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.

What are the consequences of initiative-taking in multinational subsidiaries?

Abstract: The phenomenon of subsidiary initiative has received increasing attention in recent years, but the consequences of initiatives and the associated dynamics of headquarters–subsidiary relationships have received much less research attention. Building on resource dependence theory and self-determination theory we argue that two basic goals subsidiary managers pursue are to achieve autonomy vis-a-vis corporate headquarters, and influence over other units. We investigate how a subsidiary's past initiatives contribute to its bargaining power, and how headquarters’ response – through granting attention or monitoring – affects the realization of the subsidiary's goals. Using structural equation modeling, our hypotheses are tested by drawing on a sample of 257 subsidiaries located in three different countries (Australia, Canada and the United Kingdom). Our results show that subsidiaries are not able to increase their influence through initiatives unless they get headquarters’ attention. We also find that subsidiary initiatives have a direct effect on subsidiary autonomy, but the caveat is that initiatives also evoke headquarters monitoring, which in turn decreases the subsidiary's autonomy. In addition to providing insights into how subsidiaries can achieve their goals, the paper also sheds light on the critical role headquarters plays in leveraging initiatives, and the influence of individual subsidiaries in the multinational enterprise.

Market-seeking MNEs in an emerging market: How parent–subsidiary links shape overseas success

Abstract: This study extends research on parent–subsidiary links, applying new theoretical perspectives – those of resource dependence and dynamic capability – to the new empirical setting of an emerging market. We suggest that parent–subsidiary links help to mitigate emerging market threats by reducing external dependence, and help to capitalize on emerging market opportunities by enhancing local responsiveness. We identify four dimensions (resource commitment, information flow, local responsiveness and control flexibility) to parent–subsidiary links, and examine environmental effects in moderating the contribution of these dimensions. The analysis of 196 Multi National Enterprise (MNE) subsidiaries in China shows that a parent firm's control flexibility, resource commitment and local responsiveness exert a strong and positive influences on subsidiary performance. These influences are weaker when regulatory interference is higher, but stronger when industrial opportunity is richer.

A Multiple-Constituency Model of Effectiveness: An Empirical Examination at the Human Resource Subunit Level.

Abstract: This research was supported by a grant from the Organizational Effectiveness Program of the Office of Naval Research under grant N00014-84-K006, the Busines~ Associate Funds of the Fuqua School of Business, Duke University, and the Control Data Corporation. The author would like to thank the following individuals for their valuable comments on earlier drafts of the manuscript: Susan Ashford, Larry Cummings, Michael Hitt, Mike Keeley, Lyman Porter, Keith Weigelt, and Ray Zammuto. Finally, a special appreciation is extended to Associate Editor Marshall Meyer and three anonymous reviewers for their many insightful comments and constructive suggestions in refining the ideas in this paper. Using the human resource (HR) subunit as the focus for assessment, several core postulates of the multiple constituency model of effectiveness were examined empirically. Results supported the theoretical efficacy of the model. First, the relevant constituencies reported by the HR subunits were conceptually meaningful. Second, the subunit's effectiveness was influenced by both its adaptive responses, such as the use of human resource committees and control of employee absenteeism, and environmental context variables, such as assistance from corporate human resource groups and heterogeneity in the demographics of the constituents. Third, different adaptive response variables were associated with the effectiveness assessment of different constituencies, supporting the key postulate that effectiveness models of multiple constituencies are nonequivalent. The paper concludes with many suggestions for future research and conceptual extensions to the multiple-constituency model.'

Strategic Planning as Competitive Advantage

Abstract: Since 1970, over forty empirical studies have examined the performance consequences of formal strategic planning. This line of research has drawn heavy criticism from reviewers on methodological grounds, and has produced confusing, apparently contradicatory results. This article reevaluates the planning-performance relationship from a resource perspective, arguing that strategic planning does not satisfy the criteria for sustainable competitve advantage-- although it may produce economic value, it is easily imitated and may be substitutable. The article suggests that previous studies produced inconsistent results because they did not account for the dissemination of strategic planning over time, or for industry differences in strategic planning factor markets. An empirical test in two industries funds that formal strategic planning and financial performance are unrelated in a 'planning equilibrium' industry, but positively related in an industry with strategic planning factor market imperfections.

How do networks and learning drive M&As? An institutional comparison between China and the United States

Abstract: What drives mergers and acquisitions (M&As) in different institutional environments? This article builds on the resource dependence perspective and argues that networks, learning, and institutions represent three building blocks that can enhance our understanding of the drivers behind M&As. Specifically, we consider firms as learning actors embedded in network relations and influenced by institutional development, and compare and contrast firms' acquisition activities across the United States and China. Our findings show that there are indeed important learning and network factors that lead to M&As. More interestingly, the impact of such learning and network factors varies sharply across countries with different market-based institutions. Copyright © 2009 John Wiley & Sons, Ltd.