Organizational slack and risk-taking behaviour: tests of product pricing strategy

Abstract

Organizational change inevitably involves uncertainty and some degree of risk taking. What organizational cocnditions are associated with greater risk taking? This article examines the relationship between organizational slack and risk-taking behaviour. To the degree that slack is associated with risk-taking, the presence or absence of slack is relevant to organizational change. To the degree that organizational change leads to the creation or reduction in slack, future risk-taking behaviour may be altered.