Topic
Resource dependence theory
About: Resource dependence theory is a research topic. Over the lifetime, 2732 publications have been published within this topic receiving 184871 citations.
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TL;DR: The authors examined whether certain proxies for board incentives and board capital are linked with bankruptcy in unlisted firms and found that firms with boards led by an independent board chair (vs. CEO duality), and including longer-tenured directors, and directors with fewer additional directorships on average, are less likely to become bankrupt.
Abstract: Manuscript Type
Empirical
Research Question/Issue
This study examines whether certain proxies for board incentives and board capital are linked with bankruptcy in unlisted firms.
Research Findings/Insights
Based on data analyzed over a five-year period with a sample of 232 matched pairs of unlisted firms, results reveal that firms with boards led by an independent Board Chair (vs. CEO duality), and including longer-tenured directors, and directors with fewer additional directorships on average, are less likely to become bankrupt. Results of analyses of board size and board change support a �reputation� hypothesis, i.e. that directors begin to flee firms in a downward spiral prior to bankruptcy.
Theoretical/Academic Implications
Results support an eclectic model of board incentives and board capital, which integrates elements of agency and resource dependence theories, and the group decision-making literature to explain governance antecedents of firms that went bankrupt. It builds on a model proposed by Hillman and Dalziel, while identifying important differences, including lack of support for predicted moderating effects between board incentives and board capital. Findings also support applicability of the threat-rigidity logic and reputation hypothesis in this context, and the importance of anchoring corporate governance research more precisely on prediction of certain levels of performance.
Practitioner/Policy Implications
Findings support governance recommendations to separate Board Chair and CEO leadership and limit a director's number of outside directorships. Negative effects of director tenure on bankruptcy contradict the notion of �term limits,� suggesting that benefits of firm-specific knowledge and experience may outweigh risks of entrenchment.
40 citations
TL;DR: In this paper, the authors argue that the increasing professionalization and dissemination of mainstream CSR concepts and instruments leads to a headquartering effect, i.e., the concentration of CSR-related decision-making within corporate headquarters.
Abstract: Purpose – This paper aims to argue that the on-going professionalization and dissemination of the current wave of corporate social responsibility (CSR) concepts and instruments leads to a headquartering effect, i.e. the concentration of CSR-related decision-making within corporate headquarters. This headquartering effect casts doubt on earlier studies suggesting that the “transnational” or “glocal” model can effectively address the multitude of global and local CSR challenges modern multinational companies (MNCs) face. Design/methodology/approach – This conceptual paper uses a stakeholder lens, in turn, drawing from resource dependence theory and organizational legitimacy theory to develop under which conditions claims of Southern stakeholders will be considered by Northern MNCs. It provides evidence for the existence of a headquartering effect as a defining characteristic of mainstream CSR approaches. Findings – The authors argue that the increasing professionalization and dissemination of mainstream CSR...
40 citations
TL;DR: In this article, the authors examine the ways in which place-specific characteristics, such as commodity produced, local economic diversity and basic demographic features of a town, have contributed to change in socio-economic well-being of mining communities across Western Australia over a 10-year period.
Abstract: The economy of Western Australia has long been characterized by a heavy dependence on extractive industries. The past decade, however, has seen the mining industry expand very rapidly, with significant implications for the small towns that support the sector. In this article, we consider the socio-economic performance of these towns through an assessment of unemployment, welfare dependence and incomes. In contrast to many other studies of resource boomtowns that typically focus on a single locality or time period, in this study we focus explicitly on spatial and temporal variability. We examine the ways in which place-specific characteristics—the commodity produced, local economic diversity and basic demographic features of a town—interact and have contributed to change in socio-economic well-being of mining communities across Western Australia over a 10-year period.
39 citations
TL;DR: This article explored why and how firms respond to social demands through philanthropic giving in the context of a severe natural disaster, integrating resource dependence theory and institutional theory to build a two-step model of organizational response to social needs.
Abstract: This study explores why and how firms respond to social demands through philanthropic giving in the context of a severe natural disaster. Drawing on Marquis and Qian's organizational response model to government signals, we integrate resource dependence theory and institutional theory to build a two-step model of organizational response to social needs, in situations of disaster relief. We argue that firms depending more on the government for support are more likely to donate in disaster relief, while firms who receive more scrutiny from the government and the general public and firms having more slack resources are likely to donate more. Evidence from Chinese listed companies' donations to the 2008 Sichuan earthquake largely supports our predictions. This study provides a more precise understanding of the corporate philanthropic decision process, decoupling the drivers of philanthropic giving, and those determining the amount given. Theoretical and practical implications are suggested.
39 citations
TL;DR: In this paper, the authors analyzed the context and use of risk management in local authorities in England and Australia and found that the basic structures of riskmanagement were common across all four local authorities and substantial differences were found in the national context in which risk management was used.
Abstract: This paper analyses the context and use of risk management in local authorities in England and Australia. The basic structures of risk management were found to be common across all four local authorities in both countries. However, substantial differences were found in the national context in which risk management was used. The national context in each country was compared, and a large and small local authority in each country was used for illustrative purposes. The research findings were tested against institutional, contingency, resource dependence, and political perspectives. The research finding is that each theory was necessary but not sufficient and a pluralist approach was formulated to explain the similarities and differences in risk management in local authorities across two countries.
39 citations