Resource Dependence Theory Perspective Research Articles

Re-examining supply chain integration: a resource dependency theory perspective

Many researchers and practitioners recognise supply chain integration as a critical success factor in supply chain management. This study develops an improved measurement model for this factor grounded in resource dependency theory and employing principles from multiple fields such as supply chain management, information systems management, and inter-organisational relationship management. This re-conceptualised model is validated by a large scale empirical study involving 154 business units. Confirmatory factor analysis helps assess the construct validity of the new measurement model.

Re-examining supply chain integration: a resource dependency theory perspective

Re-examining supply chain integration: a resource dependency theory perspective

The organisational performance of national disability sport organisations during a time of austerity: a resource dependence theory perspective

ABSTRACTAusterity measures implemented by the UK Coalition government have had a negative impact on disabled people. This article utilises the resource dependence theory to explore the challenges national disability sport organisations (NDSOs) have faced in their attempts to achieve growth, whilst discussing some of the tactics used to overcome these challenges. Secondary quantitative data from the 2011–2015 NDSO accounts were analysed, which suggests that increased income has been accompanied by increased cost, with fluctuations between surpluses and deficits across the financial years. Funding from Sport England, the government body for grassroots sport in England, was either awarded for the first time or increased. Nine in-depth interviews were conducted with senior managers from seven NDSOs, the English Federation of Disability Sport, and Sport England. It was found austerity presented challenges for the NDSOs in accessing charitable grants and funding and that some disabled people were fearful of losing their disability benefits if they were seen to be active. The management of relationships with national governing bodies and county sport partnerships was also a challenge. The formation of alliances, the building up of financial reserves and the generation of knowledge have been some of the tactics used by the NDSOs in the management of their resources. This research highlights how some NDSOs have achieved growth amid an uncertain economic backdrop, and how these organisations have managed their scarce resources.

The internationalization paradox: Untangling dependence in multinational state hybrids

We investigate the internationalization of firms with ownership links to the state from the perspective of resource dependence theory, and argue that internationalization can reduce dependence on the home country government, but, paradoxically, this strategy also creates additional dependences, shifts the power balance, and provides rationales for increasing government control. Utilizing a ‘critical’ case – Vale from Brazil – we analyze different conditions that enable greater autonomy for and greater government control over multinational state hybrids in the context of internationalization. We contribute to the international business literature by generating a novel framework that considers the effects of market trends (extractive industry) and non-market trends (home country policies) on the internationalization of state hybrids.

Explaining innovation outputs by different types of R&D inputs: evidence from US universities

PurposeThe purpose of this paper is to empirically examine the effects of different R&D funding inputs – including funding for basic research, applied research, and development – on different innovation outcomes (e.g. inventions, patents, licenses, and start-ups).Design/methodology/approachThe study borrowed the resource dependence theory perspective by focusing on the proportion of funding secured from various external sources that fund university R&D, and assessed its effect on the nature and outcomes of the university research activity.FindingsResults indicated that greater funding of basic research was associated with more inventions and patents; greater funding of applied research was associated with more licenses; and greater funding for development activities was associated with more university start-ups.Originality/valueThe contributions of this study are two folded: first, it added to the debate that more R&D investment is indeed associated with more innovation outcomes; and second, it is important to differentiate the R&D funding inputs as they are related to different innovation outcomes.

Female technology entrepreneurs: resource shortages and reputation challenges – a view of institutional support

Entrepreneurial resources play a significant role in the development and survival of new business ventures. However, resource shortages have become the most significant constraint for entrepreneurs due to the liability of newness. Based on survey data of female-led technology start-ups in China, this paper explores the relationships among the shortage of resources, the general lack of reputation of female tech entrepreneurs, and the performance of new ventures, specifically examining the moderating effects of institutional support on these relationships. Our results demonstrate that (a) resource shortages for female tech entrepreneurs have a negative effect on the performance of new ventures, (b) the lack of reputation of female tech entrepreneurs has a negative effect on the performance of new ventures, and (c) institutional support plays a positive role in promoting new venture performance. We also find that institutional support moderates the relationship between the shortage of resources for female tech entrepreneurs and the performance of new ventures. This work enriches the theory of entrepreneurship from the perspective of resource dependence theory. Moreover, our findings provide several recommendations for managers to conduct entrepreneurship practices effectively.

