The founder as the microfoundation of slack resource and firms' R&D investment

This paper studies the relationship between slack and research and development (R&D) investment by addressing the role of the founder as the 'microfoundation' among Chinese newly listed firms. We propose a contingent approach to understanding the slack-R&D investment relationship by examining the influence of the founder's human capital and social ties, which is distinguished into political and managerial ties. Our results show that the founder's human capital, measured by its educational level, strengthens the relationship between absorbed and unabsorbed slack resources and R&D investment. We also find that the founder's managerial ties strengthen the relationship between resource slack and R&D intensity, whereas political ties weaken that link. Our results demonstrate the founder's crucial role in underpinning resource utilization in newly listed firms and emphasise the importance of social ties in driving firms' R&D activities in emerging economies.