Showing papers on "Resource dependence theory published in 2016"

Do Political Connections Buffer Firms from or Bind Firms to the Government? A Study of Corporate Charitable Donations of Chinese Firms

Abstract: Do political connections buffer firms from or bind firms to the government? To examine this theoretical puzzle, we distinguish two types of managerial political connections, ascribed and achieved, ...

The dark side of board political capital: enabling blockholder rent appropriation

Abstract: Resource dependence theorists argue that boards of directors with political capital can benefit focal firms by reducing uncertainty and providing preferential resources. Here, we develop theory reg...

Stakeholder Relationships, Engagement, and Sustainability Reporting

Abstract: The concept of sustainability was developed in response to stakeholder demands. One of the key mechanisms for engaging stakeholders is sustainability disclosure, often in the form of a report. Yet, how reporting is used to engage stakeholders is understudied. Using resource dependence and stakeholder theories, we investigate how companies within the same industry address different dependencies on stakeholders for economic, natural environment, and social resources and thus engage stakeholders accordingly. To achieve this objective, we conducted our research using qualitative research methods. Our findings suggest that the resource dependencies on different stakeholders lead to development of different stakeholder relationships and thus appropriate resources within the company to execute engagement strategies that are informing, responding, or involving. Our research explains why diversity exists in sustainability disclosure by studying how it is used to engage stakeholders. We find that five sustainability reporting characteristics are associated with the company’s stakeholder engagement strategy: directness of communication, clarity of stakeholder identity, deliberateness of collecting feedback, broadness of stakeholder inclusiveness, and utilization of stakeholder engagement for learning. Our study develops the literature by providing insight into companies’ choices of stakeholder engagement strategy thus explaining diversity in sustainability reporting based on the characteristics and relationships with specific stakeholders.

Mitigation, Avoidance, or Acceptance? Managing Supplier Sustainability Risk

Abstract: This study takes a conceptual theory building approach to develop a framework for managing supplier sustainability risk—the adverse impact on a buying organization from a supplier's social or environmental misconduct. Using anecdotal evidence and the literature, we present four distinct risk management strategies that supply managers adopt: risk avoidance, monitoring-based risk mitigation, collaboration-based risk mitigation, and risk acceptance. Drawing on agency and resource dependence theories, we study how the interactions of two key risk management predictors—that is, the supply managers’ perceived risk and the buyer–supplier dependence structure—affect supply managers’ strategy choice. Specifically, we propose that a collaborative-based mitigation strategy, involving direct interaction and solution development with the suppliers, is selected by supply managers in a high perceived risk-buyer dominant context. In a low perceived risk-buyer dominant context, however, a monitoring-based mitigation strategy is preferred. When the buyer and the supplier are not dependent on each other and there is a low perceived risk, the supply managers accept the risk by taking no actions, whereas in a high perceived risk-independent context the supply managers would avoid the risk by terminating the relationship with the supplier. We conclude the study by describing the theoretical contributions and managerial implications of the study as well as the avenues for future research.

Searching for Women on Boards: An Analysis from the Supply and Demand Perspective

Abstract: Manuscript Type Review Research Question/Issue This paper seeks to provide a systematic review of the multidisciplinary theoretical approaches to women on boards in order to understand the factors that hinder and facilitate the access of women to boards, to show the instruments that can be used to promote women to senior corporate positions, and to outline a research agenda suggesting gaps that still need to be filled. Research Finding/Results Women's access to boards appears to be fragmented in research silos from a variety of areas, lacking a comprehensive view that provides instruments to overcome the barriers hindering the access of women to corporate boards. More in particular, this paper has found very little scientific analysis to understand what instruments can be the most efficient in eliminating barriers for women to reach boardrooms given different cultural environments. Theoretical Implications This paper aims to create a comprehensive framework for understanding the presence of women on boards and for indicating existing gaps to be filled by new research in the future. This framework will help future researchers in analyzing specific instruments and to measure their efficiency in eliminating gender imbalance. Depending on the approach taken for research, the theoretical backgrounds used vary. While on the supply side the predominant theories are gender role theory, gender self-schema, and work–family conflict, the demand side is based on gender discrimination, human and social capital theory, resource dependence theory, and institutional environment theory. Practical Implications This research provides suggestions to typify causes and provide nuanced policy tools to promote women into leadership positions. Future lines of research are proposed to fill the gaps in understanding female representation in top management positions.

