Showing papers on "Resource dependence theory published in 2021"

Environmental performance, sustainability, governance and financial performance: Evidence from heavily polluting industries in China

Abstract: This study seeks to contribute to the existing business strategy and the environment literature by examining the effect of governance structures on Chinese firms' environmental performance, and consequently ascertain the extent to which the financial performance–environmental performance nexus is moderated by governance mechanisms. Using a sample of Chinese companies from heavily polluting industries over a 5‐year period, our baseline findings suggest that, on average, board size and governing board meetings are positively associated with Chinese firms' environmental performance, whilst board independence and gender diversity have positive, but insignificant association with firms' environmental performance. Our evidence suggests further that the examined internal governance mechanisms have a mixed moderating effect on the link between financial performance and environmental performance. Our findings have important implications for company executives, environmental activists, policy‐makers, and regulators. Our results support insights drawn from agency, resource dependence, stakeholder, and legitimacy theories.

Achieving environmental sustainability through green transformational leadership policy: Can green team resilience help?

Abstract: The race to gain competitive advantage through the formulation of a sustainable business strategy is key for the survival in the global business sphere. Even more importantly is the quest to deploy an effective green strategy to combat the numerous negative impact industrialization has on the environment. Researches pointed out the role of leaders and stakeholder's engagement in bringing about reform. This research focuses on how to build a robust psychological capital within an organization through the leader's transformative ability in combating environmental issues. This is necessary because research related to green transformational leadership and the effect on green team resilience has not been considered in literature. Drawing from the combination of three theories; broaden‐and‐build theory, job demand–resource theory, and conservation of resource theory, this study contributes to the extant literature by testing the effect of green transformational leadership via the mediating role of green work engagement to green team resilience. Using Amos 20 version to analyze 351 questionnaires that were collected from employees in four and five star hotels in Turkey, the result reviews that green transformational leadership has a positive effect on green work engagement and green team resilience, and green work engagement fully mediates the relationship between the variables. The theoretical and practical implications are discussed.

Knowledge frontiers and boundaries in entrepreneurship research

Abstract: While the disruptive potential of knowledge has been receiving growing attention in small business economics and entrepreneurship research and application over the last decade, its boundaries and frontiers, including technological, spatial, institutional, cognitive, and cultural has not been fully explored. Here we present some reflections and a collection of papers on the role of knowledge investment across different cultural, institutional, geographical, and industrial contexts for this emerging area in entrepreneurship and management research. While being careful of the swift changes in knowledge creation, dissemination, and testing in a digital age, geography of knowledge diffusion, knowledge embeddedness into industries and places, skills, and strategies continue to change the way firms assimilate, absorb, create, and transfer knowledge. In this special issue, we extend our knowledge boundaries through knowledge collaboration theory, resource theory, open innovation theory, knowledge and creativity spillover of entrepreneurship theory, economic geography, and creative class and institutional theories. We give researchers and practitioners future directions for a very relevant and fast-growing area of entrepreneurship and small business research.

Corporate governance and firm performance: empirical evidence from Jordan

Abstract: This study aims to assess the effect of director board and audit committee attributes and ownership structure on firm performance. In general, resource dependency and agency theories have underlined the superior performance of firms equipped with stronger Corporate Governance (CG) versus those of deficient governance. Concurrently, the study delineated the provisions of ownership structure provision, specifically foreign ownership and institutional ownerships, thus describing the component denoting the structural significance in explicating firm performance.,The current study implemented an empirical approach involving the construction of extensive CG measures thus, subjected to 81 non-financial firms listed on the Amman Stock Exchange spanning the period of 2014–2018.,The current study identified the positive and significant relationship between the board of directors and audit committee characteristics with the firm performance measures tested, namely, return on equity (ROE) and Tobin’s Q. In terms of ownership structure, both foreign and institutional ownerships yielded a significant and positive relationship with ROE. Meanwhile, Tobin’s Q led to an insignificant and negative relationship between both ownership types and firm performance measures.,The analytical outcomes substantiate the possibility of enhanced performance shown by growing global firms because of the implementation of CG mechanisms, specifically because of the practices resulting in minimised agency costs.,The current study offers novel evidence detailing the impact of CG effectiveness towards performance and its implementation in emerging markets following the minimal amount of scholarly efforts on the topic. It is a timely contribution towards the current understanding of the relationship linking governance and performance for the purpose of ensuring the adoption and imposition of a strong corporate governance code by the government.