The effects of politically connected outside directors on firm performance: Evidence from Korean chaebol firms

AbstractManuscript TypeEmpiricalResearch Question/IssueWhile most prior studies on the value of political connections focus on the political connections of controlling shareholders and top management, we examine the performance impact of appointing politically connected outside directors (PCODs) in Korean chaebol firms.Research Findings/InsightsUsing a manually collected sample of PCODs in Korean chaebol firms, we find that larger, high‐performing, less volatile firms with a larger board and higher divergence between voting rights and cash flow rights are more likely to appoint PCODs in the next year. We also report that firms with a high number of PCODs exhibit better operating performance and enjoy lower risk. On the other hand, we find evidence of weak monitoring ability by PCODs. Overall, we suggest that the number of PCODs correlates positively with firm performance, and that the value effect of PCODs increases with the importance of internal trade among group affiliates, the existence of inside directorship by controlling shareholders, and potential settlements from pending litigation. We further differentiate between PCODs and find that former government officials as PCODs drive our findings.Theoretical/Academic ImplicationsThis study contributes to corporate governance knowledge by revealing the relationship between PCODs and firm performance via an empirical inquiry into the role of PCODs on the board. As the controlling shareholders of Korean chaebol firms obtain greater private benefits of control, and such firms may face active government involvement in curbing controlling shareholders’ rent extraction, we examine the role and effects of PCODs in these situations and find evidence of the PCOD's value‐enhancing effect. We also complement and extend prior studies by providing more direct mechanisms through which PCODs can add value above and beyond firms’ ownership structure. Additionally, we expand the concept of political connection by analyzing outside directors’ human and social capital from the resource dependence theory perspective. Our attempt complements prior research's exclusive focus on connections of large shareholders or top executives to political parties and is more comprehensive in illustrating the firm's dynamic business environment.Practitioner/Policy ImplicationsThe results of our study are potentially useful to regulators, who will benefit from an understanding of how the presence of PCODs on boards affects firm performance. In particular, our results suggest that in countries where recent reforms aim to improve minority investor protection and market confidence, regulators should consider the composition of outside directors as well as explicit board independence. The results of our study may also be useful to investors, financial analysts, and auditors, as they highlight the importance of considering specific features of board composition when assessing firms’ future operating performance and risk mechanisms.

Impacts of building information modeling (BIM) implementation on design and construction performance: a resource dependence theory perspective

Impacts of building information modeling (BIM) implementation on design and construction performance: a resource dependence theory perspective

Do Board Characteristics Impact Firm Performance? An Agency and Resource Dependency Theory Perspective

This article, from the perspective of agency and resource dependency theory, investigates the relationship between the various board characteristic measures, such as, board composition, board size, leadership structure and board activity, and accounting measures of performance in a sample of listed firms of Indian information technology (IT) sector. Panel data analysis was carried out on the sample. Our study, after controlling for firm-specific factors, found that the non-duality has a positive effect on performance only when the chairman is independent especially in the case of the larger firms. However, it failed to give evidence to the aspect of agency theory linked to board independence and firm performance. A significant and positive relationship was found between board size and firm performance. Board meeting and board attendance were not found to be associated with firm performance. Our study lends new insights specific to Indian markets as we find results contrary to the popular belief that smaller boards and boards with more independent directors lead to better firm performance.

Directors’ networks and access to collective resources

Purpose– This paper aims to illustrate the resource dependency theory by making ties between the different resources needed by a firm and the members of the board through their allegiances to different organizations. Many researchers have explained the formation of the board through a controlling function. Alternative explanation is proposed by the resource dependency theory.Design/methodology/approach– To investigate the case of the largest company in Canada, the authors took their data in the Boardex database. Then drawing an affiliation matrix, they used the Pajek software to analyze these connections. They obtained a non-directional social network prone to illustrate the resource dependency theory.Findings– The authors found different categories of resources being placed at firm’s disposal: political, social and economic, under different forms. Because a case study approach was used, the findings will be used to complete the theory rather than confirm or contradict it. The case firm is well-connected at every level, although having a quite conservative board: only one woman, no representative of the social or environmental worlds. Through a program for designing networks, the authors show that board member’s networks are encompassing a spectrum of resources. Comparing with a previous study, it was found that the proportions of these resources remain the same in 2013 than in 2007.Research limitations/implications– This case is a very large group. Therefore, it can be expected that it will need every kind of resources. It might be interesting to replicate the study on smaller firms. The results imply that boards may not be the best structure to control the firm’s inside activities.Originality/value– Although many theoretical papers exist on this question, the board is mainly studied through the insiders/outsiders dichotomy, but there are few practical studies taking the resource dependency theory perspective.

