Slack resources, exploratory and exploitative innovation and the performance of small technology-based ?rms at incubators

Abstract Thispaperaimstocontribute(1)totheunderstandingabouthowsmalltechnologybased ?rms in spite of being constrained by limited resources, can still perform exploratory and exploitative innovation and (2) to extend knowledge about the role of slack resources in thecontextofsmalltechnology-based?rmsinfacilitatingthoseinnovationactivities.Herein, wefocusontwotypesofslackresources:internalslack,resourcesthatareavailablewithinthe ?rms and external slack, additional resources that are gathered through the facilitation of external sources such as business incubators. Using a sample of 141 small technology-based ?rms located at incubators, this study combined two streams of research on incubator studies and innovation to construct some hypotheses examining the role of slack resources and innovation activities in enhancing the performance of small technology-based ?rms operating in incubator setting. Our ?ndings demonstrate that neither slack resources nor innovation activities alone explain ?rm performance. Instead, small technology-based ?rms ?t their innovation activities to their slack resources. While the relationship between internal slackandperformanceismediatedbyexploitativeinnovation,exploratoryinnovationplaysa role as a mediator for the relationship between external slack and performance.Keywords Exploration Exploitation Innovation Internal slack External slack Mediation Performance Incubator