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JCR Category: Business in ESCI edition

Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2024) 1.3 Q3
Journal Citation IndicatorTM (2024) 0.26 Q4
Received: 2024-10-15  |  Accepted: 2025-01-13  |  Published: 2025-03-30

Title

Underused resources and companies' growth: the influence of digital transformation and decision-making ability


Abstract

In the digital economy era, diverse resources remain a critical asset for businesses aiming to boost their competitiveness and secure sustainable growth. Organisational slack, as an underused resource, has increasingly captured researchers' interest, with varying impacts attributed to different types of slack. Using data from Chinese A-share listed firms from 2011 to 2019, this study discusses the influence of slack resource on companies' growth and the mechanisms of their effects in the digital setting. We conducted an empowering regression analysis with two-factor fixed effects on the dataset and found that absorbed slack facilitates companies' growth, whereas unabsorbed slack may hinder it. Simultaneously, managers with strong decision-making ability and deep digital transformation are also conducive to absorbed slack for organisational growth. A real case from a traditional coal mine company was conducted to confirm our findings and make additional discoveries. We contribute to the academic discourse by offering practical guidance for businesses on the strategic use of slack resources and integrating digital transformation initiatives.


Keywords

digital transformation, underused resources, organisational slack, organisational growth, management decision-making ability


JEL classifications

M10 , M21 , J24


URI

http://jssidoi.org/jesi/article/1276


DOI


Pages

44-60


Funding


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Tang, Zhihui
Huadian Coal Industry Group Engineering Technology Co., Ltd., Yulin, China
Articles by this author in: CrossRef |  Google Scholar

Zhou, Junzhen
Zhongnan University of Economics and Law, Wuhan, China https://www.zuel.edu.cn
Articles by this author in: CrossRef |  Google Scholar

Journal title

Entrepreneurship and Sustainability Issues

Volume

12


Number

3


Issue date

March 2025


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 417  |  PDF downloads: 199

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