Showing papers on "Resource dependence theory published in 2009"
TL;DR: In this article, the authors assess the conceptual development, empirical research, and application of resource dependence theory (RDT) and structure their review around the five options that Pfeffer and Salancik propose firms can enact to minimize environmental dependences: (a) mergers/vertical integration, (b) joint ventures and other interorganizational relationships, (c) boards of directors, (d) political action, and (e) executive succession.
2,010 citations
TL;DR: In this paper, a review of this literature reveals that conceptual articles outnumber empirical studies, and empirical efforts often lack formal hypotheses and rigorous methods, and that social entrepreneurship research remains in an embryonic state.
Abstract: Social entrepreneurship has been a topic of academic inquiry for nearly 20 years, yet relatively little scholarly output has appeared in mainstream management and entrepreneurship journals Our review of this literature reveals that conceptual articles outnumber empirical studies, and empirical efforts often lack formal hypotheses and rigorous methods These findings suggest that social entrepreneurship research remains in an embryonic state Future research would benefit from the incorporation of multivariate methods to complement the case study techniques that have dominated previous efforts Our review also suggests that social entrepreneurship is informed by common areas of interest to management scholars like entrepreneurship, public/nonprofit management, and social issues, all of which represent fruitful venues for future research efforts Therefore, we recommend that scholars embrace key themes in strategic entrepreneurship and frame their research using established theories, such as contingency theory, creation theory, discovery theory, innovation diffusion theory, resource dependence theory, and other theoretical bases relevant to strategic entrepreneurship research Copyright © 2009 Strategic Management Society
1,123 citations
TL;DR: In this article, the authors examine how entrepreneurs shape organizational boundaries and construct markets through an inductive, longitudinal study of five ventures and propose that power is the underlying boundary logic and indicate the "soft-power" strategies by which entrepreneurs compete in highly ambiguous markets.
Abstract: We examine how entrepreneurs shape organizational boundaries and construct markets through an inductive, longitudinal study of five ventures. Our central contribution is a framework of how successful entrepreneurs attempt to dominate nascent markets by co-constructing organizational boundaries and market niches using three processes: claiming, demarcating, and controlling a market. We propose that power is the underlying boundary logic and indicate the “soft-power” strategies by which entrepreneurs compete in highly ambiguous markets. Overall, we develop a holistic view of organizational boundaries and offer insights into institutional entrepreneurship and resource dependence theories. Our most important contribution is reinvigorating the study of interorganizational power.
953 citations
TL;DR: In this paper, the authors investigated the relationship between internal governance structures and financial performance of Indian companies, including board composition, board size, and aspects of board leadership including duality and board busyness using two theories of corporate governance: agency theory and resource dependency theory.
Abstract: Manuscript Type: Empirical
Research Question/Issue: This paper investigates the relationship between internal governance structures and financial performance of Indian companies. The effectiveness of boards of directors, including board composition, board size, and aspects of board leadership including duality and board busyness are addressed in the Indian context using two theories of corporate governance: agency theory and resource dependency theory.
Research Findings/Insights: The study used a sample of top Indian companies taking into account the endogeneity of the relationships among corporate governance, corporate performance, and corporate capital structure. The study provides some support for aspects of agency theory as a greater proportion of outside directors on boards were associated with improved firm performance. The notion of separating leadership roles in a manner consistent with agency theory was not supported. For instance, the notion that powerful CEOs (duality role, CEO being the promoter, and CEO being the only board manager) have a detrimental effect on performance was not supported. There was some support for resource dependency theory. The findings suggest that larger board size has a positive impact on performance thus supporting the view that greater exposure to the external environment improves access to various resources and thus positively impacts on performance. The study however failed to support the resource dependency theory in terms of the association between frequency of board meetings and performance. Similarly the results showed that outside directors with multiple appointments appeared to have a negative effect on performance, suggesting that “busyness” did not add value in terms of networks and enhancement of resource accessibility.
Theoretical/Academic Implications: The two theories of corporate governance, namely agency and resource dependence theory, were each only partially supported, by the findings of this study. The findings add further to the view that no single theory explains the nexus between corporate governance and performance.
