Research on the Relationship Between Absorbed Slack and Technology Innovation

This paper divides the absorbed slack into dispersed slack and combined slack from the point of view of control right and analyzes the affection these two kinds of slacks have on the innovation. This research build a model of structural equation reflecting the relationship among the slack, absorbed capacity and innovation and proved this model with the data get from 607 enterprises by questionnaire. The result indicates that the dispersed slack and combined slack have positive relationship respectively with product innovation and process innovation and different slacks have some matching relationship with different absorptive capacities, which can result in different innovative output. This shows that the slack in Chinese enterprises can also promote the innovative output just like the western enterprises; so reducing the staff according to simple principles perhaps cannot be the most efficient way to improve the effectiveness in Chinese enterprises.