WANTED: A Good Network Theory of Organization

Abstract: Gerald R. Salancik Carnegie Mellon University Network analysis corrects a tendency in organizational theory to focus on the trees rather than the forest, on the actions of individual organizations rather than on the organization of their actions. Since it is fitting that organizational theory address organization, the reviews of Ronald Burt's book Structural Holes by David Krackhardt and Steven Andrews offer an opportunity for reflecting on the promise of social network analysis for organizational theory. Much of its promise has yet to be realized, in that social network analysis has been used mainly as a tool for analyzing data about organizations rather than for understanding organizations per se. Thus we know that personal interaction patterns in organizations are associated with power, turnover, information flows, attitudes, promotion opportunities, and social support. Beyond a single organization, we know that firms cluster because of their involvements on each other's boards and that such clusters relate to community influence, to corporate giving, to the adoption of defenses against corporate takeovers, or to the prices firms pay when acquiring other firms. We know also that network positions are related to power and that the structure of resource dependence relations shadows how firms conform to the demands of other firms or how they extract profits from one another.

Vertical Coopetition and the Sales Growth of Young and Small Firms

Abstract: Vertical coopetition describes a situation where a firm has a vertical exchange relationship with a direct competitor. Drawing on resource-based perspectives and resource dependence theory, we examine specific characteristics of vertical coopetition that affect the sales growth of young and small firms. We propose that the size of the competitor and mutual dependence as well as overdependence among the cooperating rivals affect the growth potential of young and small firms differently. Our research makes a contribution to the literature by disentangling some of the benefits and threats related to vertical coopetition for young and small firms.

Institutional fields as linked arenas: Inter-field resource dependence, institutional work and institutional change

Abstract: Theories of institutional change have paid limited attention to the ways in which relations between institutional fields might facilitate or hinder institutional change. I introduce inter-field resource dependence as an important condition explaining institutional change between fields. Building on resource dependence theory, I conceptualize two dimensions of inter-field resource dependence: mutual dependence and power imbalance. I argue that these two dimensions have opposite effects on the likelihood of institutional change between fields. Mutual dependence between two fields increases the chances of institutional change by inducing actors in both the fields to work at creating new shared institutions in order to regulate their mutual dependence. Power imbalance between two fields decreases the chances of institutional change by inducing actors in the dominant field to work at maintaining existing institutions in order to preserve their power. Thus, different types of inter-field resource dependence motivate actors to undertake different forms of institutional work, which in turn shape the likelihood of institutional change between fields. Developing this core argument, I theorize that whether the institutional change occurring between two fields is radical or incremental is a function of the type of resource dependence linking the two fields; for example, when power imbalance is high, institutional change is unlikely but when it occurs it tends to be radical.

Organizational Behaviour in 21st Century – 'Theory A' for Managing People for Performance

Abstract: Theory X, Theory Y and Theory Z in organizational behaviour (OB) are related to human motivation and management. Theory X and Y coined by Douglas McGregor in the late 1960s, says that the average human being is lazy and self-centred, lacks ambition, dislikes change, and longs to be told what to do. The corresponding managerial approach emphasizes total control. Theory Y maintains that human beings are active rather than passive shapers of themselves and of their environment. They long to grow and assume responsibility. Theory Z of William Ouchi focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job. The above theories were developed based on research conducted in various production related organizations in the 20th century. But in the 21st century, changes in business models, automation of production process, changes in technology & business environment, and changes in people's perception, are transforming organizations into global entities. In the context of emergence of service industries and global e-business organizations, these are no longer applicable and need modification. In this paper, we have made an attempt to relook into human motivational theories and developed a new Organizational Attitude Theory called "Theory of Accountability" (Theory A). The four major constructs of Theory A are fixing Responsibility, maintaining Accountability, continuous Monitoring, and fulfilling pre-determined Target (RAMT). In this paper, some of the existing theories of organizational behaviour are examined, and basic postulates and detailed organizational model for Theory A is depicted.

