Showing papers on "Resource dependence theory published in 2013"

When Differences Unite: Resource Dependence in Heterogeneous Consumption Communities

Abstract: Although heterogeneity in consumption communities is pervasive, there is little understanding of its impact on communities. This study shows how heterogeneous communities operate and interact with the marketplace. Specifically, the authors draw on actor-network theory, conceptualizing community as a network of heterogeneous actors (i.e., individuals, institutions, and resources), and examine the interplay of these actors in a mainstream activity-based consumption community—the distance running community. Findings, derived from a multimethod investigation, show that communities can preserve continuity even when heterogeneity operates as a destabilizing force. Continuity preserves when community members depend on each other for social and economic resources: a dependency that promotes the use of frame alignment practices. These practices enable the community to (re)stabilize, reproduce, and reform over time. The authors also highlight the overlapping roles of consumers and producers and develop a dimensiona...

Quantumness in the context of) resource theories

Abstract: We review the basic idea behind resource theories, where we quantify quantum resources by specifying a restricted class of operations. This divides the state space into various sets, including states which are free (because they can be created under the class of operations), and those which are a resource (because they cannot be). One can quantify the worth of the resource by the relative entropy distance to the set of free states, and under certain conditions, this is a unique measure which quantifies the rate of state to state transitions. The framework includes entanglement, asymmetry and purity theory. It also includes thermodynamics, which is a hybrid resource theory combining purity theory and asymmetry. Another hybrid resource theory which merges purity theory and entanglement can be used to study quantumness of correlations and discord, and we present quantumness in this more general framework of resource theories.

When does ownership matter? Board characteristics and behavior

Abstract: We develop a contingency approach to explain how firm ownership influences the monitoring function of the board—measured as the magnitude of external audit fees contracted by the board—by extending agency theory to incorporate the resource dependence notion that boards have distinct incentives and abilities to monitor management. Analyses of data on Continental European companies reveal that while board independence and audit services are complementary when ownership is dispersed, this is not the case when ownership is concentrated—suggesting that ownership concentration and board composition become substitutes in terms of monitoring management. Additional analysis shows that the relationship between board composition and external audit fees is also contingent upon the type of the controlling shareholder. Copyright © 2013 John Wiley & Sons, Ltd.

Organizational Sponsorship and Founding Environments: A Contingency View on the Survival of Business-Incubated Firms, 1994–2007

Abstract: Organizational sponsorship mediates the relationship between new organizations and their environments by creating a resource-munificent context intended to increase survival rates among those new organizations. Existing theories are prone to treat such resource munificence as the inverse of resource dependence, indicating that the application of new resources in an entrepreneurial context should always benefit new firms. These existing theories, however, often overlook heterogeneity in both types of applied resources as well as founding environmental conditions. By attending to these nuances, we reveal that resource munificence is not necessarily predictive of organizational survival. We find that resource munificence related to sponsorship can potentially decrease or increase survival rates among new organizations and that these effects are contingent on fit of resource type with its respective geographic-based founding density. These findings confirm the need for a more-nuanced theory of sponsorship that attends to the mechanisms and conditions by which resource munificence is likely to alter new organization survival rates. [ABSTRACT FROM AUTHOR]

Organizational Sponsorship and Founding Environments: A Contingency View on the Survival of Business Incubated Firms, 1994-2007

Abstract: Organizational sponsorship refers to attempts to mediate the relationship between new organizations and their environments by creating a resource-munificent context intended to increase survival rates among those new organizations. This includes efforts such as business incubation, venture capital, and governmental policies that create resource munificent environments for entrepreneurial activity. Existing theories are prone to treat such resource munificence as the inverse of resource dependence, indicating that the application of new resources in an entrepreneurial context should always benefit new firms. These existing theories, however, often overlook heterogeneity in both the types of applied resources as well as the founding environmental conditions. By attending to these nuances, we reveal that resource munificence is not necessarily predictive of organizational survival. Employing a dataset of 178 university-based incubators hosting 2110 new organizations from 1994 to 2007, we find that the resource munificence related to sponsorship can potentially decrease or increase survival rates among new organizations, and that these effects are contingent on the fit of the resource type with the geographic-based founding density. These findings confirm the need for a more nuanced theory of sponsorship that attends to the mechanisms and conditions whereby resource munificence is likely to alter new organization survival rates.

