Author(s): Harvey T. Ong
Usage of Management Information Systems (MIS) so that businesses are aided in the achievement of goals. Companies typically prefer to remove slack as it has suffered from a negative reputation. However, recent studies by Bae and Rhee (2014) have shown that slack actually leads to innovation. The proponent conducted this study on the contribution of organizational slack towards the innovative performance. The researcher tested the presence of organizational slack in JDI Company by looking at their absorbed and unabsorbed slack. The author then assessed if slack indeed led to innovative performance as the studies of Tan & Peng (2003) suggested. Afterwards, the researcher measured the extent at which the following types of innovation were adopted by the firms: organizational, marketing, process, product, behavioral, risk. A correlational analysis between slack and innovation was performed in order to test the hypothesis. The result shows absorbed slack had a negative effect on JDI’s organizational innovation, while it has a positive effect on company’s behavioral innovation. Meanwhile, unabsorbed slack had a positive impact on company’s organizational innovation. The recommendation put forward by the researcher is that JDI should invest more in unabsorbed slack or in “excess resources” as this benefits their organizational innovation.