Showing papers on "Resource dependence theory published in 2018"

Conservation of Resources in the Organizational Context: The Reality of Resources and Their Consequences

Abstract: Over the past 30 years, conservation of resources (COR) theory has become one of the most widely cited theories in organizational psychology and organizational behavior. COR theory has been adopted across the many areas of the stress spectrum, from burnout to traumatic stress. Further attesting to the theory's centrality, COR theory is largely the basis for the more work-specific leading theory of organizational stress, namely the job demands-resources model. One of the major advantages of COR theory is its ability to make a wide range of specific hypotheses that are much broader than those offered by theories that focus on a single central resource, such as control, or that speak about resources in general. In this article, we will revisit the principles and corollaries of COR theory that inform those more specific hypotheses and will review research in organizational behavior that has relied on the theory.

Supply chain learning of sustainability in multi-tier supply chains: A resource orchestration perspective

Abstract: Purpose The purpose of this paper is to explore how multinational corporations (MNCs) orchestrate internal and external resources to help their multi-tier supply chains learn sustainability-related knowledge. Design/methodology/approach An exploratory multiple case study approach was adopted and three MNCs’ sustainable initiatives in China were examined. The data were primarily collected through 43 semi-structured interviews with managers of focal companies and their multi-tier suppliers. Findings The authors found that in order to facilitate their supply chains to learn sustainability, MNCs tend to orchestrate in breadth by internally setting up new functional departments and externally working with third parties, and orchestrate in depth working directly with their extreme upstream suppliers adopting varied governance mechanisms on lower-tier suppliers along the project lifecycle. The resource orchestration in breadth and depth and along the project lifecycle results in changes of supply chain structure. Practical implications The proposed conceptual model provides an overall framework for companies to design and implement their multi-tier sustainable initiatives. Companies could learn from the suggested learning stages and the best practices of case companies. Originality/value The authors extend and enrich resource orchestration perspective (ROP), which is internally focused, to a supply chain level, and answer a theoretical question of how MNCs orchestrate their internal and external resources to help their supply chains to learn sustainability. The extension of ROP refutes the resource dependence theory, which adopts a passive approach of relying on external suppliers and proposes that MNCs should proactively work with internal and external stakeholders to learn sustainability.

The impact of board characteristics on the financial performance of Tanzanian firms

Abstract: Purpose - This study investigates the impact of board characteristics on the financial performance of listed firms in Tanzania. Board characteristics, including outside directors, board size, CEO/ Chair duality, gender diversity, board skill and foreign directors are addressed in the Tanzanian context by applying two corporate governance theories: namely, agency theory; and resource dependence theory. Design/methodology/approach - The paper uses balanced panel data regression analysis on 80 firm-years observations (2006-2013) from annual reports and semi- structured interviews were conducted with 12 key stakeholders. The study uses also a mixed methods approach and applies a convergent parallel design (Creswell, 2011) to integrate quantitative and qualitative data. Findings - It was found that in terms of agency theory, while the findings support the separation of CEO/Chairperson roles; they do not support outside directors-financial performance linkage. With regard to resource dependence theory, the findings suggest that gender diversity has a positive impact on financial performance. Furthermore, the findings do not support an association between financial performance and board size, PhD qualification, and foreign directors. Theoretical and Practical Implications - The study contributes to the understanding of board-performance link and provides academic evidence to policy makers in Tanzania for current and future governance reforms. Originality/value - The findings contribute to the literature by providing new and original insights that, within a developing setting, extend current understanding of the association between corporate governance and financial performance. This is predicated, also, on the use of uncommon mixed methods approach.

Big data in humanitarian supply chain networks: a resource dependence perspective

Abstract: Humanitarian operations in developing world settings present a particularly rich opportunity for examining the use of big data analytics. Focal non-governmental organizations (NGOs) often synchronize the delivery of services in a supply chain fashion by aligning recipient community needs with resources from various stakeholders (nodes). In this research, we develop a resource dependence model connecting big data analytics to superior humanitarian outcomes by means of a case study (qualitative) of twelve humanitarian value streams. Specifically, we identify the nodes in the network that can exert power on the focal NGOs based upon the respective resources being provided to ensure that sufficient big data is being created. In addition, we are able to identify how the type of data attribute, i.e., volume, velocity, veracity, value, and variety, relates to different forms of humanitarian interventions (e.g., education, healthcare, land reform, disaster relief, etc.). Finally, we identify how the various types of data attributes affect humanitarian outcomes in terms of deliverables, lead-times, cost, and propagation. This research presents evidence of important linkages between the developmental body of knowledge and that of resource dependence theory (RDT) and big data analytics. In addition, we are able to generalize RDT assumptions from the multi-tiered supply chains to distributed networks. The prescriptive nature of the findings can be used by donor agencies and focal NGOs to design interventions and collect the necessary data to facilitate superior humanitarian outcomes.