More than a Metaphor: Assessing the Historical Legacy of Resource Dependence and its Contemporary Promise as a Theory of Environmental Complexity

Abstract: At its inception, resource dependence (RD) held the promise to become a robustly developed theoretical perspective. However, behind an ever-growing citation count, scholars—including one of its key architects—have asserted that RD no longer inspires much substantive research and now serves as little more than an appealing metaphor about organizations [Pfeffer, J. (2003). Introduction to the classic edition. In J. Pfeffer & G.R. Salancik, The external control of organizations: A resource dependence perspective (classic edition). New York: Harper & Row]. A systematic analysis of RD's uses in the management literature lends some credence to this assessment. However, our analysis also shows a perspective that has been broadly influential and well-supported in applications that cross multiple empirical domains. Moreover, this impact has been achieved despite the widespread neglect of what is arguably RD's most distinctive insight; namely that an organization's external environment is composed of other organiza...

Strengthening the Innovation Chain: The Role of Internal Innovation Climate and Strategic Relationships with Supply Chain Partners

Abstract: In this study, we use blended theoretical arguments from resource dependence theory, social capital theory, and the knowledge-based view to posit that supply chain partner innovativeness enhances a firm's innovation strategy which in turn positively influences innovation performance. In addition, we argue that the effect of supply chain partner innovativeness on product innovation strategy could be further enhanced by innovation climate and having strategic relationships with key supply chain partners. Using data collected from 207 manufacturing firms in Australia, the findings show that key supply chain partner innovativeness has a positive effect on product innovation strategy. Further, the effect of supply chain partner innovativeness on innovation strategy is enhanced when firms have stronger strategic relationships with their key supply chain partners. Finally, we find that the joint influence of innovation climate and strategic relationships with key supply chain partners enhances the effect of supply chain partner innovativeness on innovation strategy. The theoretical and practical implications of the study are discussed.

Transformational-transactional leadership and upward influence: the role of Relative Leader-Member Exchanges (RLMX) and Perceived Organizational Support (POS)

Abstract: By utilizing the resource theory of social exchange (Foa & Foa, 1974), we attempted to cast light on the dynamics of the relationship between transformational-transactional leadership and employees' upward influence tactics. Using data collected in two time points (N=200, 1. year apart), we found perceptions of transformational leadership (Time 1) to be positively related to the use of soft and rational upward influence tactics (Time 2) whereas transactional leadership (Time 1) was positively related to the use of soft and hard upward influence tactics (Time 2). We also found support for a 3-way interaction between transformational-transactional leadership, relative Leader Member Exchanges (RLMX) and Perceived Organizational Support (POS) on employees' upward influence tactics. Specifically, in resource-constrained conditions (low RLMX and low POS), employees were likely to use soft tactics to influence a manager they perceived as transformational to a greater extent than in resource-munificent conditions. They were also likely to employ higher levels of soft and hard tactics to influence a transactional manager in resource-constrained rather than in resource-munificent conditions.

Venture Boards: Distinctive Monitoring and Implications for Firm Performance

Abstract: Several unique characteristics of ventures distinguish them from public firms and lead to distinctive monitoring issues. In this article I develop a theoretical framework that links the attributes of the venture and the board composition with venture board monitoring and its implications for firm performance. Contributing to the strategy literature on corporate governance, the framework offers counterintuitive deviations from how agency theory is typically conceptualized, highlights that an unexpected "principal problem" could emerge as the separation of ownership and control is reduced, and presents novel insights about the interdependence between agency theory and resource dependence theory. This framework also adds to the research on entrepreneurial firms by complementing the extant emphasis in the literature on resource provisioning and by offering a richer view of key actors through opening the black box of strategic action in ventures. More broadly, by focusing on an underexamined but important context beyond public firms, this article highlights rich opportunities for developing a contingency theory of corporate governance.

