In their well-known book A Behavioral Theory of the Firm, R. Cyert and J. March (1963) [1] proposed the notion of “organizational slack”, a notion central to their understanding of the firm as a coalition of competing and yet interdependent actors. This refers to (hidden) reserves (or redundancies) of resources which enable actors to escape the constraints that management imposes on their behavior in order to align and, possibly, optimize their performance with the overall objectives of the firm. […]
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