The Impact of the Multi‐divisional Structure on Organizational Slack: The Contingency of Diversification Strategy

This study examines the relationship between multi-divisional (M-form) structure and organizational slack. Findings based on longitudinal analysis data from 62 firms indicate that M-form implementation increases the firm's capacity to manage absorbed slack in the cases of vertically integrated and related diversified firms, and unabsorbed slack in the case of unrelated diversified firms.