A Model of Strategic Nonprofit Human Resource Management

Abstract: This article presents a model of strategic nonprofit human resource management (SNHRM) that draws from resource-based view and resource dependence theory, to explain the determinants of strategic human resources management (SHRM) in nonprofit organizations. Three guiding principles, strategy types and propositions are presented to explain the complex interactions and processes in the SNHRM system. The article lays a foundation for future research and offers managers a framework for SHRM planning and implementation in nonprofit organizations.

Resource Acquisition in the Emergence Phase: Considering the Effects of Embeddedness and Resource Dependence

Abstract: Despite evidence that embedded ties are important to entrepreneurs seeking low–cost resources, no research to date has explored how this relationship unfolds in the context of emerging organization...

Integrating agency and resource dependence theory : firm profitability, industry regulation, and board task performance

Abstract: Boards of directors are key governancemechanisms in organizations and fulfill twomain tasks:monitoringmanagers and firm performance, and providing advice and access to resources. In spite of a wealth of researchmuch remains unknown about how boards attend to the two tasks. This study investigates whether organizational (firm profitability) and environmental factors (industry regulation) affect board task performance. The data combine CEOs' responses to a questionnaire, and archival data from a sample of large Italian firms. Findings show that past firm performance is negatively associatedwith board monitoring and advice tasks; greater industry regulation enhances perceived board task performance; board monitoring and advice tasks tend to reinforce each other, despite their theoretical and practical distinction.

External COO/presidents as expert directors: A new look at the service role of boards

Abstract: Much of the scholarship on boards of directors has examined either the control (i.e., monitoring) role or the resource dependence role that boards fill. Relatively little has examined the service role, wherein directors provide advice and guidance to management. This study builds on recent work exploring director expertise by asking how operational expertise on boards impacts firm performance. We find that having external COO/presidents on a board of directors positively impacts firm performance when the firm's operational efficiency is declining, but negatively impacts performance when the firm's operational efficiency is improving. We also find that other types of external executives serving as directors exhibit the opposite relationship, suggesting that the value of director expertise is context-dependent. We discuss the implications of these findings for director selection. Copyright © 2013 John Wiley & Sons, Ltd.

The Effect of Human Resources Development on Organizational Productivity

Abstract: This paper is “The Effect of Human resource Development on organizational productivity.” The study aims to determine the extent at which effective human resource development can enhance productivity in order to reduce poor performance in organization, to determine the efficiency of human resource training and development in organization growth, to ascertain if human resource development have any significant impact on organizational profitability, to determine and identify the factors affecting human resource development and organizational productivity and to ascertain the attitude of the senior management and other employees on the need for proper utilization of available human resources which have tremendous effect on the firm’s profitability. The five research questions and three hypotheses were formulated in line with the objectives of the study. To achieve the aims of the study, data were collected from both primary and secondary source. Data collected were analyzed by use of means, variance and standard deviation and the three hypothesis formulated were tested using z-test statistical tool. Based on the analysis, the study found that human resource development is very vital to any organizations ranging from small to large scare enterprise since it is well known that no business can exist entirely without human being also that one of the major functions of human resource development is the engagement of people to work in order to achieve sales growth and profitability another finding is that the method of training and development as gathered from interview contracted by the researcher are just by reason of the problems the company has due to lack of fund. Based on the findings of the study, the researcher recommends that organization should inculcate the habit of attending seminars and conference, the company should make sure that the effort of employers are appraised from time to time to find out how they contribute to the achievement of organizational goals and also educational qualification must be a pre-requisite for the recruitment, selection promotion and placement of workers.

Enhancing Innovation Through International Joint Venture Portfolios: From the Emerging Firm Perspective

Abstract: Anecdotal evidence continues to suggest that many firms in emerging economies (EEs) lack innovation. To investigate how these firms might improve their innovation, the authors integrate resource dependence theory with network theory and the resource-based view to theorize that EE firms can advance their innovation by configuring their international joint venture (IJV) portfolio characteristics at the network and focal firm levels. The results indicate that an EE firm's innovation improves when structural hole positions in its IJV portfolio increase but decreases when network centrality increases. Such relationships are further contingent on two focal firm-level IJV portfolio characteristics: IJV portfolio size and IJV portfolio resource commitment.