Practitioner/Policy Implications: This study demonstrates that corporate governance measures utilized in developed economies related to boards of directors have some synergies and relevance to emerging economies, such as India. However, the nature of business structures in India, for example the large number of family businesses, may limit the generalizability of the findings and signals the need for further investigation of these businesses. The evidence related to multiple appointments of directors suggests that there may be support for restricting the number of directorships held by any one individual in emerging economies, given that the “busyness” of directors was negatively associated with firm performance.
798 citations
TL;DR: In this article, the authors consider firms as learning actors embedded in network relations and influenced by institutional development, and compare and contrast firms' acquisition activities across the United States and China.
Abstract: What drives mergers and acquisitions (M&As) in different institutional environments? This article builds on the resource dependence perspective and argues that networks, learning, and institutions represent three building blocks that can enhance our understanding of the drivers behind M&As. Specifically, we consider firms as learning actors embedded in network relations and influenced by institutional development, and compare and contrast firms' acquisition activities across the United States and China. Our findings show that there are indeed important learning and network factors that lead to M&As. More interestingly, the impact of such learning and network factors varies sharply across countries with different market-based institutions. Copyright © 2009 John Wiley & Sons, Ltd.
311 citations
01 Oct 2009
TL;DR: In this paper, the authors examine the claim that natural resources invite civil conflict, and challenge the main stylized facts in this literature, and conclude that there is no reason to regard resources as a general curse to peace and development.
Abstract: In this paper we examine the claim that natural resources invite civil conflict, and challenge the main stylized facts in this literature. We find that the conventional measure of resource dependence is endogenous with respect to conflict, and that instrumenting for dependence implies that it is no longer significant in conflict regressions. Instead, it appears that conflict increases dependence on resource extraction (as a default sector). Moreover, resource abundance is associated with a reduced probability of the onset of war. These results are robust to a range of specifications and, considering the conflict channel, we conclude there is no reason to regard resources as a general curse to peace and development
306 citations
TL;DR: In this article, the authors address how institutional pressures help shape HRM and highlight differences in three types of institutional fit: innovative, conformist and deviant, using document analysis and 43 interviews in three organizations in The Netherlands.
Abstract: Purpose – Research in strategic human resource management (HRM) has focused mainly on the effects of HRM practices or systems on organizational effectiveness. However, institutional theory argues that besides being financially successful, organizations also need legitimacy to survive. Owing to the tension between competitive and institutional pressures, organizations balance between the degree of conformity and the degree of differentiation from competitors regarding HRM. The purpose of this paper is to address how institutional pressures help shape HRM.Design/methodology/approach – Using the concepts of leeway, human agency and strategic choice, differences in three types of institutional fit are highlighted: innovative, conformist and deviant. A comparative case study approach is used in order to illustrate the framework, using document analysis and 43 interviews in three organizations in The Netherlands.Findings – This paper shows how balancing competitive and institutional pressures in organizations a...
143 citations
TL;DR: In this article, a broad foundation for future research in the area of strategic sourcing is provided by drawing from various well-established organizational theories, such as institutional theory, resource dependence theory, network theory, systems theory and critical theory.
Abstract: Purpose – The goal of this paper is to provide a broad foundation for future research in the area of strategic sourcing.Design/methodology/approach – The foundation is derived by drawing from various well‐established organizational theories. Specifically, strategic sourcing was viewed from the perspective of institutional theory, resource dependence theory, network theory, systems theory, resource/knowledge‐based views of the firm, transaction cost economics, agency theory, strategic choice theory, sociocognitive theory, and critical theory.Findings – By viewing strategic sourcing through the lens of ten organizational theories, this research provides multiple insights into many interrelated strategic sourcing questions, such as when to make, buy or ally, how many and which suppliers, and how to manage sourcing relationships. The paper offers a rich and diverse foundation to foster future theory‐building activities in sourcing and supply management research.Originality/value – While some of these theory b...
119 citations
01 Jan 2009
TL;DR: In this article, the authors argue that French NGDOs have misread their resource opportunities and miss out on valuable funding opportunities from their central state. But they also argue that they should be more proactive and flexible in their pursuit of central government resources.
