PERFORMANCE, SLACK, AND RISK TAKING IN ORGANIZATIONAL DECISION MAKING.

1986/09/01 by J. V. Singh, Jagdip Singh · 1,437 citations
Business, Management and Accounting · Psychology · #Business #Computer science #Economics #Knowledge management #Operations management #Organizational behavior #Organizational effectiveness #Process management #Psychology #Risk Management in Financial Firms #Social psychology

paper · doi:10.2307/256224

published in Academy of Management Journal 29(3), 562-585 (Academy of Management)

openalex publication_date 1986/09/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/29

Abstract

This research paper investigates the relationship between organizational performance and risk taking in organizational decision making. A complex model is proposed in which the direct relationship, which is triggered by performance below acceptable levels, is negative, but the indirect relationships, which are mediated by organizational slack and decentralization, are positive. A test of the model for a cross-sectional sample of firms shows general support for the model. The findings have implications for theories that view change as arising from stable organizational processes.

Citations

• Threat Rigidity Effects in Organizational Behavior: A Multilevel Analysis

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