Are more resources always better for growth? Resource stickiness in market and product expansion

Yuri Mishina, Timothy G. Pollock, Joseph F. Porac

Research output: Contribution to journalArticle

310 Scopus citations

Abstract

We examine how managerial growth logics combine with financial and human resource slack to influence the short-term revenue growth of a sample of 112 manufacturing firms drawn from a unique database provided by the Ewing Marion Kauffman Foundation. Our results provide evidence that firms pursuing product expansion logics generally grow more slowly than firms that are not expanding their product base, but that financial slack positively moderates this relationship. We also find that human resource slack enhances short-term market expansion, but slows down short-term product expansion. We discuss the implications of these results for resource-based views of growth.

Original languageEnglish (US)
Pages (from-to)1179-1197
Number of pages19
JournalStrategic Management Journal
Volume25
Issue number12
DOIs
StatePublished - Dec 1 2004

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management

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