Abstract
This study shifts the focus from the traditional examination of organizational slack (OS) outcomes to understanding the mechanisms behind OS accumulation. Drawing on insights from organization theory and cultural studies, we propose that national culture significantly shapes individuals' behaviors and decision-making processes, thereby shaping the accumulation of OS. Empirically, we leverage a dataset comprising 1,964 manufacturing firms from 37 countries over 16 years to explore the relationship between national culture dimensions and both financial and non-financial slack. Our findings challenge conventional wisdom by revealing the nuanced ways in which national culture impacts OS accumulation. Cultural differences can explain why organizations maintain or reduce OS levels, even in the absence of strict monitoring or during periods of below-average financial performance. Furthermore, we highlight the differential effects of national culture on financial and non-financial slack, suggesting a need for a more comprehensive understanding of OS antecedents beyond traditional financial considerations.