Ecological uncertainty, adaptation, and mitigation in the U.S. ski resort industry: Managing resource dependence and institutional pressures

Abstract: We draw on resource dependence and institutional theories to study how firms manage uncertainty in nature (ecological uncertainty) in the U.S. ski resort industry. Through resource dependence theory, we develop the concept of ecological uncertainty and explain its effects on firms' access to and management of natural resources. We then predict that firms adapt to ecological uncertainty with natural-resource-intensive practices, as well as practices that attempt to mitigate its underlying causes. Using institutional theory, we also predict that environmental expectations moderate these responses. Our results indicate that firms did manage ecological uncertainty by adopting natural-resource-intensive practices, but not mitigation practices. They also show that stronger environmental expectations constrained firms from adopting natural-resource-intensive practices and promoted their adoption of mitigation practices in response to ecological uncertainty. Copyright © 2015 John Wiley & Sons, Ltd.

Political Connections, Home Formal Institutions, and Internationalization: Evidence from China

Abstract: This study draws on the resource dependence theory and institution-based view to examine political connections in the home market and home formal institutions for their impact on the internationalization of emerging market firms in the context of China. The results suggest that political connections at home may prevent emerging market firms from implementing internationalization strategies by reducing the dependence constraints imposed by local governments and foreign firms, whereas home formal institutional development may promote the strategy transition of emerging market firms from building political connections to international expansion and also reduce the negative impact of political connections. Overall, our findings indicate that political connections and formal institutions at home play an important role in shaping emerging market firms’ strategies of outward internationalization.

Sustainability Management within Supply Chains – A Resource Dependence View

Abstract: Proceeding from three basic concepts of resource dependence theory – organizational effectiveness, interdependence and external control – we conducted a multiple-case study to investigate factors that facilitate and hinder sustainability management within supply chains. Our empirical observations highlight that focal firms do not necessarily transfer their own corporate sustainability agendas into control mechanisms for managing the sustainability of their suppliers. Based on this insight, we develop a new theory that explains how intra- and interorganizational sustainability management is affected by a firm's business case for promoting sustainability, control mechanisms, trade-offs, trust and market liberalization. The theory offers new insights into drivers and barriers for effective interorganizational sustainability management, whereas previous theories could not fully explain the reasons for diverging sustainability management practices in supply chains. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

Resource Dependence In Non-profit Organizations: Is It Harder To Fundraise If You Diversify Your Revenue Structure?

Abstract: This article explores how fundraising efficiency is affected by changes in diversification of revenues in non-profit organizations. It uses random effect regression and Arellano–Bond models to study this phenomenon in a sample of 10358 US non-profits during the 1997–2007 period. We find a negative impact on fundraising efficiency when NPOs alter their locus of dependence and change their pattern of diversification. This effect is impacted by organizational size and industry. Previous studies have suggested that income heterogeneity is associated with organizational stability and financial strength. Using a change (versus level) model of funding diversity, our work shows that increased diversification leads to a higher operational inefficiency that could be penalized by potential donors.

The contingent effect of state participation on the dissolution of international joint ventures: A resource dependence approach

Abstract: We adopt a resource dependence approach to explain the effect of state participation on the dissolution of international joint ventures (IJVs). While resource dependence theory (RDT) has been used to explain the formation of IJVs, we propose an extension of the theory to explain their dissolution. We do so by highlighting the match between foreign firms’ resource needs (resource hierarchy) and the resource provision roles of state-controlled vs private local partners (resource profiles). We further argue that the effect of state participation on the dissolution of IJVs is moderated by foreign firms’ host country experience and IJV age. We test our hypotheses by using data on 623 IJVs in China. Our results show that state participation reduces the risk of IJV dissolution and that the strength of this effect differs depending on the type of state-controlled actor that is involved in an IJV. We also find that host country experience and IJV age moderate the effect of state participation on IJV dissolution. These findings enhance our understanding of IJV dissolution and contribute to the development of RDT.