Institutional Pressures, Green Supply Chain Management Practices on Environmental and Economic Performance: A Two Theory View

Abstract: The adoption of green practices within and outside organizational boundaries is imperative to ascertain environmental and economic performance goals. This article examined whether internal and external green supply chain management (GSCM) practices have the same or different kinds of regulatory, market, or competitive pressures. We employed institutional theory to identify different kinds of pressures, and resource dependence theory to explore the impact of internal and external GSCM practices on performance. An empirical study was conducted by collecting data through a structured questionnaire administered in Pakistan to the executives in the manufacturing industry. A total of 207 responses were used for data analysis by employing the partial least squares structural equation modeling (PLS-SEM) method. Normative pressures were found to be the most significant in both internal and external GSCM practices, while coercive and mimetic pressures positively affected internal and external GSCM practices, respectively. Internal GSCM practices proved to be more significant in improving environmental performance, and also had a substantial impact on external GSCM practices. In contrast, External GSCM practices had a significant positive effect on economic performance, while environmental performance also contributed to improving economic performance. The theoretical and managerial implications are discussed for academics, policymakers, and industry practitioners.

Operational Resource Theory of Continuous-Variable Nonclassicality

Abstract: A new theoretical framework for studying nonclassicality provides a scheme for understanding this resource in quantum optics and describes quantum technologies in which it may be useful.

Firm-level determinants of political CSR in emerging economies: evidence from India

Abstract: Multinational companies (MNCs) frequently adopt corporate social responsibility (CSR) activities that are aimed at providing ‘public goods’ and influencing the government in policymaking. Such political CSR (PCSR) activities have been determined to increase MNCs’ socio-political legitimacy and to be useful in building relationships with the state and other key external stakeholders. Although research on MNCs’ PCSR within the context of emerging economies is gaining momentum, only a limited number of studies have examined the firm-level variables that affect the extent to which MNCs’ subsidiaries in emerging economies pursue PCSR. Using insights from resource dependence theory, institutional theory, and the social capital literature, we argue that MNCs’ subsidiaries that are critically dependent on local resources, have greater ties to managers of related businesses and to policymakers, and that those that are interdependent on the MNCs’ headquarters and other foreign subsidiaries, are more likely to be involved in PCSR. We obtain support for our hypotheses using a sample of 105 subsidiaries of foreign firms that operate in India. Our findings enhance our understanding of the factors that determine MNCs’ political CSR in emerging economies.

International Political Risk Management: Perspectives, Approaches and Emerging Agendas

Abstract: This paper reviews the extant and emerging perspectives on, and approaches to, political risk management, particularly in the context of foreign direct investment. The authors identify and classify the various theoretical lenses in the domain of political risk management, and suggest a future research agenda. The paper contributes by conceptually categorizing and mapping the extant research onto three approaches to the management of political risk. Through conducting a narrative literature review, the authors suggest three theoretical perspectives on political risk management: institutions; resources and capabilities; and resource dependence. They argue that the institutions approach to political risk management is reactive, responding to external stimuli, whereas the resources- and capabilities-based approach is proactive, preparing and acting in anticipation. The resource dependence domain offers an intermediate approach – the active management of political risk. The authors also suggest that the effectiveness of the domains’ approaches may vary across different national contexts.

Fit for the Task: Complementarity, Asymmetry, and Partner Selection in Alliances

Abstract: Most existing theories of relationship formation imply that organizations establish ties to procure complementary resources, and that doing so adroitly generates relational rents. Although this entails a responsibility for organizations to recognize and harness complementarity, most theories struggle with ambiguity around the concept of resource complementarity, neglect its power implications, and rely on rules of thumb that assign no role to managers’ intentions. To explain the formation of ties that successfully combine critical resources, we propose that a positive interplay among resources exists only insofar as organizations use task requirements to guide their combination. As such, a well-matched tie is one that manages task resource interdependence while offsetting imbalances in task-related resources. We test our theory on project-based, interorganizational partnerships for public construction in Italy. We find that (1) the probability of tie formation increases with the quality of the match betwe...

