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.

The liabilities of foreign institutional ownership: Managing political dependence through corporate political spending

Abstract: Research Summary The benefits of foreign institutional ownership (FIO) have been amply researched, but there are also potential downsides to such ownership. High FIO can subject a firm to heightened regulatory scrutiny and compliance, increasing its political dependence. Drawing on resource dependence theory, we argue that firms can manage the political dependence that arises from FIO by engaging in corporate political spending (CPS). We derive two moderating conditions from our theoretical argument, positing that the strength of the positive relationship between FIO and CPS hinges on the intensity of a firm's government contracting and on the political sensitivity of the industry. Our study advances strategic ownership research by highlighting that U.S. firms may need to manage the potential liabilities associated with FIO through nonmarket strategy. Managerial Summary Research suggests that firms can reap many benefits from equity investments made by foreign institutional investors. However, such investments may also have potential downsides. We posit that high levels of FIO may subject a firm to increased political and regulatory scrutiny, and that firms can manage this increased exposure to government by engaging in corporate political activities that allow them to monitor and influence the political landscape. To explore this question, we analyzed a large sample of publicly traded U.S. firms and find empirical support for our arguments. Our study highlights an unintended “liability” of FIO that firm executives should be aware of and has practical implications for how firms manage their investors and allocate resources between market and nonmarket strategies.

Corporate board gender diversity and corporate social responsibility reporting in Malaysia

Abstract: This study aims to examine the impact of board gender diversity on Corporate Social Responsibility (CSR) reporting by public listed companies of Bursa Malaysia over the period 2008–2013. Content an...

Institutional theory and human resource management

Abstract: The study of institutions traverses the academic fields of economics, sociology, political science and organisational theory. The common denominator for institutionalism in various disciplines appears to be that of, 'institutions matter' (Kaufman 2011). An underlying assumption in the study of institutions is that organisations are deeply embedded in the wider institutional context (Powell 1988; DiMaggio & Powell 1991). Thus, "organisational practices are either a direct reflection of, or response to, rules and structures built into their larger environment" (Paauwe & Boselie 2003, p. 59).This institutional environment is the source of legitimisation, rewards or incentives for, as well as constraints or sanctions on, organisational activities (Meyer & Rowan 1977). The relevance of institutional theory to Human Resource Management (HRM) was initially derived from this view (Rosenzweig & Nohria 1994).

A culture theory commentary on Meyer and Peng’s theoretical probe into Central and Eastern Europe

Abstract: Meyer and Peng’s Decade Award article and Retrospective integrate economic and sociological theories of transaction costs, firm resources, and institutions and apply them to firms in Central and Eastern Europe in ways that can inform and be informed by culture theory. Culture theorizing in IB typically uses dimensions of values and norms to analyze the IB implications of the underlying logics that characterize patterns of thought, action and interaction of countries and other large societies. Transaction cost theorizing helps explain the social forces that link cultural group boundaries with country boundaries. Firm resource theory can be informed by the toolbox metaphor to understand cultural patterns in the resources that firms in a particular locale have most readily available. Neo-institutional theory, particularly its political science thread, cautions IB scholars to represent governmental arrangements and policies as arising from cultural norms and values rather than as independent variables that spring de nova from government leaders. Integrative analyses, like the Decade Award article and Retrospective, point out links and complementarities among diverse theories, but need to take care lest superficial similarities in how terms like institution and culture are used in different theories mask fundamental conceptual differences.

Institutional Theory and Corporate Sustainability: Determinant Versus Interactive Approaches

Abstract: Institutional theory has shifted from determinant to interactive arguments in recent decades, and sustainability scholarship reflects this change. In this article, I consider whether this shift is empirically justified. I review the use of both determinant and interactive arguments in sustainability research and test two sets of competing hypotheses regarding the likelihood of adoption of sustainable practices. Through logistic regression analysis of a sample of 391 U.S.-based firms, I find no support for hypotheses grounded in determinant arguments, but strong support for hypotheses based on interactive arguments. The results of this study offer implications for scholars, practitioners, and policymakers.