Innovation scholars are interested

Innovation scholars are interested in how slack affects product innovation in high-tech Chinese firms. We highlight that slack–innovation linkages may differ depending on whether slack is absorbed or unabsorbed, and argue that entrepreneurial orientation (EO) moderates the slack–innovation connection. Our empirical study of 308 high-tech Chinese firms suggests that unabsorbed slack is more strongly positively related with product innovation than is absorbed slack in high-tech settings. Meanwhile, firms with high levels of EO enjoy better effects between unabsorbed slack and innovation, but worse effects between absorbed slack and innovation. We also provide theoretical and practical implications and directions for future research.