The Influence of Entrepreneurship and Social Networks on Economic Growth—From a Sustainable Innovation Perspective

Abstract: A large body of evidence demonstrates the key role played by entrepreneurship in promoting economic growth. However, the potential connections between entrepreneurship, social networking, and economic development still require in-depth exploration and discussion. This paper first establishes a theoretical framework combining entrepreneurship capital theory, resource dependence theory and transaction cost theory, then examines the possible associations between entrepreneurship, social networks, and economic growth based on the dynamic panel data model. To achieve the research objectives, the investigators collected data spanning the period between 2007 and 2016 from 31 provinces and cities in China. The authors adopted the enterprise employment rate as a measure of entrepreneurship and used the information sharing rate to assess social networks, which were then both introduced into the economic growth model. Additionally, by using the system of generalized method of moments (GMM) estimation, this article measures the influence of entrepreneurship and social networks on the economic growth of a local area. The empirical results reveal that both entrepreneurship and social networking significantly promote regional economic growth in China. Further, the effect of entrepreneurship is significantly enhanced after introducing the joint effects of entrepreneurship and social network. The findings also expound that entrepreneurship of the eastern zone and social networking of the central section exhibit the strongest potential for economic development of the respective areas. Conversely, entrepreneurship may actually hinder the economic advancement of the central areas of China. Corresponding to the findings, the researchers suggest that it is necessary to devise flexible policies for heterogeneous entrepreneurial environments and to appropriately utilize interpersonal networks to maximize the efficiency of the outputs of economic activity, which are likely to strengthen the role of entrepreneurship and social networks in contemporary economic and business milieu.

Board involvement in corporate sustainability reporting: evidence from Sri Lanka

Abstract: The purpose of this paper is to explore the role played by the board of directors in corporate sustainability (CS) disclosure within the Asian context in which sustainability reporting (SR) is an emerging phenomenon.,Data are collected from a sample of 100 listed Sri Lankan companies over a period of four years (2012-2016), representing practically all the business sectors. This study draws on both agency and resource dependence theories, while binary logistic regression is performed for the data analysis.,The results point out that firms that follow a sustainability disclosure policy have larger boards, a higher proportion of independent directors and more female directors. Contrary to certain common assumptions, firms that practice sustainability disclosure are not influenced by dual leadership, board ethnicity and board ownership. This study helps firms to understand whether their boards can influence the sustainability disclosure choice or not and further, to validate the appropriateness of the agency theory and the resource dependence theory for examining issues of this nature.,This study contributes significantly to the extant literature on this subject by broadening the geographical coverage, which has generally been limited to the West in corporate disclosure studies.

Manu Militari: The Institutional Contingencies of Stakeholder Relationships on Entrepreneurial Performance

Abstract: This study examines how ventures can leverage relationships with heterogeneous government stakeholders to enhance survival in different institutional environments. We consider how the distinct resources provided from venture ties to military and political actors represent complementary strategic assets that differentially influence performance in varying political and economic environments as well as under conditions of violence and political conflict. Empirically, we examine the effect of these respective stakeholder relationships on new venture survival across 10 countries over a 65-year period. By distinguishing between the resources obtained through relationships with different types of government stakeholders and showing how the value of these resources varies in different contexts, this study contributes to nonmarket strategy and stakeholder management research and highlights the need for studies to take a pluralistic view of government stakeholders. This paper also presents managerial insights to f...

A Field Study on Small Accounting Firm Membership in Associations and Networks: Implications for Audit Quality

Abstract: Small accounting firms represent important participants in the audit market, yet details of how they operate and develop competencies remain unexplored. Small firms often join forces through accounting associations and networks (AANs), which may help them overcome significant challenges commonly faced by smaller firms. We interview 37 partners from 18 firms representing nine AANs to examine how small firms leverage their AAN membership and to understand the related implications for audit quality. Our findings indicate that small firms acquire needed resources and enhance their market legitimacy through AAN membership; however, the nature and extent to which they do so varies by AAN type. Importantly, we also find that the majority of respondents perceive AAN resources, especially access to expertise, as critical to their firms' audit quality. Our research, informed by a theoretical lens based on resource dependence and legitimacy, enriches existing auditing literature, provides a new perspective ...

The effects of politically connected outside directors on firm performance: Evidence from Korean chaebol firms

Abstract: Manuscript Type Empirical Research Question/Issue While most prior studies on the value of political connections focus on the political connections of controlling shareholders and top management, we examine the performance impact of appointing politically connected outside directors (PCODs) in Korean chaebol firms. Research Findings/Insights Using a manually collected sample of PCODs in Korean chaebol firms, we find that larger, high-performing, less volatile firms with a larger board and higher divergence between voting rights and cash flow rights are more likely to appoint PCODs in the next year. We also report that firms with a high number of PCODs exhibit better operating performance and enjoy lower risk. On the other hand, we find evidence of weak monitoring ability by PCODs. Overall, we suggest that the number of PCODs correlates positively with firm performance, and that the value effect of PCODs increases with the importance of internal trade among group affiliates, the existence of inside directorship by controlling shareholders, and potential settlements from pending litigation. We further differentiate between PCODs and find that former government officials as PCODs drive our findings. Theoretical/Academic Implications This study contributes to corporate governance knowledge by revealing the relationship between PCODs and firm performance via an empirical inquiry into the role of PCODs on the board. As the controlling shareholders of Korean chaebol firms obtain greater private benefits of control, and such firms may face active government involvement in curbing controlling shareholders’ rent extraction, we examine the role and effects of PCODs in these situations and find evidence of the PCOD's value-enhancing effect. We also complement and extend prior studies by providing more direct mechanisms through which PCODs can add value above and beyond firms’ ownership structure. Additionally, we expand the concept of political connection by analyzing outside directors’ human and social capital from the resource dependence theory perspective. Our attempt complements prior research's exclusive focus on connections of large shareholders or top executives to political parties and is more comprehensive in illustrating the firm's dynamic business environment. Practitioner/Policy Implications The results of our study are potentially useful to regulators, who will benefit from an understanding of how the presence of PCODs on boards affects firm performance. In particular, our results suggest that in countries where recent reforms aim to improve minority investor protection and market confidence, regulators should consider the composition of outside directors as well as explicit board independence. The results of our study may also be useful to investors, financial analysts, and auditors, as they highlight the importance of considering specific features of board composition when assessing firms’ future operating performance and risk mechanisms.