Resource Dependence, Uncertainty, and the Allocation of Corporate Political Activity across Multiple Jurisdictions

Abstract: This paper contributes to the resource dependence theory and corporate political activity literatures by distinguishing dependence from uncertainty and explaining how two different types of uncerta...

Political ties and corporate performance: why efficiency matters?

Abstract: The purpose of this paper is to examine and explain the complex interrelationships which influence the performance of politically connected firms to create value for their providers of finance and other stakeholders. In doing so, it examines the interrelationships between efficiency and delivering on corporate performance of a firm with political ties.,The authors gathered the literature from the Scopus website. They reviewed the literature of 58 manuscripts about the efficiency and performance of politically connected firms.,The research finds that the better quality of efficiency of politically connected firms is positively related to the corporate performance of politically connected firms. The authors’ theoretical findings corroborate the political theory, agency theory, stakeholder theory, resource dependency theory and stewardship theory. These theories prove that political connections have an impact on firm performance as a politician reinforces the efficacy. To better understand the effect of political connections on solid performance due to efficiency, this study classifies various efficiencies and links them with political ties.,Several avenues of research are suggested to examine further the interrelationships identified.,The authors’ conceptual findings are valuable for institutional investors, policymakers and stakeholders. To sum up, all theoretical shreds of evidence prove that politically connected firms can enhance performance via efficiency.,The paper conceptualizes the efficiency and performance interrelationships of politically connected firms. The extant literature comparison allows an assessment of the extent to which different efficiency contexts lead to differences in performance.

Regulated Dependence: Platform Workers’ Responses to New Forms of Organizing

Abstract: Platform economy organizations often resolve fundamental organizing problems with novel solutions, thereby transforming their relationship with core stakeholders including regulators and workers. Despite the integral role played by platform workers, research on the interplay between platforms and regulatory conditions has yet to take workers into consideration. We investigate how Uber drivers engage with novel forms of organizing across different regulatory structures. Drawing on insights from resource dependence theory, we conduct a topic modeling analysis of drivers’ online forum posts and a complementary qualitative analysis of triangulated data sources. Our findings reveal that workers do not always succumb to organizing solutions imposed upon them; they also actively oppose or supplement them. Importantly, platform workers’ responses vary with the local regulatory structure, which affects the mutual dependency and balance of power between platforms and workers. We discuss implications for the literature on new forms of organizing and the platform economy.

The influence of corporate governance structure on sustainability reporting in Malaysia

Abstract: Purpose – Following the introduction of the revised Malaysian Code on Corporate Governance in 2012 (MCCG 2012), this study aims to investigate the influence of corporate governance structure on the quality of sustainability reporting from the perspectives of agency theory and resource dependence theory. Design/methodology/approach – Based on an analysis of 126 firms’ annual reports for the year ended 2010 and 2014, this study analyses sustainability reporting quality before the introduction of MCCG, 2012 (year ended 2010) and after (year ended 2014). Findings – The findings of the study show that there was a significant increase in the quality of sustainability reporting from 2010 to 2014. Results from multiple regression analyses indicate that the number of sustainability-related training attended by the board of directors and the percentage of directors with sustainability-related experience have a significant impact on the quality of sustainability reporting. Practical implications – Observations from the study provide useful insights into the importance of the appointment of directors with sustainability-related experience as part of the criteria for directors’ appointment. Moreover, the board of directors is encouraged to attend sustainability-related training to help firms improve sustainability practices and reporting. Social implications – The increase in the quality of sustainability reporting indicates that companies are committed in ensuring that environmental degradation is put at the minimum level if not eliminated. It appears that companies are embracing the concept of sustainability reporting, and hence, contributing to improving and enhancing social well-being. Originality/value – This study contributes to the discussion of both internal mechanisms (board independence and board capital) and external mechanisms (compliance to the code on corporate governance) of corporate governance structure on the quality of sustainability reporting. The findings can be used to identify necessary mechanisms that should be enhanced to strengthen the practice of sustainability reporting.