Abstract: French NGDOs have, over the global era, clearly moved some way into line with the wider trends outlined in our introductory chapter. But they have also been careful to ensure that their relationship with the French authorities should not become ‘too close for comfort’ (Hulme and Edwards, 1997), that their modus operandi should not be overly bureaucratic and that they should not find themselves labelled as mere agents or vectors of the government. By imposing limits on their collaboration with the state, French NGDOs might appear to be undermining our working assumption, which contended that NGOs that adhere to RD theory, should normally be proactive and flexible in their pursuit of central government resources. Yet, have French NGDO been acting out of line with the logic of RD and missing out on valuable funding opportunities from their central state? Or, have they been correctly interpreting their resource context, but operating in a climate which simply does not promote closer NGDO-government cooperation? These questions will be central to this chapter, which will begin by examining the evidence that French development NGOs have misread their resource opportunities, before constructing our main argument, namely that they have been ‘enacting’ (i.e., correctly interpreting) the resources available from the state and other actors in their environment.1
104 citations
TL;DR: In this article, the authors propose a strategic management explanation of nonprofit advocacy, using survey data from nonprofit organizations in Michigan, and test an empirical model in which factors of organizational learning, structure, resource dependence, and resource competitiveness contribute to nonprofits' advocacy activities.
Abstract: Nonprofit organizations serve as a voice for their constituent publics in the political arena, even though advocacy practices remain outside their core mission. Some nonprofits embrace their advocacy roles and engage in these activities frequently, while others choose to avoid these activities altogether. What organizational capacities enable nonprofits to pursue an advocacy agenda? Drawing on theoretical perspectives in organizational behavior, public management, and political science, we propose a strategic management explanation of nonprofit advocacy. Using survey data from nonprofit organizations in Michigan, we test an empirical model in which factors of organizational learning, structure, resource dependence, and resource competitiveness contribute to nonprofits' advocacy activities. Findings suggest that experience with collaborative networking, productive exchange relations with funding principals, representation of lobbying skills at the managerial level, dependence on government resources, and c...
94 citations
TL;DR: In this paper, the authors investigated the association between the composition of the board of directors and corporate diversification, and found that there is no link between corporate decisions on product and/or geographic diversification and two aspects of board composition, board independence and institutional representation.
Abstract: Manuscript Type: Empirical
Research Question/Issue: This study investigates the association between the composition of the board of directors and corporate diversification, to explore the role of the board in corporate strategic choice.
Research Findings/Results: Based on a sample of 101 Australian publicly listed firms in 2005, this study finds that there is no link between corporate decisions on product and/or geographic diversification and two aspects of board composition – board independence and institutional representation. However, there is a positive link between total diversification and a third aspect of board composition – the proportion of directors who have ties to boards of corporations in other industries.
Theoretical Implications: The results provide support for the managerial hegemony and the resource dependency theories. Corporate strategic decisions regarding diversification are more likely to be made by management than boards of directors, and to be encouraged by interlocking directors with extra-industry ties.
Practical Implications: Contrary to the requirement or recommendation in many jurisdictions that boards be more independent, these results indicate that shareholders' interests, represented by lower levels of diversification, are not promoted under such circumstances. Interlocking directors appear to effectively link the corporation to the external business environment and to encourage diversification. Existing recommendations and regulations to align management with shareholders' interests through independent boards should be revised. Board composition should also consider directors' knowledge, relevant expertise, availability, and length of tenure.
TL;DR: Based on transaction cost analysis and resource dependence theory, the authors identify four key elements of quasi-integration: legal contract, joint problem solving, joint planning, and collaborative communication.
TL;DR: In this article, the authors used data from a sample of nonprofit organizations in Michigan to attend to the needs of their various stakeholders and found that non-profit social service organizations face unique challenges.
Abstract: Nonprofit social service organizations face unique challenges in attending to the needs of their various stakeholders This article uses data from a sample of nonprofit organizations in Michigan to
TL;DR: In this paper, a model of the influence of key new product development offshore outsourcing factors on two important buyers' governance decisions (i.e., supply concentration and degree of supplier involvement) is proposed.
TL;DR: In this article, the authors investigated whether there are any positive relationships between CFP and CSR under the slack resource theory and investigate whether thereare any positive relationship between CSR and CFP under good management theory by integrating concept of strategic management into the definition of CSR as sustainable corporate performance including economy, social, and environment.