An introductory review of the resource theory approach to thermodynamics

Abstract: I give a self-contained introduction to the resource theory approach to quantum thermodynamics. I will introduce in an elementary manner the technical machinery necessary to unpack and prove the core statements of the theory. The topics covered include the so-called `many second laws of thermodynamics', thermo-majorisation and symmetry constraints on the evolution of quantum coherence. Among the elementary applications, I explicitly work out the bounds on deterministic work extraction and formation, discuss the complete solution of the theory for a single qubit and present the irreversibility of coherence transfers. The aim is to facilitate the task of those researchers interested in engaging and contributing to this topic, presenting scope and motivation of its core assumptions and discussing the relation between the resource theory and complementary approaches.

The effects of corporate environmental disclosure on environmental innovation from stakeholder perspectives

Abstract: Based on legitimacy theory and resource dependence theory, using 111 listed companies among China’s typically high pollution-emitting listed corporations, research into the effects of environmental disclosure on environmental innovation is undertaken. From the perspective of stakeholders, we analyse the moderating effects of different proportions of institutional investor holdings and types of enterprises on the relationship between environmental disclosure and environmental innovation. The results indicate that corporate environmental disclosure has a positive role in promoting environmental innovation; the proportion of institutional investor holdings has a positive moderating effect between environmental disclosure and environmental innovation. However, there is no significant difference between state-owned enterprises and private enterprises in terms of the effect of the environmental disclosure on environmental innovation, which possibly arises because both types of enterprises make full use ...

The Adoption of Chief Diversity Officers among S&P 500 Firms: Institutional, Resource Dependence, and Upper Echelons Accounts

Abstract: The importance of workforce diversity has become a salient management concern given that demographic minorities comprise key sources of the workforce and consumers. As a result, some firms created chief diversity officer (CDO) positions to manage workforce diversity. This study takes a multitheoretic approach, drawing upon institutional, resource dependence, and upper echelons theories to explain firms' adoptions of this key position. Using Cox event history analyses based on a sample of S&P 500 firms, we find that, from an institutional theory perspective, firms are more likely to adopt CDOs when they are headquartered in legalized gay marriage states and the accumulative number of industry CDO adoptions is high. From a resource dependence perspective, we find that firm innovation intensity, diversification levels, transient institutional ownership, and industry female and African American employment bases can predict firms' adoptions of CDO positions. From an upper echelons explanation, we find that female top management team representation is positively associated with firms' adoptions of CDO positions.

Trends on the relationship between board size and financial and reputational corporate performance: The Colombian case

Abstract: Purpose The purpose of this paper is to investigate the relationship between board size (B-SIZE) and financial and reputational corporate performance in top companies ranked by the Business Monitor of Corporate Reputation – MERCO in Colombia. Design/methodology/approach This paper conducts correlations and cluster analysis in order to classify firms based on performance and control variables, using a sectional sample of 84 large companies in Colombia over the period 2008-2012. Findings This research founds that large boards are associated with high performance on corporate reputation, as stated by the resource dependence theory, and a low-financial performance, as predicted by the agency theory. However, the results indicate that there is no relation between financial and reputational performance. Research limitations/implications This research considered only large companies listed by MERCO. Therefore, the results can only be generalized for top firms in Colombia according to this list. However, results add empirical evidence to theoretical debate between B-SIZE and firm performance considering financial and reputational indicators. Practical implications According to the OECD manual of good corporate governance practices, the optimal B-SIZE has between five to nine core members. The board structure has a direct impact over the firm’s financial and reputational performance and must be carefully analyzed by shareholders to balance the size according to expected results and firm’s features like family ownership, exportation activities and norms of stock markets. Originality/value This paper contributes to the existing literature on the relationship between B-SIZE and corporate performance with the evaluation of financial and reputational results for the case of an emerging economy. In Latin America, this analysis must go beyond OECD recommendations, and shall consider the context of an emerging country based on empirical evidence.