Board’s financial expertise and corporate social responsibility disclosure in China

Abstract: This study aims to investigate the impact of the board’s financial expertise (BFE) on corporate social responsibility (CSR) disclosure in China.,Using a sample of Chinese listed firms from 2009-2016 (making 3272 firm-year observations), this study uses the generalized method of moments (GMM) and panel data estimation techniques.,Using the resource dependence theory, the findings of this study are twofold. First, the is positively associated with the disclosure level of CSR. Second, this positive impact is more pronounced in firms with female CEO and state ownership. The findings are robust to the potential issues of endogeneity and sensitivity analyses.,Practically, the findings hold value for the senior management of Chinese firms to ensure the presence of financial experts in boards to yield both financial and non-financial outcomes.,This study points out how financial experts on boards influence the societal outcomes via disclosure of CSR. Financial experts encourage participation in social and sustainable practices which creates a positive image of the firm not only in the eyes of society but also for investors.,This study is unique and contributes to the extant literature by examining the impact of a new attribute, i.e. the BFE on the level of CSR disclosure in China.

Exploring the Trade-Offs Local Governments Make in the Pursuit of Economic Growth and Equity:

Abstract: Economic development at the municipal level often necessitates that local governments make trade-offs between firm- and locality-based strategies. In recent decades, economic development researcher...

Unpacking Firm External Dependence: How Government Contract Dependence Affects Firm Investments and Market Performance

Abstract: We advance resource dependence theory (RDT) by answering calls for theorizing on both how being dependent on external entities for resources affects firms and the heterogeneous nature of such depen...

Additive manufacturing in the apparel supply chain — impact on supply chain governance and social sustainability

Abstract: Focusing on the apparel industry, this study extends current knowledge on how additive manufacturing (AM) may impact global supply chains regarding structures of interorganizational governance and the industry's social-sustainability issues.,Following an exploratory research design, two consecutive Delphi studies, with three survey rounds each, were conducted to carve out future industry scenarios and assess AM's impact on supply chain governance and social sustainability.,The implementation of AM is posited to reinforce existing supply chain governance structures that are dominated by powerful apparel retailers. Retailers are expected to use the increased production speed and heightened market competition to enforce faster fashion cycles and lower purchasing prices, providing a grim outlook for future working conditions at the production stage.,Against the common narrative that technological progress increases societal well-being, this study finds that new digital technologies may, in fact, amplify rather than improve existing social-sustainability issues in contemporary production systems.,This article contributes to the nascent research field of AM's supply chain impact as one of the first empirical studies to analyze how AM introduction may impact on interorganizational governance while specifically addressing potential social-sustainability implications. The developed propositions relate to and extend the resource dependence and stakeholder perspectives on governance and social sustainability in supply chains. For managers, our results enrich the discussion about the potential use of AM beyond operational viability to include considerations on the wider implications for supply chains and the prevailing working conditions within them.

Impacts of Firm Performance on Corporate Social Responsibility Practices: The Mediation Role of Corporate Governance in Ethiopia Corporate Business

Abstract: In today’s globalized economy, the corporate company faces ever-increasing competitive and social pressures. This paper aims to identify the impacts of firms’ performance on corporate social responsibility practices using the mediating roles of corporate governance evidence from Ethiopia’s corporate business. The impacts of firms’ performance on CSR and corporate governance as a mediator variable were studied using a sample of TIRET corporate companies, in the Amhara region, Ethiopia. The structural equation model and multiple regression analysis were estimated and tested using 21 corporate companies. The derived model reveals how corporate governance mediates the favorable relationship between CSR and firm performance. The result indicates that a firm’s performance is the most significant influencing factor on CSR among the impacts examined in this study. Corporate governance has a positive role in serving as a legitimacy source for CSR practice. This study discusses the significance of results-based resource theory and presents the conclusion and implications. To solve the gaps in firm performance, return on asset, debts on capital structure, and governance, the corporate firms should identify unproductive enterprises and outsource non-core values. To overcome the existed inefficiency difficulties, this study proposed that corporate enterprises should be restructured, rebranded, reconsider their business models, and acquire technology-based firms. This paper contributes to CSR literature in the context of emerging economies. Firms, policymakers, and practitioners may take steps to improve CSR practice. In general, we conclude that in Ethiopia, including in the Amhara region, socially responsible corporate enterprises are more likely to be successful, and vice versa.