Entrepreneurial networks across the business life cycle: the case of Alpine hospitality entrepreneurs

Abstract: Purpose This paper aims to deliver a detailed understanding about the dynamics of entrepreneurial networks along the enterprise life cycle of hospitality enterprises. Design/methodology/approach Case study research was conducted, using in-depth interviews with hospitality entrepreneurs and additional material (e.g. website information). The data were analyzed applying the qualitative method GABEK (GAnzheitliche BEwaltigung von Komplexitat – holistic processing of complexity) which enables researchers to reveal concepts and attitudes of interviewees. Findings Networks of hospitality entrepreneurs shift from local ties to industry-specific actor groups to local and non-local ties to actor groups inside and outside the industry. Throughout the enterprise life cycle, entrepreneurs prefer strong ties. The transition from one family generation to the next and changes in the competitive environment are important triggers of network configurations. Research limitations/implications Future research should reproduce the findings and investigate the proposed relationships in representative samples from different regions and industries. The influences of different actors within networks provide fertile research opportunities. Practical implications Networks provide viable means for tackling the challenges of growth in the hospitality industry. The research provides managerial implications for how networks should be configured for meeting resource dependencies of different development stages. Originality/value Building on resource dependency theory, this research emphasizes which challenges the enterprise life cycle imposes upon network management in the hospitality industry. While past research has focused upon the early stages of the enterprise life cycle, this study investigates also later stages. Furthermore, triggers of network management are identified.

An ecosystem view on third party mobile payment providers: a case study of Alipay wallet

Abstract: Purpose To understand why the penetration of handset-based mobile payment in most countries is still low has been an important research topic for the last 15 years, and it has been analyzed from different perspectives. However, the analysis of a single aspect cannot provide a sophisticated answer to the complicated underlying question. The purpose of this paper is to understand how a relatively successful m-payment ecosystem is created and sustained through the coopetition of various actors. Design/methodology/approach To that end, the authors analyze the case of Alipay wallet, the m-payment service provider with the largest market share in China, and focus on understanding the motivations and subsequent actions of the organizations cooperating in the Alipay wallet core ecosystem. Findings The results show that actors with heterogeneous and complementary resources can forge sustainable collaboration. Within an ecosystem, although always constrained by resources and capabilities, the actions that the core actors take and the resulting power imbalances are dynamically changing, reflecting actors’ aim of reducing uncertainty. Research limitations/implications The main limitation of this case is that it was conducted in a Chinese context, which has specific features that may not apply to other cases. In addition, this study is based on a single case study in a single country, without comparing the results to any other cases or countries. Therefore, some modifications may have to be made when applying the framework and generalizing the results. Practical implications With regards to the practical perspective, the Alipay case may serve as an example that other providers follow, taking similar actions to increase the dependency of others and reduce their own dependency on others. It is helpful to take a keystone strategy to create value within the ecosystem and share this value with other participants. Moreover, Alipay acts as the platform provider, in addition to managing value creation within the ecosystem and sharing that value with the other participants. Alipay focuses on the business and strategic needs of the core actors, without threatening their main business, for example, Alipay focuses on micro-payments, which does not pose a direct competition to banks, who mainly rely on macro-payments to generate profit. Micro-payments are often related to high transaction costs for banks. In addition, although it is difficult to define the boundaries of actors in the ecosystem, the core business of every actor is the key competitive or even survival condition. This notion should be taken into consideration by actors whose actions affect the business of other ecosystem partners. For instance, Alipay will not aim to become a bank, as they know that if they do so, they cannot connect any other bank to their platform. In other words, the scope and boundary of the actors are clearly identified so that the core business will not be threatened. Sords, we can learn from Alipay that it pays off to focus on one area, and not to let your competitors challenge you. Originality/value The authors proposed the StReS framework for analyzing a business ecosystem by combining resource-based review, resource dependency theories and network analysis for investigating the motivations of the organizations cooperating in the core ecosystem and the actions they have taken to reduce dependency and uncertainty.

Theory A for Optimizing Human Productivity

Abstract: Optimizing human productivity is a challenging process for the organizations and this process involves getting the best performance from employees within the organizational constraints. Even though the performance of human resources in organizations mainly depend on technology and external environment, ways of thinking individually and by teams, and humanistic orientation are important. Various models are used in developing a strategy to improve the people’s performance in organizations. Such for example, are theory X, theory Y and theory A. All these in common are based on presumptions about the human behaviour at work. Theory X and Y are opposing each other in predicting human nature. Theory X describes human nature as lazy, dislikes work and avoids, lacks responsibility, seeks security, lack of ambition and therefore should be forced, controlled, threatened or closely supervised to get work. Theory Y believes in the exercise of self-direction and self-control investing faith in individual potential, imagination, creativity and its application to work. Against this is theory A which focuses innate human potential, inherent urge for creativity, self-expression and contribution to the organization as motivators. As such, managers have to transform average employee to real performers using role models and self-exploration. This paper attempts to compare factors affecting organizational performance in all these aforesaid theories. It also details a set of model operational steps in introducing the theory of accountability. It also makes a SWOC analysis of theory A and its application to different types of organizations.

