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Slack and Munificence
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The accumulation and "spending" of organizational §slack is dependent on environmental munificence. §Over five decades have passed since the "behavioral §theory of the firm" formally introduced the idea of §organizational slack. That theory constrained the §accumulation of slack based on munificence in the §organization's environment and suggested that in non-§munificent environments organizations would shed §themselves of slack. This work extends §the "behavioral theory of the firm" by showing that §munificence is of limited practical significance as §a determinant of slack growth and decline. Removing §munificence as a constraint increase the utility of §the "behavioral theory of the firm". Prior slack §strategies are the predominant determinant of §current slack strategies and organizational §structures based on resource ownership are changing. §While this is not a new idea to those reading the §relational contract or cooperative strategy §literature, it does offer a "slack strategy" to the §rationale for changing organizational forms.
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