A Natural Resource Dependence Perspective of the Firm: How and Why Firms Manage Natural Resource Scarcity:

Abstract: Although natural resource scarcity is a pressing issue for many organizations, it has received little attention in management research. Drawing on resource dependence theory, this article theorizes...

Linking Employee Resilience with Organizational Resilience: The Roles of Coping Mechanism and Managerial Resilience

Abstract: Background: Environmental uncertainty has become the normal surviving and development environment for organizations. Resilience is the key to manage the crisis and abrupt crush, and the relationship between employee resilience and organizational resilience still needs to be explored in Chinese context. The study is to uncover the black box between employee resilience and organizational resilience. Methods: Based on the conservation of resource theory, this study introduced managerial resilience, problem-focused coping and emotion-focused coping into the relational mechanism between employee resilience and organizational resilience. The study adopted structural equations, bootstrapping methods, and analyzed 329 multi-point employee–manager matching data as the research basis from high-tech industries, service industries, and traditional manufacturing industries. Results: This study demonstrated that employee resilience is positively associated with organizational resilience;The indirect effects of employee resilience on organizational resilience through problem-focused coping and emotion-focused coping were statistically significant;moreover, managerial resilience positively moderated the relation between employee resilience and emotion-focused coping, and it also moderated the indirect effect of employee resilience on organizational resilience through emotion-focused coping. Conclusion: This study adds value to the literature by revealing employee resilience boots problem-focused coping and emotion-focused coping, resulting in more or less organizational resilience in the context of Chinese enterprises. It is suggested that in the daily management of the organization, we should pay more attention to cultivate and develop employee resilience to improve organizational resilience.

The liabilities of foreign institutional ownership: Managing political dependence through corporate political spending

Abstract: Research Summary The benefits of foreign institutional ownership (FIO) have been amply researched, but there are also potential downsides to such ownership. High FIO can subject a firm to heightened regulatory scrutiny and compliance, increasing its political dependence. Drawing on resource dependence theory, we argue that firms can manage the political dependence that arises from FIO by engaging in corporate political spending (CPS). We derive two moderating conditions from our theoretical argument, positing that the strength of the positive relationship between FIO and CPS hinges on the intensity of a firm's government contracting and on the political sensitivity of the industry. Our study advances strategic ownership research by highlighting that U.S. firms may need to manage the potential liabilities associated with FIO through nonmarket strategy. Managerial Summary Research suggests that firms can reap many benefits from equity investments made by foreign institutional investors. However, such investments may also have potential downsides. We posit that high levels of FIO may subject a firm to increased political and regulatory scrutiny, and that firms can manage this increased exposure to government by engaging in corporate political activities that allow them to monitor and influence the political landscape. To explore this question, we analyzed a large sample of publicly traded U.S. firms and find empirical support for our arguments. Our study highlights an unintended “liability” of FIO that firm executives should be aware of and has practical implications for how firms manage their investors and allocate resources between market and nonmarket strategies.

Curse or blessing: how does natural resource dependence affect city-level economic development in China?

Abstract: Based on the ‘resource curse’ theory, this study uses panel data for 256 prefecture‐level cities in China from 2003 to 2016 to test the relationship and mechanism between natural resource dependence and economic development. The panel model and instrumental variable regression results show that natural resources generally promote economic development, but for 109 resource‐based cities, the influence of natural resources on economic development seems quite different. The panel threshold model shows that in the resource‐based cities, (i) resources have a ‘blessing effect’ on economic development during economic prosperity (GDP growth rate is greater than 12.1 per cent); (ii) the relationship is not statistically significant when the GDP growth rate is between 5 per cent and 12.1 per cent; and (iii) when the GDP growth rate is lower than 5 per cent, natural resources have a ‘curse effect’ on economic development. Furthermore, the results of the mediation effect model show that the mediation effect of industrial diversification on the relationship between resource dependence and economic development suppresses the promotion of natural resource on economy. An excessive concentration of resource industries has a crowding‐out effect on non‐resource industries in resource‐based cities, which reduces the level of industrial diversification and is not conducive to economic development.

