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Creativity, Organizational Slack and Costs Reduction

Résumé :

Programs to decrease cost and to increase operational efficiency may reduce a company’s
ability to innovate, by reducing organisational slack. Previous research on the relationship
between organisational slack and innovation has been at level of the firm and has neglected
the processes underlying the relationship, which takes place at the level of product development projects. In this paper, we identify organisational slack and its influences at the level
of the product development project. Through exploratory case research in high-velocity
industries, two influences on organisational slack are identified: customer interaction and
top management control. We also identify two categories of organisational slack at the
product development project level: project deliverables and human competences. The two
influencing variables and the two categories of organisational slack all have an effect on the
knowledge creation taking place inside the projects and therefore ultimately innovation.
Keywords: Organisational slack; knowledge creation; innovation; product development;
projects; case study research.

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