On the Business Value of Information Technology: A Theory of Slack Resources

Rahrovani, Yasser; Pinsonneault, Alain

doi:10.1007/978-1-4419-6108-2_9

Cited by 7 publications

(3 citation statements)

References 60 publications

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“…Among the control variables, firm size is a positive and significant determinant in both models (1) and (3). Debt-to-equity ratio is not significant in model ( 1), which departs from the existing results in the literature and theoretical frameworks such as the slack-resource theory (Rahrovani & Pinsonneault, 2012). Our results seem to suggest that a high level of debt would potentially make it tough for a listed firm to commit and engage in long-term activities like CSR and instead focus on short-term profit-generating activities to appease shareholders.…”

Section: Resultscontrasting

confidence: 97%

Foreign Ownership and Corporate Social Responsibility: The Case of an Emerging Market

Tokas

Yadav

2020

Global Business Review

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This article adds to the international business and corporate social responsibility (CSR) literature by investigating the impact of foreign ownership on the CSR expenditures of firms in a host country, within an emerging market context. Previous studies have examined the relationship between ownership structure and CSR engagement, primarily for the case of developed nations. This article explores the linkages between the CSR spending of foreign-owned firms in relation to their domestic counterparts for the Indian context. India provides a unique case because of the landmark legislation undertaken in 2014 that mandated CSR spending for firms based in India. This study examines the motivations that guide the CSR strategies of foreign firms in host nations and attempts to explain the usage of CSR spending as a tool to overcome Liability of Foreignness and achieve legitimacy using the neo-institutional theory. Within this unique setting, a sample of 3591 firm years in India for 2014–2018 is used to examine whether foreign-owned firms indulge in a higher CSR expenditure relative to domestic firms, using a random-effects model. Further, it is also examined whether business group-affiliated foreign firms spend differently on CSR than standalone foreign enterprises in the host nation. The results show that foreign ownership is associated with a higher CSR spending than domestic firms by an average of ₹1.35 million in the host country. Furthermore, among foreign firms, a business group affiliation leads to a higher CSR spending by an average of ₹1.55 million as compared to stand-alone foreign firms.

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Section: Resultscontrasting

confidence: 97%

Foreign Ownership and Corporate Social Responsibility: The Case of an Emerging Market

Tokas

Yadav

2020

Global Business Review

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“…Cash slack then can easily be adjusted to the needs of the firm and to the demands of a certain situation (Penrose, 1959). On the other hand, human slack, which is the investment in capabilities and skills in human resources above the level required for task completion (Rahrovani and Pinsonneault, 2012), is not easily redeployable. Human slack is context dependent and is more tied to the nature of organizational routines than cash slack (Mishina et al, 2004;Mousa and Chowdhury, 2014).…”

Section: Theory and Hypothesesmentioning

confidence: 99%

The impact of firm resources on innovation

Demirkan

2018

EJIM

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Purpose The purpose of this paper is to propose that the resources that a firm owns and has full control (firm-level resources) and resources that a firm access through direct connection with other firms (network-level resources) will impact firm innovation when effectively deployed by the firm. While previous research examined these factors separately, the author takes a holistic view and looks into their effects on innovation simultaneously. The author also introduces the moderating effects, i.e. the variables that can enhance firm innovation through their interaction with internal and external resources. Design/methodology/approach The author tested the role of financial resources and slack resources in the form of cash slack and human slack at the firm level, and network size, network tie strength, and network diversity at the network level on the firm innovation. Using generalized negative binomial model with Huber-White procedure, the author analyzed 306 firms from the biotechnology industry over a span of 17 years. Findings The analysis suggests that cash slack impact innovation negatively. However, this link is moderated by firm size such that for large firms cash slack affects innovation positively. Network-level resources all positively impact innovation and have more economic impact on firm innovation than firm-level resources. Furthermore, although human slack negatively affects innovation, its interaction with network size enhances innovation. Originality/value The research makes important contributions to both strategic management and innovation literatures especially when, the author considers the role of firm-level slack in driving firm innovation. Previous research reported conflicting findings about the availability of slack resources and firm performance. The results showed that the relationship between slack resources and firm innovation is negative and significant, both for available slack and human slack. This finding parallels with previous research which reported that constraints such as lack of slack resources can actually facilitate innovation. The author also contributes to the literature by introducing boundary conditions which can enhance firm innovation through their interaction with firm-level internal and network-level external resources. In this respect, to the author’s knowledge, this is among the first studies to combine the slack literature focusing on firm-level resources with the literature on network-level resources.

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“…In the context of an organisation's subjective norms, ensuring fairness in AI is another organisational consideration [43]. Other organisational considerations such as absorptive capacity [46], slack [38] and culture [15] play a role in adoption. Aspects such as industry pressure, governmental regulations and customer readiness are part of the key environmental considerations when trying to assist an organisation with the adoption of AI [24].…”

Section: Toe Considerationsmentioning

confidence: 99%

Towards a socio-specific artificial intelligence adoption framework

Smit¹,

Eybers²

EPiC Series in Computing

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Organisations need to be able to adopt AI successfully, but also responsibly. This requirement is not trivial, as AI can deliver real value to adopters. However, can also result in serious impacts on humans. AI’s technical capabilities make AI powerful, still the implementation of AI in organisations is not limited to the technical elements and requires a more holistic approach. An AI implementation within an organisation is a socio-technical system, with the interplay between social and technical components. When AI makes decisions that impact people, the socio considerations in AI adoption frame- works are paramount. Although technical adoption challenges are well researched and can overlap with aspects associated with traditional IT implementations, artificial intelli- gence adoption often faces additional social implication. This study focuses on these social challenges, which is a problem frequently experienced by many organisations. The study investigates how an organisation can increase adoption of AI as part of its quest to become more data-driven. This study was conducted at an automotive manufacturer’s analytics competence centre, located in South Africa. This paper describes the first iteration of a larger research effort that follows the design science research methodology. A socio-specific artificial intelligence adoption framework was created and can be used by organisations to help them succeed with their AI adoption initiatives in a responsible manner.

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On the Business Value of Information Technology: A Theory of Slack Resources

Cited by 7 publications

References 60 publications

Foreign Ownership and Corporate Social Responsibility: The Case of an Emerging Market

Foreign Ownership and Corporate Social Responsibility: The Case of an Emerging Market

The impact of firm resources on innovation

Towards a socio-specific artificial intelligence adoption framework

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