Showing papers on "Resource dependence theory published in 2023"

Firm's biodiversity initiatives disclosure and board gender diversity: A multi‐country analysis of corporations operating in Europe

Abstract: Environmental practices, in particular biodiversity protection, are crucial for a business to maintain its market valuation and social license. Grounded in resource dependency theory and upper echelon theory, we test the link between board gender diversity and firm's biodiversity initiatives disclosure. Also, we investigate potential moderating variables such as eco-innovation, resource consumption reduction, and firm's corporate social responsibility (CSR) awards that could strengthen the link between board gender diversity and corporate biodiversity initiatives disclosure. To empirically test our study's framework, we rely on a sample of non-financial firms operating in 13 European countries between 2002 and 2021. Our estimation results show that women's presence on boards is positively associated with better disclosure of biodiversity conservation initiatives of a firm. Also, our study suggests that firm's eco-innovation, resource usage, and CSR awards are important and moderate the board gender diversity and biodiversity conservation disclosure nexus. Our results hold to a battery of sensitivity analyses.

Does board structure drive Sustainable Development Goals disclosure? Evidence from an emerging market

Abstract: The study investigates to which extent corporate board characteristics influence the disclosure of Sustainable Development Goals (SDGs) in Omani-listed financial institutions. Using hand-collected data for 34 Omani financial institutions listed on the Muscat Stock Exchange for the period between 2016 and 2020, the study applies multivariate analysis to examine the association between corporate board characteristics and SDGs disclosure following Al Lawati and Hussainey’s (2022) method in measuring SDG variables. Drawing from agency theory and resource dependence theory, our results showed that the independence and financial expertise of the corporate board promote better disclosure of SDGs. On the other hand, gender and nationality diversity of the board were found to be negatively associated with the disclosure of the SDGs. Our paper contributes to the growing literature by being the first study to examine the extent to which corporate board characteristics drive SDGs disclosure in one of the emerging markets. In addition, in our study, we employ the resource dependence theory with the agency theory to investigate our research hypotheses in order to capture the full practice of the SDGs disclosure. The study implies that the characteristics of the corporate board are one of the main determinants of SDGs disclosure in emerging markets. Furthermore, not all boards behave the same with regard to the disclosure of the SDGs, and this behavior is determined by its characteristics. The study recommends that a sustainability committee may be initiated to enhance the disclosure of the SDGs in Omani financial institutions.

Development of Ecosystem for Corporate Green Innovation: Resource Dependency Theory Perspective

Abstract: Although research on green innovation has increased dramatically in recent years, little is known about the system mechanisms for the innovation. Grounded in the resource dependency theory (RDT) and national innovation system (NIS) literature, this study examines the ecosystem in promoting green innovation from both theoretical and empirical perspectives. This study constructs a Nash-Cournot equilibrium to address the effects of national green innovation systems on corporate green innovation. Using data of 2136 A-share listed enterprises, 31 provincial-level R&D data, and 329 prefectural-level government annual work reports in China, this study finds that corporate collaboration, government subsidies, regional university R&D intensity, long-term credit, and government attention enhance the number of green innovation patents and patent diversity. Government attention strengthens the positive effects of corporate R&D cooperation, government subsidies, R&D intensity of regional research institutions, and long-term credit on the number of green innovation patents.

Research on the Impact of Green Innovation Network Embeddedness on Corporate Environmental Responsibility

