The operationalization of antifragility through organizational slack and the moderating effect of firms reliance on collaborative networks

Abstract

Purpose

The present article draws from the behavioral theory of the firm, and it explores whether various dimensions of organization slack can be employed as variables to measure organizations’ antifragility during times of uncertainty such as the Covid-19 pandemic. Furthermore, considering the limitations and regulations put into place during the most recent pandemic, the present study seeks to explore the moderating effect that collaborative networks might have on the relationship between various dimensions of organizational slack and firms performance.

Design/methodology/approach

The present study retrieves data from Thomson Reuters Data Stream, and it gathers observations from manufacturing companies located in Europe. The dataset is composed of observations spanning from the fiscal year 2019–2022. Consequently, through the use of a balanced panel data, the authors conduct multiple regression analysis.

Findings

The obtained empirical findings reveal that high discretion slack has a positive effect on companies performance whereas low discretion slack has a negative effect on their performance. Additionally, the obtained findings indicate that low levels of reliance on collaborative networks positively moderates the relationship between organizational slack and firms’ performance. On the other hand, high levels of reliance on collaborative networks negatively moderate the relationship between organizational slack and firms performance.

Originality/value

This manuscript carries several original contributions. It expands the literature stream concerning antifragility and collaborative networks. Additionally, it postulates an operational measure which can be used to indicate firms’ antifragility.

Citation

Giordino, D., Troise, C., Culasso, F. and Cutrì, L. (2024), "The operationalization of antifragility through organizational slack and the moderating effect of firms reliance on collaborative networks", European Journal of Innovation Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/EJIM-12-2023-1141