Research On The Relationship Between Organizational Slack And Political Association On Strategic Change

Due to the rapid development of world's economy and the integration of modern science and technology,great changes have taken place.The enterprises are facing changes of internal and external environment,and the key to maintain and create competitive advantages is strategic change.Strategic change is a frontier issue in the field of international strategic management.Over the past 30 years,scholars have carried out a great deal of researches from different angles.The strategic change of enterprises needs the cooperation of internal and external resources.The slack resources of enterprises provide them with the internal resources,and the political connections can provide external resources for the implementation of strategic change.Therefore,the study of the influence of slack resources and political connections on strategic change can provide an explanation for the implementation conditions and processes of strategic change,which has strong research significance.This study selects the institutional environment and ownership type of companys as the moderator variables,and tries to explore the mechanism of introducing situational adjustment of slack resources and political connections to corporate strategic change.In this study,we used the regression analysis method to test the hypothesis of the listed companies of manufacturing industry from 2009 to 2016.The results show that:(1)there is a positive impact of the absorbed slack on strategic change;(2)there is a U type relationship between the unabsorbed slack and strategic change which means the degree of strategic change will decrease first and then increase with the increase of unabsorbed slack(3)the political connection has a positive impact on strategic change;(4)the institutional environment weakens the positive effect of absorbed slack on strategic change;(5)the institutional environment leads the U type relationship between unabsorbed slack and strategic change become more smooth;(6)institutional environment weakens the relationship between political connection and strategic change;(7)compared to the state-owned enterprises,non-state-owned enterprises strengthen the role of political association on strategic change.This study is beneficial to the further improvement of the current theory of base of resource and the theory of strategic change.In practice,it has important significance which can guide the firm takes effective use of resources to adapt to the environment,to promote the realization of strategic change.