Abstract: In the process of China’s economic transformation, enterprises urgently need to use green innovation networks to realize corporate sustainability. Based on resource-based theory, this study explores the internal mechanism and boundary conditions of green innovation network embeddedness that affect corporate environmental responsibility. This paper conducts an empirical study based on panel data of listed companies engaged in green innovation in China from 2010 to 2020. Drawing on network embeddedness theory and resource-based theory, we found that relational and structural embeddedness influenced green reputation, which affected corporate environmental responsibility. We also identified the importance of ethical leadership and examined its role in moderating the effect of green innovation network embeddedness. A further investigation revealed that the impact of network embeddedness on corporate environmental responsibility was particularly pronounced in the samples of enterprises with high-level political ties, loose financing restrictions, and nonstate ownership. Our findings highlight the advantages of embedded green innovation networks and offer theoretical references and recommendations for enterprises considering network participation. Enterprises should attach great importance to the network embedding strategy of green innovation for corporate environmental responsibility and actively integrate the concept of green development into network relationship embedding and network structure embedding. Moreover, the relevant government department should provide necessary environment incentive policies according to the enterprise’s development needs, especially for the enterprises with low-level political ties, high financing restrictions, and state ownership.

Imbalanced trade dependence and Chinese firms’ entry mode choices: the moderating effects of state ownership and marketization

Abstract: Purpose Applying resource dependence theory (RDT), this research paper aims to examine the effect of imbalanced trade dependence (ITD) on entry mode choices and how state ownership and marketization each can moderate this effect. Design/methodology/approach Using data on 1,404 foreign projects made by 493 Chinese listed firms during the 2009–2015 period of time, this study applies logit regression to do the statistical analysis. Findings It finds that ITD positively affects the choice of wholly-owned subsidiaries. State ownership and marketization each can moderate this influence. Originality/value It develops the concept of ITD, applies it to examine entry mode choices and lets us better understand the substitutive or complementary relationship between governments and foreign firms as two sources of resources. It helps us better understand some competitive advantages of emerging market firms (EMFs) and the impacts of the state on EMFs’ outward FDI. It contributes to entry mode research by applying RDT to explain how ITD influences entry mode choices and how state ownership and marketization each can moderate this relationship.

Contingent resource-based view of food netchain organization and firm performance: a comprehensive quantitative framework

Abstract: Purpose Much has been written on the effect of fast-moving business environments on organizational and supply chain (SC) management. Yet, empirical findings on the effect of changing external and internal contingencies on today’s globalized agrifood SC networks and performance are still fragmented into different organizational instruments, with some conflicting results remaining unexplained. This study aims to address these deficiencies by providing a comprehensive research framework to investigate how SC external and internal contingencies jointly influence organizational SC network structures and agrifood performance across mutually dependent tiers. Design/methodology/approach Using partial least squares structural equation modeling, the so-called “contingency–netchain–performance” framework, based on contingent resource-based theory and the netchain approach, was empirically tested on data obtained from a standardized survey of 405 artisanal producers and 238 processors in the Nigerian shrimp sector. Findings The results provide statistical evidence that supports the path dependency of firm performance from the interplay of vertical, horizontal and lateral relationships and, primordially, from both external and internal contingencies. The findings show that the contingency paradigm of fit among small-scale food producers and processors cuts across tiers and uncover a tendency to adopt relational governance and tighter network structures that result in an organic organization as the best-fitting structure. Originality/value The paper presents a new research framework that offers comprehensive empirical explanations for the joint influence of SC external and internal contingencies on organizational SC network structures and performance across mutually dependent agrifood tiers. This study’s conceptual, practical and policy implications for SC management provide a nascent and flexible basis on which to identify the best-fitting organizational strategies that maximize firm performance across agrifood SC tiers characterized by changing business environments.

The effects of power imbalance on supply chain sustainability adoption: evidence from the artisanal fishing industry

Abstract: PurposeGrounded on resource dependence theory, the authors explored how power and dependence affect sustainability adoption in an artisanal fishing supply chain (AFSC) in Mexico.Design/methodology/approachAn in-depth longitudinal case study was conducted to identify relationships among fishers, a cooperative and intermediaries using a content analysis of data gathered from a combination of interviews, focus groups, observations, participatory workshops and secondary data.FindingsAs a result of the existing power imbalance among AFSC members, mediated forces (e.g. rewards for intermediary–fishers relationship) were the most prominent observed. In addition, a close and high dependence on resources affecting supply chain sustainability (SCS) adoption was identified. For example, within intermediary–cooperative relationships, a power imbalance caused mostly by financial resource dependence generated a negative impact on economic sustainability related to unfair prices and unfair trade. The results, thus, showed the detrimental influence of intermediaries among AFSC members on SCS adoption.Practical implicationsA greater understanding of power imbalance and dependence can help AFSC members to identify their weaknesses and develop actions to adopt sustainability.Originality/valueUnlike previous research, the authors go beyond the often positive research focus of SCS studies and provide, through the resource dependence theory, a longitudinal view on how power imbalance negatively affects SCS adoption.

