Technological diversification, absorbed slack and firm growth

Abstract

 Technological diversification and slack resources management are important means for enterprises to achieve endogenous growth. Based on the resource-based theory, this paper used the balanced panel data of 340 listed companies in China’s manufacturing industries from 2014 to 2019 as samples and conducted the empirical test. The main findings are as follows: (1) Technological diversification has an N-shaped influence on firm growth, related technological diversification has a positive effect on firm growth, and unrelated technological diversification has an inverted U-shaped influence on firm growth. (2) The absorbed slack has a negative moderating effect on the relationship between technological diversification and firm growth.