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 TRANSNATIONAL CHALLENGE: PERFORMANCE AND EXPATRIATE PRESENCE IN THE OVERSEAS AFFILIATES OF JAPANESE MNCs

Abstract: Drawing on empirical data from two studies of 119 Japanese affiliates located in the United States and Europe, this chapter focuses on three fundamental questions: (1) What organizational factors influence performance of the overseas affiliates of Japanese MNCs? (2) What impact does expatriate staffing have on the affiliate’s performance? (3) What factors influence expatriate staffing patterns in Japanese MNCs? The empirical results lend support to the hypothesis that MNCs characterized by global integration and local responsiveness will outperform less transnational competitors, although there are significant differences between the American and European subsamples on the impact of expatriate presence on affiliate performance. In addition, there is no support for the life-cycle prediction that age or parent company experience influences expatriate staffing levels or for the resource dependence prediction that integration with the parent influences expatriate presence. These results and their implications are discussed.

What Impact Does Corporate Governance Have on Corporate Environmental Performances? An Empirical Study of Italian Listed Firms

Abstract: In this paper, we first build a multi-theoretical framework through which we hypothesise that the governance mechanisms of a board of directors, on the one hand, and the ownership structures of family and nonfamily firms, on the other, can have an impact on corporate environmental performances. We then test this hypothesis against a sample of 83 Italian listed firms, noting the characteristics of their governance and ownership structures over the five years from 2013 to 2017. We also take note of data from the firms’ Sustainability Reports on emissions of greenhouse gases over the 2014–2018 five-year period. The results we obtain support the prediction, made in line with the Agency-Theory perspective, that there is a positive relationship between board independence and the adoption of environmentally responsible practices. Only partial support emerges for the hypotheses, made in line with the Resource Dependence Theory, according to which better corporate environmental performances can be obtained by increasing the resource provision of board members. In particular, we discover a positive effect of a large-size board on corporate environmental performances, but no significant effect arising from the presence of interlocked board members. Finally, our study provides support for the theoretically-based hypothesis according to which the non-economic utility (socioemotional wealth) of family ownership makes family firms likely to have better environmental performances than non-family firms.

Effective bioeconomy policies for the uptake of innovative technologies under resource constraints

Abstract: The bioeconomy is a shared vision for a future European industry entirely based on organic matter. Authorities support this technological development with subsidies and policies stimulating R&D. One major limitation for the bioeconomy is that R&D and industrial growth require the continuous availability of biomass as a primary resource. This resource dependence is already present during the formative years of new biobased innovations and influences the pilot and demonstration phase of the development. Traditionally, it is assumed that public support for pilot and demonstration initiatives may overcome this hurdle. In this paper, we investigate how this resource constraint limits the effectiveness of bioeconomy policies. The future development of the biobased sector is simulated including the inherent dependence of industrial activity on biomass. We simulate the future growth and technological diversity of an emerging biotechnological sector: the sector of manure transformation in Belgium. The paper reports the evolutions for three policy scenarios. The model explicitly accounts for endogenous innovation and knowledge transfer mechanisms. The results show that policies may have an important impact on the sector structure in the long run, but the sector growth remains ultimately constrained by the availability of inputs. So bioeconomy policies to promote innovation will be less effective, unless mechanisms are included to alleviate the resource constraint.

How powerful political ties appropriate resources and how weaker organizations protect themselves: A case study from Indonesia

Abstract: We advance the resource dependence literature on appropriation of organizational resources by powerful partners, focusing on political ties. Using a unique emerging market case of a venture with political ties, we advance theory by unpacking how political connections can hurt the organization by increasing the permeability of organizational boundaries. Our extensions highlight the crucial role of control mechanisms for politically connected organizations.

The influence of organizational factors on board roles

Abstract: Purpose Using a contingency approach, the purpose of this paper is to study how organizational factors (such as the organizational life cycle, firm size, firm ownership concentration and firm technology) determine the relative importance of the monitoring and provision of resources roles provided by board members. Design/methodology/approach This paper highlights the importance of contingency factors in carrying out board’s roles using a sample of 579 European firms registered in the STOXX Europe 600 index. The authors used a longitudinal analysis for the period from 2002 through to 2011. Findings The results show that the monitoring role is more relevant for companies that are large, are operating at the mature and stagnant stages, have a dispersed ownership and are low-technology. However, the provision of resources role is more relevant for companies that are in the growth and stagnant stages, and have a concentrated ownership. Originality/value The traditional analysis that relates the board’s structure and composition to the board’s roles focuses on determining what board should be the best. It plays little attention to analyzing which organizational factors affect the importance and presence of monitoring or resource dependence roles. In this regard, this work adds significant insights to agency theory and resource dependence theory as, with a contingency framework, the research aims to find what functions the board needs to develop in order to get better firm performance.