The influence of government affiliations on firm product innovation in a dynamic institutional environment: insights from China

Abstract: PurposeBuilding on resource dependence theory and the dynamic institution-based view, this paper examines the influence of government affiliations on firm product innovation in a dynamic institutional environment.Design/methodology/approachUsing unique panel data of Chinese manufacturing firms covering a period of 12 years (1998–2009) with 2,564,547 firm-year observations, this study chooses the panel Tobit model with random effects to explore the influence of government affiliations on firm product innovation, followed by an analysis to test the moderation effects of dynamic institutional environments.FindingsThe study findings suggest that Chinese firms with higher-level government affiliations have a relatively high product innovation performance. It finds that this innovation stimulating effect is contingent on the dynamic nature of the institutional environment. To be specific, a high speed of institutional transition may depress the positive innovation effects of government affiliations, while a more synchronized transition speed of institutional components may enhance the positive innovation effects of firms' government affiliations.Originality/valueThis study adds to a better understanding of the drivers of product innovation in Chinese firms that are situated in environments that are characterized by institutional change, using and contributing to resource dependence theory and the dynamic institution-based view.

Who I am affects what I do: how does director diversity influence board roles in medium-sized family firms

Abstract: We expect board of director diversity to be reflected in the way directors carry out their monitoring and advisory roles, including succession planning, and to affect the governance of firms. We conceive that the behaviour of family firm boards is influenced by their demographic and cognitive diversity, which can in turn affect how directors perform their roles. We apply upper echelons theory (Hambrick and Mason, 1984) to six family business case studies to highlight how directors act as resource providers for their firms by utilising their personal experiences, judgement, external connections and access to information. We argue that there is a relationship between director diversity (demographic and cognitive), behaviour and roles, including those related to succession planning, that contributes to the ability of family businesses to survive and prosper.

Driving forces for industry 4.0 readiness, sustainable manufacturing practices and circular economy capabilities: does firm size matter?

Abstract: PurposeDespite just eight years remaining to meet the sustainable development goals (SDG, 2030), the manufacturing industry faces numerous challenges for small and medium-sized enterprises (SMEs). Some notable challenges include integrating sustainability, circular economy (CE), and industry 4.0 (I4.0) technologies in a productive manner. However, there is a paucity of evidence available on the role of institutional pressures and organizational resources to promote I4.0 and sustainability. To fill this void, this study develops and tests a model based on institutional theory and resource-based view (RBV) theory while also taking company size into view as a moderating construct.Design/methodology/approachTo test the study hypotheses and validate the model, data were obtained through a survey from 228 randomly selected SMEs manufacturing in China. Structured equation modeling and multigroup analysis were used to analyze the data.FindingsThe research findings indicate that institutional pressure has a positive effect on organizational resources (i.e., tangible and intangible), which are capable of orchestrating I4.0 readiness effectively. Also, I4.0 readiness has a positive effect on sustainable manufacturing practices and CE capabilities. Finally, firm size was revealed to be a significant moderator in driving overall integration.Practical implicationsBased on the findings, practical implications and future research directions are discussed.Originality/valueBased on the institutional and RBV theories, this research shows how SMEs could be influenced by different stakeholders to acquire and develop their resources and capabilities to accelerate I4.0 readiness that further enhances sustainable practices.

