Long-term business survival (LBS) is subject to a variety of factors. According to previous studies in strategic management, major factors that affect LBS are diversification, innovation, first-mover advantages, and corporate governance structure. Thi...
Long-term business survival (LBS) is subject to a variety of factors. According to previous studies in strategic management, major factors that affect LBS are diversification, innovation, first-mover advantages, and corporate governance structure. This study, employing the resource-based view (RBV) and the institutional theory as the theoretical foundations for the explanation of LBS, suggests that slack resources and corporate giving as valid factors that affect LBS. We also put forward a comprehensive hypothesis that integrates the resource-based view and the institutional theory, which provide independent explanations for the impact of each of these two factors on LBS, and corroborates that the impacts of these two factors are actually mutually complementary. In order to verify the moderation effect of slack resources and corporate giving and the mediation effect of corporate giving in the relationship between slack resources and LBS and the moderating effect of corporate giving on slack resources, we conduct a survival analysis of 455 companies in the Korean securities market based on the KISVALUE data provided by NICE(National Information and Credit Evaluation). These companies underwent IPO in 2000, a year from which the Korean economy started to recover after the outbreak