Which statement about Slack is true in relation to being a first mover?

Which statement about Slack is true in relation to being a first mover?

• A. Slack has no impact on a firm's ability to act as a first mover.
• B. Slack inhibits a firm’s ability to be a first mover.
• C. Slack slightly reduces risk but not ability to move first.
• D. Slack provides the resources that can enable a firm to be a first mover.

Answer: (D)

Having organizational slack—the extra resources beyond what’s needed for daily operations—is what lets a firm act quickly on new opportunities. Being a first mover often requires committing funds, time, and effort before rivals do, and slack provides the buffer to do that without imperiling ongoing activities. With this cushion, a company can fund rapid R&D, iterate on a product, run quick pilots, and lock in capabilities or partnerships that support an early market launch. In short, slack supplies the resources that make pursuing a first-mover move feasible, even in the face of uncertainty and fast-changing conditions. Other options miss the link between extra resources and the ability to move quickly and invest upfront; they either deny any impact, claim slack hinders action, or only imply a marginal effect.

Having organizational slack—the extra resources beyond what’s needed for daily operations—is what lets a firm act quickly on new opportunities. Being a first mover often requires committing funds, time, and effort before rivals do, and slack provides the buffer to do that without imperiling ongoing activities. With this cushion, a company can fund rapid R&D, iterate on a product, run quick pilots, and lock in capabilities or partnerships that support an early market launch. In short, slack supplies the resources that make pursuing a first-mover move feasible, even in the face of uncertainty and fast-changing conditions.

Other options miss the link between extra resources and the ability to move quickly and invest upfront; they either deny any impact, claim slack hinders action, or only imply a marginal effect.