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 Prompts Companies to Collaboration With NGOs? Recent Evidence From the Netherlands

Abstract: This article examines the factors that influence the propensity of corporations to engage with NGOs. Drawing from resource dependency theory (RDT) and related theories of social networks and the resource-based view of the firm, the authors develop a series of hypotheses that draw from this conceptual foundation to predict a range of factors that influence firms to collaborate with NGOs. These factors include the level of commitment of the firm to CSR, the strategic fit between the firm’s and the NGO’s resources, the level of trust the firm has in NGOs, the frequency of contact with NGOs, prior level and perception of experience with NGOs, and the level of pressure exerted by NGOs. The authors report on results of a survey of the Top 500 firms in the Netherlands on their interactions with NGOs, finding general support for our hypotheses, and suggest that understanding the motives for firm–NGO interactions can teach us more about firms’ corporate social activities and the way such activities are shaped in t...

WANTED: A Good Network Theory of Organization

Abstract: Gerald R. Salancik Carnegie Mellon University Network analysis corrects a tendency in organizational theory to focus on the trees rather than the forest, on the actions of individual organizations rather than on the organization of their actions. Since it is fitting that organizational theory address organization, the reviews of Ronald Burt's book Structural Holes by David Krackhardt and Steven Andrews offer an opportunity for reflecting on the promise of social network analysis for organizational theory. Much of its promise has yet to be realized, in that social network analysis has been used mainly as a tool for analyzing data about organizations rather than for understanding organizations per se. Thus we know that personal interaction patterns in organizations are associated with power, turnover, information flows, attitudes, promotion opportunities, and social support. Beyond a single organization, we know that firms cluster because of their involvements on each other's boards and that such clusters relate to community influence, to corporate giving, to the adoption of defenses against corporate takeovers, or to the prices firms pay when acquiring other firms. We know also that network positions are related to power and that the structure of resource dependence relations shadows how firms conform to the demands of other firms or how they extract profits from one another.

The Influence of the Financial Revolution on the Nature of Firms

Abstract: Major technological, regulatory, and institutional changes have made finance more widely available in recent years. The ability of financial institutions to price a variety of exotic instruments, and to assess and spread risks, has increased. More data on potential borrowers is now available, and it is also more timely. Improvements in accounting disclosure have resulted in greater borrower transparency. Deregulation has resulted in greater competition and better prices in financial markets. Finally, regulatory barriers protecting the turf of different kinds of financial institutions have come down, resulting in the emergence of new institutional forms. These changes amount to a bona fide "financial revolution." In this article, we focus on the impact the financial revolution has had on the way firms are (or should be) organized and managed, and on the policy consequences. To do this, we first need to understand what firms are and what drives their organizational structure. A caveat is in order at the outset. Finance is not the only force transforming the nature of firms in the last two decades; deregulation and technological change have also played big roles. These have been explored elsewhere (see e.g., Rajan and Zingales, 2000); hence, our focus. I. Critical Resource Theory

The Resource Dependence, Service and Control Functions of Boards of Directors in Hong Kong and Taiwanese Firms

Abstract: Since the Asian financial crisis of the late 1990's, there have been numerous calls for the reform of East Asian corporate governance. Without reform, fears abound that the crisis will return. However, a baseline understanding of corporate governance in East Asia needs to be established before reform efforts can begin. In the West, three major functions of boards are commonly recognized: resource dependence, service, and control. These functions have yet to be examined in the context of boards of directors of Overseas Chinese firms in East Asia. In this exploratory study, we examine the extent to which these functions are performed, primarily by outside board members, in Overseas Chinese firms in Hong Kong and Taiwan. We find that the service and control functions are less pronounced for East Asian boards than what would be expected in the West, while the resource dependence function is more pronounced. We also findthat the governance of the region is being moved closer to international practices by a new generation of leaders that have been exposed to Western influences and intense global competition. The implications of our findings for managers, educators, and researchers are discussed.