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.

Inter-organizational Relationship and Innovation: A Review of Literature

Abstract: Introduction The network approach is not new. It dates back to the 1930s in organizational studies but also owes much to its founding disciplines and conceptual origins, namely sociology, anthropology and role theory (Jack, 2010). The network concept has captured a special position in the scientific literature of business, organization, entrepreneurship and management. This is one of the important factors that lead to improvement of business performance (Li, Cui & Li, 2008). Networks provide access to resources like capital (Aldrich & Zimmer, 1987), power and influence (Sousa et al., 2008). Organizations need different relations to gain access to knowledge and information about innovations, investors and markets (Aldrich and Martinez, 2000). Inter-organizational networks and their effects on firms' capability and performance has been subject of many researches in the area of network studies. But, there is not a clear and widely accepted definition of this concept mainly because this term has a metaphorical origin and also different disciplines have used it frequently in their research approaches. (Borgatti et al., 2009). The term network is not always used to describe the inter-organizational relations. Many who study business, community, and other organizational networks use terms partnerships, strategic alliances, inter-organizational relationships, coalitions, cooperative arrangements, or collaborative agreements (Provan et al., 2007). In inter-organizational research, "networks" can refer to as different phenomena such as whole networks, interlocks and strictly dyadic relations (Borgatti et al., 2009). Many, in particular those tying their work to resource dependence theory and transaction cost economics or researching inter-organizational contracts also focus only on dyads (relationships between two organizations) (Provan et al., 2007). One of the most widely accepted definitions in the social network analysis literature defines networks as "a set of nodes (e.g. persons, organizations) linked by a set of social relationships (e.g. Friendships, transfer of funds, overlapping membership) of a specified type" (Borgatti et al., 2009). Despite differences, nearly all definitions refer to certain common themes, including social interaction (of individuals acting on behalf of their organizations), relationships, connectedness, collaboration, collective action, trust, and cooperation (Provan et al., 2007). Network research can involve the study of a wide range of features and aspects such as network size, structure, interactional processes, influences, behaviors and skills and this might be an advantage and also a constraint (Jack, 2010). In recent years, the inter-organizational networks have gained attention of innovation researchers. Inter-organizational networks have been identified as one of the critical success factors in implementation of innovations. Innovation is development and implementation of new ideas (Van de Ven, 1986). Innovations are increasingly taking place in networks, in which actors with different backgrounds are involved (Kallio et al., 2010). When the knowledge base of an industry is both complex and expanding and the sources of expertise are widely dispersed, the locus of innovation will be found in networks of learning, rather than in individual firms (Powell et al., 1996). Rothwell (1977) gave strong support to the idea that success in innovation has to do with long-term relationships and close interaction with agents external to the firm. This is particularly evident in small knowledge intensive firms which have few resources (Jenssen & Nybakk, 2013). Soh and Roberts (2003) Believe that empirical investigation of an integrated framework on networks of innovators is important because the convergence of open systems technologies in the recent years has intensified the collaboration efforts among competing firms and increased the number of joint product developments significantly. …

Institutional Investors and Board of Directors' Monitoring Role on Risk Management Disclosure Level in Malaysia