Employer Association Responses to the Effects of Bargaining Decentralization in Australia and Italy: Seeking Explanations from Organizational Theory

Abstract: The literature has neglected to analyse employer associations as organizations facing potential environmental threats to their financial sustainability. We examine associations' responses to collective bargaining decentralization, a major, contemporary threat. Using a qualitative, comparative case approach, we examine eight associations — four each in Australia and Italy — to develop a model of response types. Stronger decentralization effects increase associations' exposure to new and heightened competition, which in turn produces stronger association responses. These include prioritizing commercial over associational objectives. We analyse responses using strategic choice and resource dependence theories, finding that associations use both. However, the decision how to combine them reflects environmental conditions as well as choices linking organizational purpose and financial sustainability.

Board composition, board size and financial performance of Johannesburg stock exchange companies

Abstract: On the basis of agency theory and resource dependence theory, as well as other corporate governance literature, it is predicted that board composition measured as the ratio of non-executive to executive board members and the number of directors on a firm’s board can be positively related to firm performance. This study seeks to test the predictions of this body of theory and to investigate the form of the empirical relationships among these effects. In so doing, this study tests theory that relates these variables in the context of a developing country, using data from South Africa’s Johannesburg Stock Exchange, over a seven-year period, 2006–2012.

Trust antecedents, trust and online microsourcing adoption

Abstract: The online microsourcing marketplace is a new form of outsourcing that is organized over online platforms for the performance of relatively small service tasks. Microsourcing offers a more flexible way to hire contract workers or to outsource. Prior research indicates the importance of individual-level trust when choosing providers in online sourcing marketplaces. We argue that institution-based trust is also crucial for online microsourcing adoptions. Drawing on a trust framework adapted from prior literature, this paper uncovers the trust-building mechanisms in online microsourcing marketplaces, as well as the marketplace-related attributes for online microsourcing adoption. The proposed research model is tested with a data set collected from the clients of a typical marketplace in China - zhubajie.com. The findings suggest that perceptions of resource-based attributes of a marketplace, together with the perceived effectiveness of its intermediary role, can help to build trust towards the marketplace, enhancing trust towards the community of providers and driving the intent to adopt online microsourcing. Thus, this paper confirms the roles of online marketplaces as both the resource pool and the transaction intermediary from the perspective of clients. Finally, this paper not only indicates the relevance of resource theories in understanding this new trend in outsourcing, but also suggests the importance of trusted relational governance in governing online microsourcing transactions. Institution-based trust is crucial for online microsourcing adoptions.Trust in the Marketplace enhances the intention to engage with the marketplace.Identified four decisional attributes based upon resource theoriesUncovered the trust-building mechanisms in online microsourcing marketplacesExamined a relatively new landscape of outsourcing - online microsourcing

Host Country Network, Industry Experiences, and International Alliance Formation: Experience from the Venture Capital Industry

Abstract: Integrating resource dependence and social network theories, we investigate how foreign firms’ position in alliance network in host country influences their further allying with firms from the host and home countries. We introduce network centrality as a factor that influences two competing forces in alliance formation: willingness and attractiveness. Furthermore, we argue that foreign firms suffering from a low network centrality may find it easier to enhance their network position if they have industry experience. Our analysis of data on US venture capital firms’ investment in China supports our theoretical framework. Theoretical and managerial implications of our findings are discussed.

The provision of business advice to SMEs by external accountants

Abstract: Purpose – Business advisory services are an emerging service category for external accountants in the small and medium-sized enterprise (SME) environment. The purpose of this study is to investigate determinants of SME demand for business advice, drawing on the agency theory, relational marketing and resource-based literatures. Design/methodology/approach – The study empirically tested theoretical predictions based on an Australia-wide survey of SMEs, in which 485 firms responded to a questionnaire. Findings – The results show that the purchase of business advice is significantly and positively associated with the perceived competence of the external accountant, but significantly and negatively associated with length of the relationship. However, the authors observe a significant positive interaction between tenure of the relationship and competence. A unique contribution of this study is the development of the understanding of the combined role of the external accountant’s competence and the tenure of th...