Relationship between Unabsorbed Slack and Firm Performance: Based on the Moderating Role of TMT Social Capital

This paper focuses on the problems of the necessity for firms to keep slack and how can enterprises use these resources to create the biggest organizational performance. Based on the data of 159 high-tech enterprises in Shanghai and Shenzhen stock markets, a model with unabsorbed slack, competitive behavior diversity and corporate performance is constructed, and manager's social capital was also included. The empirical results show that the unabsorbed slack improves firm performance by increasing the diversity of competitive behavior; the academic capital plays a significant positive role in the relationship between unabsorbed slack and firm performance; governmental capital weakens the positive relationship between the unabsorbed slack and the firm performance.