The Effect of a Company’s Slack Resource on R&D Performance: Through the Company’s Technology and Commercialization Capabilities

In recent times, companies are facing various external risk factors such as pandemic risks, international political uncertainties, and changes in the global supply chain all at once. To prepare for these adversity, companies are maintaining slack resources as a buffer, enabling them to survive in rapidly changing external environments. This study aims to examine the impact of holding levels of surplus resources, excluding those actually utilized for normal production, on internal capabilities and performance for research and development (R&D). The analysis focuses on small and medium-sized enterprises (SMEs) in the Jeju, which have experienced continuous declines in economic growth since events like the THAAD issue in 2017 and the COVID-19 pandemic. To achieve this, the study categorizes a company's slack resources into Available Slack, Recoverable Slack, and Potential Slack. It then investigates how these slack resources, aligned with the company's perceived risk level, influence R&D performance as mediated by internal capabilities deemed significant by the company. Through this research, the study proposes a direction for companies to appropriately maintain slack resources based on their perceived risk levels. Furthermore, it suggests appropriate support policies and specific directions for support agencies and policy makers to assist companies in achieving their internal capabilities and performance goals for research and development.