Abstract: (ProQuest: ... denotes formulae omitted.)IntroductionThe ever increasing corporate scandals have caused lack of confidence among investors and creditors in companies' financial reporting. This has led to the transformation of corporate governance as the top priority among companies (Raber, 2003) facing uncertainty and bankruptcies. This is evident from the high profile companies such as Enron, Parmalat, WorldCom, and Xerox, in the late 1990s and 2000s, which were involved in the accounting irregularities due to the absence of important information such as risk management (Cabedo and Tirado, 2003).The occurrence of accounting irregularities has led investors to call for more disclosures. One important information that is of particular interest to investors is non-financial segment of the annual report (Amran et al., 2009), particularly on corporate governance. Information related to corporate governance such as internal control system and risk management system could assure investors that the organizations are free from accounting irregularities. Dobler (2008) stated that one factor in corporate disclosure is risk management. Risk reporting is important to inform investors the effects of risks on companies' future financial position.In Malaysia, the Asian financial crisis in 1997 has caused many companies to collapse. Similarly, the sub-prime mortgage crisis in the US in 2008 has badly affected the companies. Lack of corporate governance, weak internal control and risk management system were viewed as determinants of the collapsed companies. According to Muda and Yazid (2006), the impact of such crisis may be less eminent if the companies have had actively managed their risk. The Asian financial crisis has indeed taught valuable lessons to the Malaysian companies, particularly in improving their corporate governance and risk reporting. In response to the Asian financial crisis, the Malaysian government has established the Malaysian Code of Corporate Governance (MCCG) in 2000. The aim of MCCG is to set out principles and best practices as guidelines for companies in running their operations in achieving optimal governance framework including risk reporting. MCCG was later revised in 2007.MCCG and listing requirements, however, could not enforce companies to provide good risk management system within the organization. The interaction of external parties that are independent from the management seems to be an essential element in continuously monitoring the risk management system and its disclosure level. According to Abraham and Cox (2007), the role of institutional investors in a company plays a great influence on risk management disclosure due to their accessibility in participating in the decision-making process at the top level of management. Apart from external monitors, internal parties involved with the management of companies are the best people to consistently monitor the corporate disclosure practices. Raber (2003) suggested that effective board of directors should carry out their role in ensuring that they have performed their duties in monitoring decisions as well as risk management. This is because the board of directors act as a proxy to their shareholders. According to agency theory, the presence of a non-executive director on the board of directors is expected to monitor the management and protect shareholders' interest (Fama and Jensen, 1983). The resource dependence theory also provides similar argument that more non-executive directors on the board of directors would be more beneficial due to their expertise, prestige and contacts.This study focuses on the effects of institutional investors and board characteristics in monitoring risk management disclosure level. In essence, this study is useful to regulators in Malaysia in assisting them to evaluate the compliance level and monitoring effectiveness of the board of directors. The findings of this study provide an understanding on the role of institutional investors and board of directors in organizational performance because of their important role in the management decisions relating to improving risk management disclosure. …

How the Economic and Financial Situation of the Community Affects Sport Clubs’ Resources: Evidence from Multi-Level Models

Abstract: In many Western countries, local community sport clubs are important providers of leisure, sport, and social programs. These sport clubs are nonprofit organizations, which operate in an increasingly challenging environment. This study considers a club’s direct local environment, i.e., the community the club is located in. The open systems model and the resource dependence represent the theoretical framework. The purpose of this research is to examine the effect of the financial and economic environment in the community on the resource situation of sport clubs (human, infrastructure, and financial resources). The empirical evaluation is undertaken using data from a nationwide survey of non-profit sport clubs in Germany (organizational level; n = 19,345), which are combined with secondary data on community characteristics (community level; n = 3153). Given the hierarchical data structure, multi-level analyses are applied. The results show that volunteer problems are smaller among clubs in communities with high unemployment. Facility and financial problems are greater in large communities. Sport clubs located in communities that could break even were also more likely to break even themselves. The findings show that resource problems are not necessarily due to poor club management, since higher-level (community) factors significantly affect the resource situation of sport clubs too.

Organizational changes in Chinese companies: a resource‐based view

Abstract: Purpose – In recent years, resource‐based theory has emerged as one of the most promising theoretical frameworks in the field of management. In this paper, the authors aim to explore the application of a resource‐based view when implementing organizational change in Chinese organizations. The problems associated with change are explored from the perspective of human resources (HR).Design/methodology/approach – Structured interviews were conducted with top or middle managers in 160 companies in several large cities in the northern part of China: Beijing, Tianjin, Jinan and Zibo.Findings – From the perspective of HR, the main problems faced when implementing change in Chinese organizations include the following: bureaucratic regulations and strict orders remain the core features of the process of implementing changes in Chinese companies. Meanwhile, the intrinsic values and emotions of employees were neglected and coercion and manipulation was frequently used as a strategy to overcome resistance to change. ...