Abstract: The research objectives of the study are to investigate whether there are any positive relationshipsbetween CFP and CSR under the slack resource theory and to investigate whether thereare any positive relationships between CSR and CFP under good management theory by integratingconcept of strategic management into the definition of CSR as sustainable corporateperformance including economy, social, and environment. To answer the research questions ofthis study, questionnaire-based survey research design was used. The questionnaires that includeitems representing variables in this study (corporate social performance, corporate financialperformance, business environment, strategy, organization structure, and control system)were sent to the respondents who are managers of state-owned companies (BUMN) and private-owned companies using post and e-mail services. There is a positive relationship between CFPand CSP under the slack resource theory and under good management theory.  Copyright © www.iiste.org
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TL;DR: In this paper, the authors examined the relationship of corporate social performance (CSP) to corporate financial performance to determine if CSP is related to firm performance, and examined whether firm size or industry affects the relationships between CSR and CSP.
Abstract: This study examines the relationship of corporate social performance (CSP) to corporate financial performance (CFP) to determine if CSP is related to firm performance. Additionally, it examines whether firm size or industry affects the relationships between CSR and CSP. This study advances the literature as it examines this relationship for companies in a developing country, Indonesia, along with examining the impact of moderating variables on this relationship. Two models were developed: the first model was derived using slack resource theory and the second model was developed using the good management theory. Through the examination of 383 firms, the result of the study failed to find a significant relationship between CSP and CFP in either model. Further analysis, using the slack resource theory, did find that company size had a significant positive moderating effect on the relationship between CSP and CFP.
TL;DR: Li et al. as discussed by the authors investigated the antecedents of localization success based on resource dependency theory and found that a significant relationship between localization success and top management ratings of company performance.
Abstract: Localization in the corporate setting is the extent to which expatriate managers are replaced by local employees originally held by expatriate managers. We sampled 229 multinational enterprises (MNEs) in the People's Republic of China and investigated the antecedents of localization success based on resource dependency theory. We developed a 40-item scale to measure human resource (HR) practices determined to contribute to successful localization. We also identified parent company support and top management's commitment as two sets of factors that predicted localization success. It was the first study that found a significant relationship between localization success and top management ratings of company performance.
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TL;DR: In this article, the authors propose a strategic management explanation of nonprofit advocacy, using survey data from nonprofit organizations in Michigan, and test an empirical model in which factors of organizational learning, structure, resource dependence, and resource competitiveness contribute to nonprofits' advocacy activities.
Abstract: Nonprofit organizations serve as a voice for their constituent publics in the political arena, even though advocacy practices remain outside their core mission. Some nonprofits embrace their advocacy roles and engage in these activities frequently, while others choose to avoid these activities altogether. What organizational capacities enable nonprofits to pursue an advocacy agenda? Drawing on theoretical perspectives in organizational behavior, public management, and political science, we propose a strategic management explanation of nonprofit advocacy. Using survey data from nonprofit organizations in Michigan, we test an empirical model in which factors of organizational learning, structure, resource dependence, and resource competitiveness contribute to nonprofits' advocacy activities. Findings suggest that experience with collaborative networking, productive exchange relations with funding principals, representation of lobbying skills at the managerial level, dependence on government resources, and competition in the resource environment all shape nonprofits' advocacy practices in important ways. These findings have important implications for both theory and practice of nonprofit management.
TL;DR: The authors investigated the role of nonprofits in e-advocacy and e-democracy and found that rights groups, environmental organizations, and policy experts are consistently likely to mention advocacy and promote civic engage ment on their Web sites.
Abstract: This study extends prior work on the social role of nonprofits by investigat ing Web site use for e-advocacy and e-democracy (civic engagement). Building from interviews with 200 nonprofit executive directors, results reveal that rights groups, environmental organizations, and policy entrepre neurs are consistently likely to mention advocacy and promote civic engage ment on their Web sites. By contrast, funding structure and resource dependence generally fail to explain nonprofit use of Web sites for social purposes, suggesting that external controls may not constrain nonprofits. In light of these results, the study concludes with an agenda for future research on the relationship between civic engagement and advocacy.
TL;DR: In this paper, the authors propose a research agenda that can assist in developing a dynamic and comprehensive theory of boards of directors, based upon the concept of temporality, with time being organized around the life-cycle metaphor, and integrates research on agency theory, decision-making theory and resource dependence theory.