Creating resource passageways in cross-cultural virtual work teams: a longitudinal field study

Abstract: PurposeLens of conservation of resources (COR) theory has been used to study how organizations can create resource passageways for their employees via managers. This has been examined in cross-cultural virtual work teams distributed across time and space within the high-resource loss context of the COVID-19 pandemic.Design/methodology/approachLongitudinal field design was used in a transnational organization involving data collection at three times over eight months. At Time 1, qualitative methodology was used to propose a conceptual model. At Time 2 and Time 3, an online survey was used to collect data for 205 virtual work teams across 10 countries in the Asia–Pacific region pre and post “manager as coach” training respectively.FindingsUsing COR theory, the study highlights that “manager as coach” training is an effective resource for managers in the high resource depletion context of the pandemic. Access to timely support increases saliency for the resource-gain spiral and has a cross-over impact on virtual work team outcomes suggesting transferability of resources from managers to subordinates. Also, managers across all nationalities view coaching training as an equally valuable resource.Practical implicationsThe study provides evidence for investment in timely and relevant support for managers to positively and swiftly impact virtual work teams during high-resource loss contexts.Originality/valueThe study expands COR crossover theory across space and time dimensions using a longitudinal field research design.

Revisiting the resource-based view (RBV) theory: from cross-functional capabilities perspective in post COVID-19 period

Abstract: Due to ever-changing business context, researchers and academicians revisit established theories to examine their validity underdifferent evolving scenarios. Therefore, this study aims to examine the cross-functional capabilities of the organizations by revisiting the resource-based view (RBV) theory, especially focusing on thepost-COVID-19 period. This study also investigates the moderating role of the organization strategic management ability and itsinfluence on the performance of the organizations. After reviewing existing literature and applying RBV theory, a theoretical model was developed conceptually. Later, the conceptual model was validated using the structural equation modeling (SEM) technique with a survey of 342 usable respondents from 21 organizations. The study found thatRBV theory is useful and relevant for explaining organization cross-functional capabilities even in the post-COVID-19 period. We found that cross-functional capabilities have positively impacted overall organization capability, which then positively influences organization performance. The study also found that there is apositive moderating impact of strategic management ability onorganization performance.

Theories of corporate governance applied to state-owned enterprises

Abstract: The theories on corporate governance influence both the private and the public sector but need to be adapted to the context of implementation. The aim of the paper is to identify and present the main theories that influence the governance of state-owned enterprises (SOEs), providing the theoretical framework for future studies that analyze the application of corporate governance theories in the case of the mentioned organizations. The theories discussed in the current paper are the agency theory, the stakeholder theory, the resource dependency theory, and the institutional theory. The article focuses on SOEs since they have an important role in the economy, but the research on this topic is still scarce.

The resource theory of dephasing estimation in multiqubit systems

Abstract: We present a resource theory to investigate the power of a multqubit system as a probe in the task of dephasing estimation. Our approach employs the quantum Fisher information about the dephasing parameter as the resource measure. Based on the monotonicity of quantum Fisher information, we propose two sets of free operations in our resource theory, the Hamming distance preserving operations and the selectively Hamming distance preserving operations. We derive a necessary condition for the state transformation under these free operations and demonstrate that uniform superposition states are the golden states in our resource theory. We further compare our resource theory with the resource theory of coherence and thoroughly investigate the relation between their free operations in both single-qubit and multiqubit cases. Additionally, for multiqubit systems, we discover the incompatibility between the resource theory of dephasing estimation and that of $U(1)$ asymmetry, which is responsible for phase estimation. The condition for enhancing the performance of a probe state in phase estimation while preserving its ability in dephasing estimation is also discussed. Our results provide new insights into quantum parameter estimation by the resource-theoretic approach.