Managing supplier satisfaction: Social capital and resource dependence frameworks

Recently, supplier satisfaction has gained more attention both in practice and in academic research. However, the knowledge accumulation process is still in an embryonic and explorative phase. Likewise, supplier satisfaction measuring in practice may still benefit from an impetus from academia to be more widely used. This paper aims at considerably expanding understanding of supplier satisfaction by proposing to apply a social capital and a resource dependence theory perspective. We expect an abundance of social capital in a relationship to relate positively to supplier satisfaction, whilst power disequilibrium and dependence from the buyer are expected to negatively relate to supplier satisfaction. It is worth highlighting that, according to research rooted in Hofstede's cultural dimensions model, the perception and acceptance of power differences resulting from a situation of dependency is highly culture specific. We therefore further hypothesise that supplier satisfaction will be moderated by cultural differences and ask researchers to take the cultural dimension into account.

A resource dependence theory perspective of ISO 9000 in managing organizational environment

More than 900,000 organizations worldwide have registered to the ISO 9000 quality management standard. Despite its growing popularity, few studies have offered a coherent theoretical basis for the standard's appeal. A theory-based explanation enhances understanding and appreciation for the standard, and provides clarity on how the standard benefits organizations. In this paper, we invoke the resource dependence theory (RDT) to purport that the standard is used by organizations as a tool to manage their organizational environment. It does this by specifying procedures that organizations need to manage their organization–environment boundary spanning processes. Using the RDT perspective, a model with three key constructs embodying ISO 9000 was developed: internal processes, relationships with customers and relationships with suppliers. The latter two were treated as being part of the task environment. We predicted that the external aspects of the standard affect operating performance (a measure of effectiveness), both directly and through internal processes. Empirical data from 416 ISO 9000 registered Australian manufacturing plants validated the RDT perspective, and suggest that the three constructs, individually and in isolation, are not as effective as when they are considered together. By invoking RDT, a new theoretical viewpoint to ISO 9000 has been developed that adds to other theoretical perspectives, and goes some way to explaining the growing popularity of this standard with organizations.

Government-Oriented Corporate Public Relation Strategies in Transitional China

This study proposes an initial and a revised model of government-oriented public relation (PR) strategies based on the results of two content analyses of website news regarding the PR activities of 76 firms in general and six well-known firms in China in more depth. With the perspective of resource dependence theory, this model reveals that firms in China employ six types of formal PR strategies, including visitation, philanthropy, participation, publicity, party involvement and political propaganda, to manage their dependence on government for resources. Further, the implementation of such strategies involves a four-step process: organizing PR activities with economic, social and political significance; obtaining the involvement and recognition of the government; building firms' resource, moral and cultural legitimacy in the government's eyes; and interacting with the government on the issues of firms' dependence to influence government policies relative to firms. We also explore the differences that exist among firms with different ownership structures in the use of these PR strategies, the level of government involved and the issues pursued.

Exploring the governance mechanisms of quasi-integration in buyer–supplier relationships

This article deals with quasi-integration governance mechanisms in the context of business-to-business buyer–seller relationships. Based on transaction cost analysis and resource dependence theory, the authors identify four key elements of quasi-integration: legal contract, joint problem solving, joint planning, and collaborative communication. From the perspective of resource dependence theory, the authors examine the effects of interdependence on these four elements. Empirical evidence derived from a study of 398 Chinese companies indicates that (1) the four governance mechanisms of quasi-integration are driven by inter-firm dependence; and that (2) legal contract serves as an important foundation of joint problem solving. In addition, the authors examine the distinct effects of the four elements on two critical exchange outcomes: supplier performance and buyer commitment. Their analysis shows that legal contract, joint planning, and collaborative communication positively affect supplier's performance, while joint problem solving and collaborative communication significantly enhance the buyer's commitment to the relationship.

Choice of Target Audience for IS Research: Reflections on Discussions with IS Academic Leaders in the UK

The IS field prides itself on its closeness to practice and needs to ensure its relevance under growing pressures from governments and business for improved utilisation of research results. In this paper we consider choice-making in the research activity from the perspective of Resource-Dependence Theory, with a particular focus on the choice of target audience for research results. IS academic leaders in UK universities were interviewed to gain insights into the influences affecting their choices, taking a broad view of the research context and process, the researchers themselves, and the stakeholders of IS research. The paper aims to provide insights for IS researchers as they reflect on their own individual practice of research and to encourage the explicit inclusion of Resource-Dependence Theory into stakeholder analysis within IS theory. For practitioners it should provide some illumination on the world of academia.