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Article published in Long Range Planning 53(3)

The study “Cash for contingencies: How the organizational task environment shapes the cash-performance relationship” has been published in Long Range Planning Volume 53 Issue 3 (Impact factor: 3.363). It was co-authored by Christopher Jung, J. Nils Foege, and Stephan Nüesch (all WWU Muenster) and examines the moderating effect of the external environment on the cash-performance realtionship.

Research Highlights:

  • Following the rationale of a contingent view on resource-performance relationships, this study provides a holistic perspective of the moderating role of the organizational task environment on the link between cash and performance.
  • We build on the concept of strategic fit between the firm and its external environment to argue that cash plays a facilitating role in aligning the firm and its environment.
  • Our results show that cash is of high strategic value in complex and dynamic environments, while it is less valuable under munificent conditions.
  • The public debate on the desirability of large cash holdings should consider the contexts when evaluating corporate cash holdings.

The Business Management Group congratulates the authors. The study is open access. Please follow this link.