Trade policy uncertainty and corporate innovation: evidence from resource dependence perspective

Abstract: Corporate innovation activities under uncertain environment have attracted growing academic attention, yet didn’t reach a consistent result, and the mechanism of firms’ interdependence with other organisations is not well explored. This paper is committed to uncover the latent mechanism from a resource-dependence perspective behind the environment–innovation relationship. Adopting an unbalanced dataset of Chinese public listed firms from 2006 to 2020, this study testifies the positive association between trade policy uncertainty (TPU) and corporate innovation, based on the two-way fixed empirical model. Furthermore, levels of buyer companies’ dependence on major suppliers and implicit government guarantee reinforce the strength of TPU’s prompting effect on innovation output. Our conclusions are robust to a series of sensitivity tests and two-stage least squares (2SLS) instrumental variable method. Heterogeneous analysis shows that the buyer dependence mechanism is exclusively prominent in high-technology firms, and the implicit government guarantee mechanism is more significant among non-high-tech firms.

Corporate decisions on LGBT friendliness: a multi-level approach

Abstract: PurposeThis research investigates how and why firms adopt inclusive diversity activities, identifying the mechanisms behind firms involved in lesbian, gay, bisexual and transgender (LGBT)–friendly pursuits. By integrating resource dependence theory, institutional theory and stakeholder theory, the authors argue that a firm's LGBT friendliness is affected by marketing orientation and the external political environment.Design/methodology/approachThis study uses the Corporate Equality Index, as reported by the Human Rights Campaign, of 460 (1,540 firm-year observations) firms in the United States between 2006 and 2019.FindingsThis study finds a significant, positive relationship between a firm's marketing orientation and LGBT-friendly activities. This research also determines that this relationship is weakened by state-level diversity policies and strengthened by country-level political uncertainty.Originality/valueThe study results provide unique theoretical and practical implications for the debate on inclusive corporate policy in similar global markets.

The Moderating Effect of the COVID-19 Pandemic on the Relation between Corporate Governance and Firm Performance

Abstract: The present study aims to investigate the association between corporate governance mechanisms and financial performance among companies listed on the Tehran Stock Exchange (TSE). We also want to know if the COVID-19 global crisis moderates the relationship between them. The study sample consists of 1098 observations and 183 companies listed on the TSE from 2016 to 2021; furthermore, the statistical method used to test the hypotheses is panel data with random effects. In line with our expectations, the results show that the coronavirus pandemic worsened Iranian corporate performance. In support of agency theory, we figure out that board independence, board meeting frequency, and board financial expertise are correlated positively with firm value. In favor of resource dependency theory, this study finds robust evidence that audit committee size and independence have a positive effect on corporate performance. Most importantly, the positive linkage between board independence, board financial expertise, size, and independence of audit committee with firm performance was reversed during the COVID-19 pandemic, although the positive role of board meeting frequency in corporate profitability remained stable even during the COVID-19 outbreak. Furthermore, the outcomes indicate that CEO duality affects firms negatively, and this devastating effect became even stronger with the COVID-19 pandemic. Finally, we find that firms involved in mergers and acquisitions (M&A) managed to increase shareholders’ wealth using competitive advantage even during the pandemic.

Decision-making processes in organizational arrangements: An analysis in the light of population ecology and resource dependence

Abstract: Increasingly, in contemporary organizations, discussions about decision-making have been occupying a relevant space, because the "decision maker" has the responsibility of making decisions for the organization, considering that the entire environment is transformed through decisions within the perspective of a theory: when in the light of population ecology, the organization adapts to the environment and when in the light of the theory of resource dependence, The organization prioritizes cooperative relations. This article, through a narrative bibliographic review, brings contributions to the theories of resource dependence and population ecology in the decision-making processes in the organizational arrangements, through an objective theoretical framework, which allows the reflection on decision-making processes, their relationship with organizational arrangements and theories, their interface with the most diverse areas, as well as their applicability in organizations.

