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.

Constrained choices in alliance formations: Cupids and organizational marriages

Abstract: This article develops a constrained choice model of strategic decision-making for `cupid' alliances. Unlike voluntary alliances, cupid alliances are forged between `target' organizations at the behest of a third `cupid' organization that stands to benefit from creation of the alliance. Three key alliance decisions — whether to partner, with whom, and governance — are substantially curtailed by the cupid's requirements, producing a severely constrained set of strategic decisions. The conceptual model is supplemented with a case study which relies on qualitative interviews, observations and communication network data collected from principals negotiating a cupid alliance. A finding which may be unique to cupid alliances was the decline in trust over the course of the negotiation between those representatives whose organizations had no past alliance relationships. This finding is especially interesting given the fact that despite the decreased propensity for representatives to trust, an agreement was still r...

Alliance formation, partner diversity, and performance of Singapore startups

Abstract: Drawing on the resource dependence theory, the resource-based view, and the organizational learning perspective, we examine the under-researched relationship between alliance strategy and the performance of high-tech startup firms. Specifically, we posit that startup firms forging a larger number of alliances will exhibit better performance. We also hypothesize that startups with a diverse portfolio of alliance partners will outperform others. Our analysis of 76 survey responses obtained from Internet-related startups in Singapore lends support to our key predictions. Our results are robust to the deployment of alternative performance measures.

Board Directors’ Expertise and Corporate Corruption Disclosure: The Moderating Role of Political Connections

Abstract: Professional expert directors extensively influence corporate corruption disclosure (CCD), while higher political connections may exacerbate corporate management. This study investigates the relationship between the presence of external experts on a board and CCD, as well as the moderating effect of political connections, on the positive role of legal experts in CCD. The study combines agency, resource dependence and stakeholder theories to show how resourceful directors on the board can promote corruption disclosure. Using data on listed firms in the Bangladeshi financial sector, the study analyzes 247 firm-year observations from 2012 to 2016. The results of a multiple regression analysis indicate that accounting experts, legal experts, political connections and corporate media visibility each have a positive and significant influence on CCD. Moreover, the moderating effect of political connections on the relationship between legal experts and CCD is negative and significant due to their higher political influences. The study has significant implications for corporate governance and for policies concerning the development of the economy while reducing corruption.

Liability of Foreignness and the Uses of Expatriates in Japanese Multinational Corporations in the United States

Abstract: This paper examines the factors which determine the use of expatriates (parent company managers) in Japanese multinational corporations in the United States, addressing the issue of “liability of foreignness” in establishing new ventures in an international context. The paper attempts to explain theoretically the variance in the proportion of expatriates used across these United States subsidiaries, drawing on the resource dependence theory. Previous research suggests that when liabilities of foreignness are high, and when there is a need to develop organizational forms that insure reliable resource flows to coordinate activities, then Japanese multinational corporations will substitute expatriates for local personnel. Data on 3,119 corporate establishments are derived from the section on the United States of Kaigai Shinshutsu Kigyo Soran [List of Japanese-Owned Firms Abroad] (Toyokeizai 1995), seeing Japanese expatriates as agents who engage in transactions of necessary resources with surrounding corporations and with the parent companies.

Inter-firm IT governance in power-imbalanced buyer–supplier dyads: exploring how it works and why it lasts

Abstract: Using a multiple case study design, we investigate the issue of inter-firm IT governance and its impact on information sharing in buyer–supplier dyadic relationships. We interviewed 38 managers of operations, purchasing, and IT in five dyadic relationships, and identified and examined one type of inter-firm IT governance: unilateral IT governance. In this type of IT governance, one party of the dyad dominates the relationship and the decision rights regarding inter-firm IT systems and data sharing. We find that unilateral inter-firm IT governance develops under contract-based and relationship-supplemented inter-firm governance arrangements in which significant power imbalance exists. However, contrary to the prediction of resource dependence theory, power-imbalanced governance can survive and thrive over a long period of time. We find that the inter-firm relational norms and trust that develop between these dyads constrain opportunistic and myopic behaviors in both parties, thus sustaining the seemingly unstable unilateral inter-firm IT governance. We also find that the operational necessity of the buyers and the IT capability of the suppliers are two primary factors that constrain inter-firm information sharing in these dyads. On the basis of these findings, we propose a process model for understanding and managing this type of inter-firm IT governance.