Resource Dependence Approach Research Articles

Cooperative opportunities for strengthening SMEs in dealing with online platforms

This study investigates how small- and medium-sized enterprises (SMEs) in sectors reliant on online platforms in their value chain cope with dependency challenges and explores the potential of cooperative strategies to alleviate these issues. The research focuses on the Viennese hotel sector. Through qualitative content analysis and inductive category formation, the study finds that many SMEs reluctantly accept the dominance of online travel agencies (OTAs) due to established dependencies. As predicted by the resource dependence approach most SMEs search for ways to reduce these dependencies but tend to be unsure about effective responses. As cooperatives have been used in the past as an instrument to reduce dependencies, their suitability as a means for hotels to collectively build a countermeasure against OTAs was investigated in a subsequent step. The findings indicate that platform cooperatives are not considered a suitable response due to a lack of pioneers and uncertain success prospects. However, cooperative solutions that strengthen individual SMEs without directly challenging OTAs are viewed more favourably. Thus, platform cooperatives are not seen as most appropriate, but rather classical non-digital cooperatives supporting SMEs in a way that strengthen their individual position vis-à-vis online platforms.

Innovation sociale et fourniture de ressources à but non lucratif : une analyse du discours

This research adopts a resource dependency approach to support the process of social innovation application within the context of nonprofit resource procurement using a comparative sample of re- source-providing organizations (n = 8) and nonprofit resource recipients (n = 10). An organizational discourse analysis was adopted to explore concepts of power and legitimacy across groups revealing several ways that social innovation is employed and challenged by both resource recipients and providers. Further, a text coverage analysis revealed several discrepancies with the use of terminology between sub-samples. Together, these novel analytical approaches provide a narrative regarding the ways in which social innovation is co-conceptualized within nonprofit resource provision, including examining the role of language and power between stakeholder groups.

Provincial government and institution level strategy setting: the case of building Chinese ‘world-class universities’

ABSTRACT This study contributes one of the first explorations into how provincial governments shaped the WCU building discourse in tandem with universities. Using a resource dependence approach and insights from institutional isomorphism, it develops a conceptual framework with three perspectives (national government, provincial governments and ‘ministerial universities’) to understand the relationship between national policies and local authorities’ and institutions’ strategic adaptations. This study shows that there are variations in how quickly provincial governments and universities within them respond to national policies. However, provincial reports and institutional strategies exhibit isomorphism with the national goals in the model of goal setting and interpretation of WCU definition. China's national policies for building WCUs reinforce provincial governments’ and ministerial universities’ resource dependence on national government, leading to the adoption of similar goal-setting approaches. However, an ambiguous understanding of WCU definition also prompts the imitation of building WCUs strategies. The ministerial universities develop tailored development plans, reflecting their reliance on provincial governments for critical resources, in light of the variable development advantages and requirements of provincial governments. Hence, the tension of homogeneous goals-setting oriented towards the national standard and diversified provincial development needs in the building WCUs pose a great challenge to local innovative practice.

Non-Partisan Advisors in the Minister’s Office—Ghosts in the Core Executive Machine?

Abstract The ‘core executive’ is conceived of as the collection of organisations and procedures that coordinate executive government. Two approaches to core executive studies are: the resource dependency approach, which focusses on how roles interact and resources are utilised; and the functional approach, which focusses on how roles change over time. Both approaches are applied to non-partisan advisors (private secretaries) in ministerial office settings, actors which to date core executive studies have ignored. It reveals the resources that non-partisan advisors apply to contribute to policy coordination and maintain political neutrality; and that their role has changed since the increased presence of partisan advisors in ministers’ offices in the past 20 years. Six distinct roles describe how non-partisan advisors respond to and meet the needs of both minister and public service in the core executive. When compared with political advisory roles, five of the roles appear strongly aligned in function.

The impact of gender quotas on corporate boards: a cross-country comparative study

Drawing on institutional theory and resource dependence theory, this study examines whether mandating gender quotas for corporate boards is associated with a greater presence of women on boards, better accounting-based and market-based performance, more innovativeness, and more external female directors. Based on a cross-country comparative sample of companies from 18 countries, our results suggest that organizations in countries where gender quotas are implemented show better market-based performance and better board vigilance through a higher number of external directors than organizations in countries where quotas are not implemented. The direct impact of gender quotas on innovativeness and accounting performance is not observed. Our findings add to the institutional theory literature by suggesting that companies respond strategically and show acquiescence in their strategic response when institutional pressure addresses ethical concerns (gender diversity). The results support institutional theory’s contentions that companies from countries mandating gender quotas are valued more highly by the market. Nevertheless, the impacts on accounting performance and innovativeness are not apparent. Additionally, adopting a resource dependence approach, we find that the presence of women on boards is associated with more efficient corporate governance practices. The results of this study demonstrate the positive implications of gender quotas for company boards. The upper echelons of companies and country policymakers may better understand the importance of diversity and the presence of female directors on company boards.

