Slack resources and quality performance: case of a mega health care organization

Purpose: Prior studies have examined the relationship between budgetary slack and short-termism of management within a profit-seeking business environment. The purpose of this paper is to examine the dynamics of slack resources in relation to quality performance of heath care services delivered by a publicly funded organization. Design/methodology/approach: A longitudinal regression analysis of resource utilization, productivity and the quality of health care services delivered is performed to reveal evidence about the underlying dynamics of heterogeneous slack resources. It attempts to study slack resources in the case of a “mega” health care service provider based in Hong Kong. Findings: The results suggest that the organization’s cost containment culture, with a strategic focus on productivity measures, has augmented cost effectiveness; however, not all slack resources would enhance quality performance. Originality/value: This study of a mega health care service provider complements the prior studies of slack resources and points out the challenges of proactively managing any slack resources toward quality performance beyond productivity.