The Impact of Operational Diversity on Corporate Philanthropy: An Empirical Study of U.S. Companies.

Abstract: This paper investigates the impact of diversity on corporate philanthropy. Compared to previous studies that have considered the influence of board diversity and CEO gender on corporate philanthropy, this study introduces the concept of operational diversity, which is the implementation of diversity programs at management, employee, and supply chain levels, and further, it explains why operational diversity influences corporate philanthropy, by using the premises of resource dependence theory. Second, this study also investigates the influence of board diversity on corporate philanthropy. Third, this study uses a large sample of U.S. firms over the period of 1991–2009 and tries to mitigate possible omitted variables and endogeneity problems that are often overlooked in previous research. We demonstrate that firms with operational diversity programs are likely more dependent on a broad variety of resources and give more to community as a strategic maneuver; hence, operational diversity is a better indicator for predicting future corporate giving than board diversity alone. However, having a woman or a member of a minority as a company’s chief executive officer is not sufficient to impact its charitable giving. A battery of robustness tests support our conclusion and confirm that our results are not driven by a firm’s general corporate social responsibility (CSR) score, gender or independence of board members, or firm ownership. This paper will assist researchers, practitioners, and other stakeholders in deepening their understanding of the predictors of corporate giving.

An Empirical Investigation on Firms’ Proactive and Passive Motivation for Bribery in China

Abstract: This research investigates firms’ bribery motivations in China Based on resource dependence theory and anomie theory, we identify resource conditions as firms’ proactive motivation to bribe and firms’ perceived institutional environment as their passive motivation to bribe We use the data from 2002 World Business Environment Survey, collected by the World Bank, to investigate firms’ bribery in the world’s largest emerging market, China We employ a multi-level logistic model to test our hypotheses The results show that unsatisfactory general and task environmental conditions may trigger firms to bribe in order to compete for better resources and opportunities; institutional conditions such as the security expenditure and anomie climate may make firms perceive bribery as a common phenomenon and thus induce firms to bribe This research provides some insights to understand business bribery behaviors in emerging market It also discusses some managerial implications and guidelines for policy-making from the findings

Global Supply Chain Management: Toward a Theoretically Driven Research Agenda

Abstract: As competition becomes increasingly global in nature, the importance of global supply chain management grows. Yet, research attention on this matter has been limited. We seek to offer a strong foundation for future research on global supply chain management by examining it from the perspectives of six prominent organizational theories that range in emphasis from primarily endogenous to primarily exogenous influences. We, in turn, apply real options theory, internationalization theory, organizational economics, resource dependence theory, social network theory, and institutional theory. We also examine the implications for global supply chain management of juxtaposing the insights provided by multiple theories. Our hope is that the ideas generated by applying these theories set the stage for subsequent theoretically robust investigations of global supply chain management.

Governance of Interorganizational Information Systems: A Resource Dependence Perspective

Abstract: In this paper we examine why firms seek to control and own interorganizational information systems, or IOS. Practitioners have largely cited the issues related to control and ownership of IOS, referred to as IOS governance in this paper, as the key reason behind the failure of many IOS initiatives. We distinguish between two IOS governance modes, transactional and financial, and develop a mediated-moderation model to explain the factors influencing the governance choices. In our model, the key motivators of IOS governance are the criticality and the replaceability of the resources that firms procure, which affect IOS governance through their influence on the degree of operational integration existing between partners. We hypothesize that while resource criticality will increase the needs for financial and transactional governance because of its positive impact on operational integration, resource replaceability will negatively influence governance needs because of its negative impact on operational integr...

Diversity Strategies and Business Logic Why Do Companies Employ Ethnic Minorities

Abstract: Firms have many reasons to employ ethnic minorities or refrain from employing them. Management scholars focusing on workplace diversity have made several attempts to describe these reasons, but a theoretically grounded framework is still missing. This article outlines a novel approach to this topic based on resource dependence theory. We propose a typology of diversity strategies defined by the kind of critical resources that ethnic minorities provide to organizations. Focusing on business logic, the typology offers many applications for future research on antecedents and consequences of the strategies, a diverse competence pool, and power relations. We suggest resource dependence theory as a fruitful explanatory approach to diversity and describe practical implications for different actors.

