The moderating effect of organizational slack on the relation between perceptions of support for innovation and organizational climate

Abstract

Purpose

The goal of this paper is to examine how firms employ slack resources to enhance the relationship between organizational climate and perceptions of support for innovation to obtain sustainable competitive advantages.

Design/methodology/approach

The paper reviews the different contributions to the study of the relation between dimensions of the organizational climate, perceptions of support for innovation and organizational slack. Building on previous research, a series of hypotheses are formulated on the influence of the dimensions of organizational climate on perceptions of support for innovation and on how organizational slack moderates these relations. In contrast to earlier studies, the paper's work is based on managers' perceptions. A sample of 202 quality managers is then used to verify empirically the hypotheses which have been proposed. Finally, the main conclusions of the research are presented.

Findings

The results of the investigation reveal first, that the relation between the dimensions of organizational climate, perceptions of support for innovation and performance is moderated by organizational slack. Second, that a strong connection exists between the different dimensions of organizational climate. Finally, the results of the research also show that a strong connection exists between the different dimensions of organizational climate and perceptions of support for innovation.

Research limitations/implications

The conclusions of this study may be subject to several limitations that suggest further possibilities for empirical research. First, survey data based on self‐reports may be subject to social desirability bias. Second, the cross‐sectional nature of the research allows us to analyze only a specific situation in time of the organizations studied, not their overall conduct through time. Future research should place more emphasis on longitudinal studies.

Practical implications

This paper maintains that the relation between the different dimensions of organizational climate, perceptions of support for innovation and performance are determined and limited by the nature and variety of resources that the organization can bundle and apply to the maintenance and development of competitive advantages, according to the availability of organizational slack to be applied directly to organizational climate and perceptions of support for innovation.

Originality/value

The paper has provided evidence of how managers, depending on the presence or absence of slack, combine the dimensions of organizational climate differently to create the perception of support for innovation necessary to implement innovations, which in both cases means improvement in the organization's performance.

Citation

Ruiz‐Moreno, A., García‐Morales, V.J. and Llorens‐Montes, F.J. (2008), "The moderating effect of organizational slack on the relation between perceptions of support for innovation and organizational climate", Personnel Review, Vol. 37 No. 5, pp. 509-525. https://doi.org/10.1108/00483480810891655