Abstract: We propose a research agenda that can assist in developing a dynamic and comprehensive theory of boards of directors. It is based upon the concept of temporality, with time being organised around the life-cycle metaphor, and integrates research on agency theory, decision-making theory and resource dependence theory. We identify three key roles of boards of directors: (1) monitoring and controlling top management; (2) involvement in strategic decision-making; and (3) providing access to resources and networks. Our analysis suggests that boards perform all three roles, but that these roles change over time. We propose clear researchable questions for each stage of the organisational life cycle as well as the transition between the stages.
TL;DR: The authors examines the organization-public communication of community college Web sites in light of two important bodies of public relations research: dialogic communication and resource dependency theory, and conducts a study of nineteen community college web sites; and discusses the findings and directions for future research in public relations.
Abstract: This study examines the organization–public communication of community college Web sites in light of two important bodies of public relations research: dialogic communication and resource dependency theory. Dialogue is important to understand because highly resource-dependant organizations like community colleges need to be able to effectively communicate with a variety of influential publics. This study seeks to better understand how organization and stakeholder information needs are met by effective Web design in highly resource dependant environments. This study reviews the current literature on community colleges, resource dependency theory, and dialogue; conducts a study of nineteen community college Web sites; and discusses the findings and directions for future research in public relations.
TL;DR: In this paper, the authors argue that entrepreneurs with firm-specific human capital represent both a potential source of competitive advantage and a threat to appropriate the rents that are ultimately generated by a new venture.
Abstract: Entrepreneurs with firm–specific human capital represent both a potential source of competitive advantage and a threat to appropriate the rents that are ultimately generated by a new venture. This ...
TL;DR: In this article, the impact of board of directors on the performance of not-for-profit (NFP) organizations is examined, using the theoretical explanations of the resource dependency theory, the agency theory, and the group/decision processes theory.
Abstract: Purpose – This paper aims to examine the impact of board of directors on the performance of not‐for‐profit (NFP) organizations. The study also aims to utilize the six dimensions of effective board performance as suggested by Chait et al., using the theoretical explanations of the resource dependency theory, the agency theory, and the group/decision processes theory. By explaining how these board activities influence organizational performance, we can begin to understand the importance of board influence in determining organizational effectiveness as measured by organizational performance.Design/methodology/approach – For the purpose of this study, organizational performance attributes are used in line with the strategy used by Nobbie and Brudney. The measurement used includes the perception of board members' view of the overall success in meeting organizational goals, increase or decrease in the number of programs offered by the organization, improvement in the quality of service offered by the organizati...
TL;DR: In this paper, the authors explore possible explanations for the unintended consequences of public sector reform, and discuss possible practical solutions for policy makers and service commissioners, using two well-established managerial theories: stakeholder theory and resource dependency theory.
Abstract: Purpose – The process of public sector reform in the United Kingdom continues to provoke debate. Even among advocates of the reform process there is a concern that improvements in public service provision have not been as marked as originally intended, and that the process has produced a variety of unintended consequences. The purpose of this paper is to explore possible explanations for these unintended consequences, and discuss possible practical solutions for policy makers and service commissioners.Design/methodology/approach – In this conceptual paper focus is in particular upon attempting to explain managerial behaviour from insights offered by two well‐established managerial theories – stakeholder theory and resource dependency theory. Insights from these theories are used to explain the possible causes of the unintended consequences of the reform process. The discussion is illustrated and set in context by reference to a continuum of service delivery modes from monopoly provision through to full co...
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TL;DR: In this paper, the degree of openness/closeness in the governance of family businesses was found to influence their internationalization. And they found that external ownership increases the scale and the scope of the firm's international operations.
Abstract: Drawing on resource dependence theory, we expect the degree of openness/closeness in the governance of family businesses to influence their internationalization. We find that external ownership increases the scale and the scope of the firm's international operations. An external CEO and larger TMTs enhance the scale of a family firm's international operations, but not the scope of international operations. Conversely, external board members enhance the scope of international operations, but not the scale. These results encourage further looks into the resources that non-family actors bring to the family business and their effects on different dimensions of internationalization.
TL;DR: This paper examined the influence of resource dependence and institutional processes on post-Civil Rights Act changes in private sector workplace segregation and found that the importance of organizational fields and labor queues for persistence and change in workplace inequality.