Potential for, and drivers of, private voluntary initiatives for the decarbonisation of short sea shipping: evidence from a Swedish ferry line

Abstract: The aim of this paper is to analyse shipping firms’ reactions to environmental challenges and identify how significant reductions in energy consumption and air emissions can come about by implementing a variety of voluntary initiatives. The paper focuses on the various sustainability initiatives implemented by the Swedish short sea shipping operator, Stena Line, either on a purely voluntary basis as part of their corporate social responsibility (CSR) strategy or as their chosen route for compliance with regulations. A conceptual model is developed based on stakeholder theory, the theory of planned behaviour and resource dependence theory to understand the main drivers of the firm’s adoption of sustainability initiatives and the factors affecting the integration of CSR in maritime companies. According to our findings, the company operates within a strongly enforced regulatory environmental framework and needs to exceed this framework to differentiate its service and strengthen its relationships with its customers by addressing their social and environmental concerns. As the firm’s competitive strategy focuses on service differentiation, a large pool of complementary resources is available for CSR and the implementation of sustainability practices. The results of this paper bring new insights to the potential of local private voluntary initiatives for the reduction of maritime air emissions. These include the provision of onshore power supply, the conversion of vessels to use methanol, ferry electrification, the construction of larger RoPax vessels and the implementation of an energy-saving program that focuses on crew involvement and continuous training. The environmental outcomes derived from a combination of local operational and technical energy efficiency measures are found to be significant and can contribute to the efforts for the achievement of sustainable maritime transport undertaken by international and regional organisations. The main barriers for the adoption of voluntary sustainability initiatives in the maritime sector are economic and technological. To encourage the wider adoption of these initiatives, the provision of economic incentives at national or regional level is crucial, as such initiatives usually imply high initial installation costs that should be somehow compensated for both vessels and terminals.

A resource theory of quantum measurements

Abstract: Resource theories are broad frameworks that capture how useful objects are in performing specific tasks. In this paperwe devise a formal resource theory quantum measurements, focusing on the ability of a measurement to acquire information. The objects of the theory are equivalence classes of positive operatorvalued measures, and the free transformations are changes to a measurement device that can only deteriorate its ability to report information about a physical system. We show that catalysis and purification, protocols that are possible in other resource theories, are impossible in our resource theory for quantum measurements. Standard measures of information gain are shown to be resource monotones, and the resource theory is applied to the task of quantum state discrimination.

Corporate Governance Mechanisms and Firm Performance in Saudi Arabia

Abstract: This paper examines the impact of corporate governance mechanisms including board size, independence, and meeting frequency, audit committee size and meeting frequency, CEO duality and ownership concentration on the operational, financial and market performance of Saudi listed firms using a contingent theoretical-based framework drawing on agency theory, stewardship theory and resource dependence theory. This study examines 210 listed Saudi Stock Exchange firms over the timeframe 2017 to 2019. The paper applies both a manual content and regression analysis approach. The results show that firm performance deteriorates with board size and independence, audit committee and meeting frequency, and the presence of CEO role duality, while performance improves with board meeting frequency and ownership concentration. Thus, Saudi firms should respond by maintaining smaller boards and more frequent meetings, keeping the Chair and CEO roles separate, and maintaining smaller audit committees with more focused meetings. Further, the appointment of independent directors only makes a meaningful contribution to firm performance where they are truly independent. Finally, more concentrated ownership tends to encourage better firm performance due to the regime of monitoring and discipline concomitant with more powerful shareholders. The implications of this paper are threefold. First, the implementation by Saudi Arabia of the latest corporate governance regulations and IFRS adoption almost certainly impact firm performance markedly. Second, corporate governance regulations should recognize the role of more frequent board meetings and more concentrated ownership in enhancing corporate performance. Third, stakeholders should apply pressure on investee firms to maintain smaller boards, engage genuinely independent directors, separate the role of Chairman and CEO, and maintain smaller audit committees with fewer and more effective meetings. The results should help corporate boards when deciding on the best corporate governance mechanisms to enhance firm performance. Further, the study should provide policy makers with a better understanding of the corporate governance structures required to promote better performance by drawing on existing theories and the empirical modelling, in an emerging economy setting such as Saudi Arabia, a new and broader data set, thereby informing better future policy and protecting shareholders’ interests.