramie, WY 82071, USA;2. Elon University, Love School of Business, 314 E. Haggard Avenue, Elon, NC 27244, USA |
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| Abstract: | This study draws on the behavioral theory of the firm to the postulate relationships between organizational slack and performance aspirations, and internationalization processes. Based on longitudinal data (2000–2008) from 772 publicly listed firms in Taiwan, the findings indicate that organizational slack significantly influences the internationalization processes. Specifically, firms with high organizational slack that have performance that falls below aspirations managers are more likely to exhibit (1) a rapid pace, (2) a wider scope, and (3) an irregular rhythm in their internationalization processes. In addition, we observed an interaction effect between performance feedback and different levels of slack on the internationalization processes. |
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| Keywords: | Behavioral theory of the firm (BOTF) Organizational slack Performance feedback Internationalization processes |
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