Attracting Female Directors in the United States: The Roles of Boards, Executives, and Other Stakeholders

Abstract: Previous research related to board gender diversity typically focuses on international settings outside of the U.S. In this study, we examine the influence of boards, executives, and other stakeholders in appointing a female director candidate to a U.S. board, which is a voluntary regime dominated by male candidates. Following institutional theory, social identity theory, and resource dependence theory, we find that boards, executives, and institutional investors play persistent roles across various time periods, company sizes, and levels of CEO power. Workforce and customer stakeholders have become significant influencers only in more recent years and in smaller firms. Understanding factors that allow firms to successfully attract female board members in a voluntary regime should be of interest to board members and regulators worldwide. Our findings should also be of interest to accounting academics examining the role of board gender diversity in the oversight of audit, financial reporting, and tax policies. Data Availability: All data are publicly available from the cited sources. JEL Classifications: G34; M48.

Gender Inclusiveness and Female Representation on the Board of Directors of the Benefit Company Model: Evidence from Italy

Abstract: This study aims to analyse whether firms adopting the institutional and organizational model of a benefit company (BC) increase the appointment of women to their board of directors (BoD) by applying the theoretical models of reputation management and resource dependence theory. A sample of 354 Italian firms adopting the BC model and a control group of 600 firms over the period of 2009–2018 were analysed. A fractional regression probit model was used to analyse the effect of the institutional form of the BC on the presence of women on BoDs. The findings, generally robust regarding different econometric specifications dealing with potential endogeneity, confirmed that a firm’s adoption of the BC model positively affects the likelihood of the firm increasing the presence of women on its BoD. This evidence justifies the actions of those stakeholders in firms that are actively involved in corporate social responsibility (CSR) processes, seeking increased reputation and legitimacy by increasing the number of female directors in the firm. The study contributes new insights into the relationship between CSR and the appointment of women on BoDs in the new and emerging business context of hybrid organizational models. Additionally, the study advances our knowledge about the heterogeneous and reversed associations between the institutional model of the BC and the choice of specific corporate governance mechanisms in the form of the appointment of women on BoDs to increase the reputation and legitimacy of firms.

Board attributes and environmental disclosure: what is the nexus in liberal economies?

Abstract: ABSTRACT Our study investigates the impact of the board of directors’ attributes on companies’ environmental disclosure. The sample comprised 1,037 companies from Australia, Canada, Ireland, New Zealand, the United Kingdom, and the United States between 2015 and 2018. The results reveal that the percentage of independent auditors, board size, and the presence of the sustainability committee positively influence environmental disclosure. Our findings show that greater diversity on the board is an important factor for companies to disclose more information on their emissions. We conclude that companies should pay greater attention to the characteristics of their boards of directors, as this determines their engagement in environmental issues. This research presents an environmental disclosure index that is less susceptible to greenwashing. The results also bring contributions to the resource dependence theory and agency theory.

The Underlying Theories of Organizational Sustainability: The Motivation Perspective

Abstract: The primary purpose of this paper is to illustrate the significance of several underlying theories of organizational sustainability from a motivational perspective. This paper adopts three theories from three distinct perspectives, including the institutional or organizational perspective, the employee perspective, and the stakeholder perspective, to construct and develop strong relationships among different variables to form a research framework connecting these three perspectives with organizational sustainability. The study then suggested a conceptual model for organizational sustainability based on three theories: the institutional theory (IT), the ability-motivation-opportunity (AMO) theory, and the stakeholder theory (ST). Several theoretical perspectives of organizational sustainability, including IT, AMO theory, and ST perspectives of sustainability concerns, were used to explore and determine the motivational viewpoint of these theories. This study began with a review of multiple studies and an analysis of the numerous ideas driving organizational sustainability. After that, the examined studies were appraised for their evidence and inadequacies. This paper included environmental, social, and economic aspects in one comprehensive review and focused on recent studies based on IT, AMO theory, and ST from a motivational perspective. Previous organizational sustainability reviews of several theories in different sectors or industries were primarily based on resource base view theory, resource dependency theory, social exchange theory, dynamic capability theory, and so on. This study examined current changes in IT, AMO theory, and ST theory from a motivational viewpoint. Additionally, the development of organizational sustainability in the industrial arena was addressed. This paper may be used as a guide for different stakeholders, especially practitioners and policymakers so that they can set up their strategies, action plans, and policies in a way that will ensure the sustainability of their organizations.

