Organizational Slack and Knowledge Creation in Product Development Projects: The Role of Project Deliverables

Our concern is with how changes in organizational slack affect knowledge creation in product development projects. We operationalize a change in organizational slack as changed possibilities to depart from project deliverables in NPD projects. Through case research in high velocity industries we identify the effect a change in organizational slack has on knowledge creation processes inside product development projects. In particular we highlight the effects on tacit and explicit knowledge. More specifically we find that reduced slack creates a focus on explicit knowledge rather than tacit knowledge, which may reduce the ability to create knowledge creation and ultimately to innovate.