Abstract: This article examines the influ ence of resource dependence and institutional processes on post-Civil Rights Act changes in private sector workplace segregation. We use data collected by the U.S. Equal Employment Opportunity Commission from 1966 through 2000 to examine organizations embedded within their firm, industry, local labor market and federal regulatory environments. Sex segregation declines precipitously from 1966 through 2000, but we see little evidence that organizations in the same industrial environment have established a stable pattern of segregation and integration. In other words, sex segregation has not been institutionalized. Race segregation, on the other hand, shows strong and increasing evidence of institutionalization, but weak declines after 1980. Firm visibility, field concentration and federal contractor density, but not direct federal affirmative action reporting, prove to be particularly important for understanding changes in segregation levels and institutionalization within industries. Results point to the importance of organizational fields and labor queues for motivating both persistence and change in workplace inequality. Most explanations of inequality focus on the attributes of either individuals or employment positions. Scholars have occasionally considered the site of inequality: the workplace. Still fewer situate workplace inequality within the context of organizational environments. This relative absence seems odd because jobs are located within organizations and organizational power dynamics determine their very existence. The resources available to reward individuals and construct employment positions also depend
TL;DR: In this paper, a constrained choice model of strategic decision-making for cupid alliances is developed, where three key alliance decisions are substantially curtailed by the cupid's requirements, producing a severely constrained set of strategic decisions.
Abstract: This article develops a constrained choice model of strategic decision-making for `cupid' alliances. Unlike voluntary alliances, cupid alliances are forged between `target' organizations at the behest of a third `cupid' organization that stands to benefit from creation of the alliance. Three key alliance decisions — whether to partner, with whom, and governance — are substantially curtailed by the cupid's requirements, producing a severely constrained set of strategic decisions. The conceptual model is supplemented with a case study which relies on qualitative interviews, observations and communication network data collected from principals negotiating a cupid alliance. A finding which may be unique to cupid alliances was the decline in trust over the course of the negotiation between those representatives whose organizations had no past alliance relationships. This finding is especially interesting given the fact that despite the decreased propensity for representatives to trust, an agreement was still r...
TL;DR: In this paper, the authors examined to what extent various features of nonprofit organizations yield different levels of media publicity through local newspapers and the Internet in a Midwestern community, and found that financially resource-rich, locally embedded organizations and organizations with larger numbers of directors and volunteers tend to receive more newspaper coverage.
Abstract: Media attention to the voluntary sector depends mainly on organizational resources of nonprofit organizations that can influence organizations' positions in a local community power structure. Relying on the resource dependency theory (Pfeffer & Salancik, 1978) as a conceptual framework, this study examines to what extent various features of nonprofit organizations yield different levels of media publicity through local newspapers and the Internet in a Midwestern community. Data were collected using multiple research methods, including public archive analysis, telephone and e-mail surveys, news archive analysis, and hyperlink analysis (N = 218). Hierarchical multiple regression analyses reveal that financially resource-rich, locally embedded organizations and organizations with larger numbers of directors and volunteers tend to receive more newspaper coverage. Analyses also indicate that nonlocal groups tend to receive more hyperlinks from other Web sites. Implications for media and voluntary associations ...
01 Aug 2009
TL;DR: The authors analyzes organizational factors which help to define connections between members of policy networks and finds evidence that resource dependence is a key factor in policy network connections, and that it is one of the most important organizational factors.
Abstract: The article analyzes organizational factors which help to define connections between members of policy networks. Evidence that resource dependence is a key factor in policy network connections, and...
TL;DR: In this article, the authors explore the level of dependence of small and medium-sized tourism enterprises (SMEs) in Finland on the resources of the Finnish Tourist Board (FTB).
Abstract: This article reports on a study to explore the level of dependence of small and medium-sized tourism enterprises (SMEs) in Finland on the resources of the Finnish Tourist Board (FTB). A tool to measure resource dependence was developed. The overall importance of specified resources, the level of exchange of these resources acquired from the FTB, the existence of alternative sources for similar resources, and access to them were assessed. The level of dependence of Finnish tourism SMEs on the FTB was reported to be moderate. Differences were, however, identified among different types of enterprises. The size of enterprises, their proportion of foreign guests, their marketing planning, and their cooperation with others affected the level of resource dependence. The FTB resources on which tourism SMEs were most dependent were destination marketing and marketing knowledge. Results contribute to an understanding of the role of national tourism organizations.