Board of Directors, Audit Committee and Firms’ Performance

Abstract: This study explores the different attributes of audit committees and boards of directors' effect on firm performance. Mainly the board’s size and independence and the audit committee’s employment, size, independence, financial experience, and frequency of meetings. This paper also talks about resource dependency theory which considers that. Non-independent directors have a positive effect on firm performance. On the contrary, agency theory suggests that the more independent the board is, the better the performance. Many accounting scandals and worldwide failures in corporate governance have occurred in the past few decades, affecting stakeholders and taking a heavy toll on national and global economies. After many infamous corporates, the United States passed the Sarbanes-Oxley Act (SOX), which acted to heighten the responsibilities of the board of directors in corporations, promotes fairness to both shareholders and stakeholders alike by enforcing listed companies to employ independent, knowledgeable, and proactive audit committees and directors and ultimately set the utmost importance on the protection of investors and stakeholders. Taking a sample of 96 companies, the results show that a more extensive and independent board positively affects business results, and the same applies to the implementation of an audit committee. However, our results found no link between the different characteristics of audit committees with firm performance. The findings above give us insight into how companies’ governance operates.

The efforts of manufacturing enterprises toward sustainable development under voluntary environmental policy: The roles of external pressure, attraction, and internal attributes

Abstract: Based on the National Green Factory Policy (NGFP) issued by the Chinese government in 2016, we analyzed the list of manufacturing enterprises awarded the National Green Factory (NGF) designation in 31 provinces over the period 2017–2021. In this regard, we found that the local governments' political resources and soft pressure, and enterprises' profitability have a positive effect, while mimetic pressure has a negative effect on the tendency of manufacturing enterprises to declare NGF designation (hereafter, TENDENCY). Moreover, the positive effect of soft pressure was stronger when political resources were high (vs. low). Additionally, we observed a U-shaped relationship between the enterprises' environmental pollution level and TENDENCY, and that profitability can weaken such relationship. This study contributes to the literature on the institutional theory and resource dependence theory, and provides new insights into how governments can develop voluntary environmental policies to incentive manufacturing firms to engage in green behaviors.

Beneficial, Harmful, or Both? Effects of Corporate Venture Capital and Alliance Activity on Product Recalls

Abstract: Despite growing numbers of corporate venture capital (CVC) deals and alliances, their effectiveness is not guaranteed. This paper investigates the positive and negative impacts of CVC and alliance activity on product safety under different levels of market turbulence. Using a resource-based learning perspective and panel data from large U.S. firms, we find that both CVC and alliance activity have inverted U-shaped relationships with product recall likelihood. Market turbulence moderates both relationships, but differently. We discuss how learning theory complements the resource-based view to understand why no or rather bold external venturing are less harmful than small-scale “stuck-in-the-middle” initiatives.

Dynamic Relationship Between Board of Directors and Corporate Sustainability Performance: Evidence from Energy Sector

Abstract: The 2030 agenda for sustainable development establishes a new global sustainability target, with corporations expected to contribute significantly by implementing sustainable practices. One strategy for engaging corporations in sustainable practice focuses on corporate governance (CG) mechanisms, such as the board of directors (BOD). On the premise of stakeholder theory, agency theory and resource dependency theory, the relationship between BOD and corporate sustainability performance (CSP) was investigated using the panel data analysis. Utilising a sample of 335 energy sector corporations from 48 countries our GMM estimation shows a significant relationship between CSP and board size, different positions for CEO and Chairperson roles, and interlocking directors. The findings also showed that having more independent directors on a board lowered CSP, while gender and cultural diversity did not affect CSP. The implications of these findings to policymakers on the energy sector corporations are not limited to improving CSP via formulating and implementing specific CG strategies and policies that are beneficial but also provide explicit information on how corporate energy sectors can change their behaviour with respect to sustainable practices and good governance to address social and environmental issues.