Corporate Social and Financial Performance: Empirical Evidence from American Companies

Abstract: The objective of this study is to address the issue of the relationship between corporate social and financial performance by moderating company size and financial leverage.with the use of type of industry as control variable. The Corporate social performance (CSP/CSR) is measured using seven item developed initially by Michael Jantzi Research Associate, Inc and used by Mahoney and Robert (2007). To attaint main research objective, the measure of CSP composite is used. Furthermore, company size, financial leverage, and type ofindustry are measured by total asset, degree of intermal and external source to finance the company’s assets, and dummy variable (0 for non manufacture and 1 for manufacture), respectively. A moderated multiple regression model is used in the present study. Four models are developed in the study basedon the theory of slack resiurce and good management. The result of the present study is that corporate social performance (CSP/CSR) has no effect on corporate financial performance (CFP) under slack resource and good management theory it is also shown that only financial leverage could moderate the interaction between CSP/CSR and financial performance (CSP). However, based on the overall analysis, it may be reasonable to come to conclusion that the relationship between CSP and financial performance is spurious as Orlitzki (2000) concluded. Key Words: Corporate social performance, corporate social responsibility, financial performance, good management theory, stakeholder, and slack resource theory.

The Service Role of Outside Boards in High Tech Start‐ups: A Resource Dependency Perspective

Abstract: Despite growing interest in the board of directors of entrepreneurial firms, the role of outside board members in high tech start-ups has been largely neglected. This dearth of research is surprising since the high level of resource dependency these ventures face is likely to heighten the potential contribution outside board members can make. We argue that, for high tech start-ups, the service role the board plays will be crucial in overcoming resource dependencies. In contrast to existing studies that tie the outside boards’ servicing role to board characteristics, we propose that greater attention needs to be paid to the resource profile of the venture. Building on resource dependency theory, we find that the extent to which the outside board members fulfil a service role is dependent on the initial human, financial and technological resource base of the entrepreneurial venture. Specifically, we find that ventures with less diversified teams, teams with lower levels of R&D experience and higher levels of financial experience and ventures earlier in the technological development process receive higher levels of support from the outside board.

Does board social capital influence chief executive officers' investment decisions in research and development?

Abstract: The findings of the chief executive officer (CEO) characteristics–research and development (R&D) investment relationship remain incomplete if previous unexamined contingencies are not considered. Very few studies in this area have invariably focused on the constraints from the external environment and overlooked the important influence of board social capital on such relationship. This study uses insights from resource dependence theory to examine how the effects of CEO characteristics on R&D investment are contingent on board social capital. The results show that board social capital mitigates/enhances the negative/positive effect of CEO tenure/CEO educational level on R&D investment, supporting the view that board social capital, as an important conduit to link firms to critical information and essential resources in the environment, may offer better counsel to CEOs and enhance their decision-making capabilities in moving toward R&D. One important implication is that firms wishing to encourage innovation through R&D spending should consider nominating directors with rich social capital to the board because they may assist CEOs in coping with R&D complexities and acquiring requisite resources, leading to a better planning of R&D.

Resource Constraints or Cultural Conformity? Nonprofit Relationships with Businesses

Abstract: Nonprofit interactions with businesses have become increasingly diverse, but which nonprofits establish relationships, and to what extent do relationships depend on the form or type of tie? Focusing on nonprofit collaboration with businesses and donations from businesses, we test arguments based on sociological institutionalism and resource dependence theory. We find that nonprofits relying on earned income, nonprofits led by individuals with management degrees, and rationalized nonprofits all are more likely to report collaborations with businesses, aligning with expectations from institutional theory. For donative ties between businesses and nonprofits, we find that rationalized nonprofits are more likely to have charitable gifts from businesses. However, nonprofits with earned income are less likely to have business donations, and funding diversity has a salient positive effect. These results reveal important but paradoxical institutional and resource dependence effects. We conclude with a discussion of our divergent findings and set an agenda for additional research on the topic.