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.

How Customer Portfolio Affects New Product Development in Technology-Based Entrepreneurial Firms:

Abstract: This article focuses on how the customer portfolios of technology-based entrepreneurial firms affect new product development. Drawing on knowledge-based, resource dependence, and relational theories, the authors argue that the impact of a firm's customers on new product development depends on the size and relational embeddedness of the customer portfolio and the extent to which the firm is dependent on one or a few dominant customers for a majority of its revenues. The authors test the research model using longitudinal data on young firms operating in business-to-business markets in six technology-based industries. The results indicate that customer portfolio size has an inverse U-shaped relationship to the number of new products developed and that the more relationally embedded the customer set, the more new products the firm develops. Dependence stemming from revenue concentration has a negative impact on new product output. Furthermore, the authors find that relational embeddedness can compens...

Does Ownership Structure Matter for Firm Technological Innovation Performance? The Case of Korean Firms

Abstract: Manuscript Type: Empirical Research Question/Issue: This study examines the influence of firms' ownership structure on their technological innovation performance. First, we have examined whether ownership concentration positively influences technological innovation performance. Then we have investigated the primary reasons for the results derived from the first stage of our analysis by circumstantially exploring the impacts of four different ownership types. Research Findings/Insights: Using five sets of cross-sectional data, consisting of 301 Korean firms, we found that ownership concentration does not have a significant effect on firm technological innovation performance. However, some ownership types (e.g., institutional and foreign) do have a positive effect. Theoretical/Academic Implications: Drawing on agency theory and the resource dependence perspective, our paper is the first to consider a comprehensive treatment of the effect of ownership types on innovation in an emerging country, in particular in contrast to previous studies that have focused on advanced economies. Since only partial predictions suggested by agency and resource dependence perspectives were supported, it appears that neither theory adequately captures the ownership-technological innovation performance relationship. Thus, we suggest that future research should explore the question through a different theoretical lens to better understand the impact of ownership types. We suggest that transaction cost economics can be another path to approach the phenomenon. Practitioner/Policy Implications: This study suggests that managers should recognize how each characteristic of ownership structure (types) influences the building of firm-specific capabilities for innovation. Policy makers and managers should be aware of the impact of the complete range of ownership types on technological innovation performance when they implement corporate governance reform with greater effectiveness. It also suggests that successful technological catch-up and innovation not only require policies for upgrading technology capabilities, but also the setting up of a suitable supporting ownership structure that favors innovation of firms in emerging countries. We suggest that successful technological catch-up and innovation require a supporting ownership structure.

Governance structures, voluntary disclosures and public accountability: the case of UK higher education institutions

Abstract: Purpose The purpose of this paper is to investigate the extent of voluntary disclosures in UK higher education institutions’ (HEIs) annual reports and examine whether internal governance structures influence disclosure in the period following major reform and funding constraints. Design/methodology/approach The authors adopt a modified version of Coy and Dixon’s (2004) public accountability index, referred to in this paper as a public accountability and transparency index (PATI), to measure the extent of voluntary disclosures in 130 UK HEIs’ annual reports. Informed by a multi-theoretical framework drawn from public accountability, legitimacy, resource dependence and stakeholder perspectives, the authors propose that the characteristics of governing and executive structures in UK universities influence the extent of their voluntary disclosures. Findings The authors find a large degree of variability in the level of voluntary disclosures by universities and an overall relatively low level of PATI (44 per cent), particularly with regards to the disclosure of teaching/research outcomes. The authors also find that audit committee quality, governing board diversity, governor independence and the presence of a governance committee are associated with the level of disclosure. Finally, the authors find that the interaction between executive team characteristics and governance variables enhances the level of voluntary disclosures, thereby providing support for the continued relevance of a “shared” leadership in the HEIs’ sector towards enhancing accountability and transparency in HEIs. Research limitations/implications In spite of significant funding cuts, regulatory reforms and competitive challenges, the level of voluntary disclosure by UK HEIs remains low. Whilst the role of selected governance mechanisms and “shared leadership” in improving disclosure, is asserted, the varying level and selective basis of the disclosures across the surveyed HEIs suggest that the public accountability motive is weaker relative to the other motives underpinned by stakeholder, legitimacy and resource dependence perspectives. Originality/value This is the first study which explores the association between HEI governance structures, managerial characteristics and the level of disclosure in UK HEIs.

A Theoretical Exploration of the Adoption and Design of Flexible Benefit Plans: A Case of Human Resource Innovation

Abstract: In this article we explore theoretical explanations of managers' decisions about flexible benefit plans First, we examine the adoption and design of flexible benefit plans through four theoretic lenses: (1) institutional, (2) resource dependence, (3) agency, and (4) transaction cost We then integrate the relevant insights gained from these theories into a more complete model and derive propositions for future research Finally, we generalize the insights gained from exploring a specific innovation to broader questions surrounding decisions about other human resource innovations

Does Boardroom Gender Diversity Matter? Evidence from a Transitional Economy

Abstract: This research investigates the relationship between board gender diversity and firm financial performance in the context of a transitional economy characterised by an underdeveloped corporate governance system. Using a sample of 120 publicly listed companies in Vietnam covering a 4-year period from 2008 to 2011, we examine this relationship in a dynamic modelling framework, which controls for potential sources of endogeneity. We find that board gender diversity appears to have an effect on firm performance. This finding remains robust when alternative proxies for gender diversity are employed and is consistent with the perspectives of agency theory and resource dependence theory. The number of female directors in the boardroom also matters, supporting the view that if female board representation affects firm outcomes, this effect is more pronounced when the number of female directors increases. It is observed, furthermore, that the marginal positive performance effect of board gender diversity ceases when the percentage of female directors reaches a breakpoint of about 20%. This finding suggests that there is perhaps a potential trade-off between the costs and benefits of board gender diversification. Our findings significantly contribute to the growing literature of non-US based studies, by providing robust empirical evidence from a transitional economy in East Asia.