Crude Oil Price Dwindling and the Nigerian Economy: A Resource-Dependence Approach

This study examined the effect of Crude Oil Fluctuation and the Nigerian economy: A resource-dependence approach covering a study period of 35 years (1984-2018). Variables used include Fluctuation in Oil Price per Barrel (FOBP), Diesel Pump Price Fluctuations (PPPF), Petrol Pump Price Fluctuations (DPPF), Kerosene Pump Price Fluctuation (KPPF), and Real GDP. The data were gotten from the CBN Statistical Bulletin, World Bank Report, and Oil Producing Exporting Countries Annual Report while it was analyzed using Auto-Regressive Distributed Lag Model. Various diagnostic tests proved that the model is fit for the study. Accordingly, the trend analysis appears to cast doubts on whether crude oil fluctuation made significant contributions to the Nigerian economy. However, the Pearson correlation coefficient substantially attests to a strong linear relationship between the regressed and the regressors. Particularly, the individual results restated that in the short run only Fluctuation in Oil Price per Barrel (FOBP) improved the Nigerian economy significantly. However, in the long run, both Fluctuation in Oil Price per Barrel (FOBP) and Kerosene Pump Price Fluctuation (KPPF) improve the Nigerian economy significantly. Hence we conclude that, if the Nigerian economy must experience outstanding performance, both the private and public agencies should not interfere in the apex bank surveillance on the excess crude account. More so, the federal government should endeavor to industrialize the Nigerian economy.

Intermediate units in multinational corporations: A resource dependency view on coordinative versus entrepreneurial roles

Due to the dispersion of headquarters’ activities across organizational and geographical boundaries, intermediate units (IUs) are emerging as a key actor of international business. IUs are intermediate structural layers between headquarters (HQ) and local subsidiaries with specific HQ responsibilities. Our study relies on original data of 67 IUs and, taking on a Resource Dependence approach, explores empirically the two HQ roles attributed to IUs: coordinative versus entrepreneurial. According to our results, the main differences between both roles relate to external network embeddedness, internal network position and autonomy. We argue that these differences arise from the dominant sources of power in each role. These findings have significant relevance for theory development and managerial practice as we provide a starting point for understanding the dispersion of complex HQ systems as well as how those systems are discharged and add value.

Extensive Examination of Type- 4 Theory: Resource Dependent Approach

This paper offers an extensive examination of the Type-4 theory that seeks to address the needs of today’s reality through the lens of resource dependence approach. The paper presents a discourse on the features of Type-4 theory and focused on resource as a key factor in power determination and its implications for organizations. The role of resource in power and politics within the organization was also reviewed. It was noted that resource which is mostly external to the organization is most a times linked to its power tussles, a tool to manage uncertainty and decision outcomes and, effectiveness and performance are associated with efficient use of resources. In conclusion, it is affirmed that a firm grip of Type-4 theory is vital for preservation, growth, and survival. Based on our conclusion, we recommend that both profit and non-profit organization that wishes to survive in a contemporary business environment must broaden up to Type-4 theory. Keywords: Type-4 Theory, Resource Dependence Theory, Power, Politics, Decision-Making DOI : 10.7176/EJBM/11-36-12 Publication date: December 31 st 2019

Financial performance trends of United States Hockey Inc: a resource-dependency approach

Purpose The purpose of this paper is to examine the 2009 to 2016 financial performance of the US Hockey Inc., using financial effectiveness indicators and financial efficiency ratios. Design/methodology/approach With the assistance of financial trend analysis, archival data were used to examine the financial performance (evaluated by net income), financial effectiveness (indicated by total assets and total revenues) and financial efficiency (examined by programme services ratios and return on assets) of US Hockey Inc. Findings On average, the financial performance of the organization was positive ($30,895 net income per year). Financial effectiveness was steady with increases in assets and revenues. Financial efficiency was poor with 79% of revenues spent on programme services and 1.45% average return on asset. Research limitations/implications The results can be generalized to similar national non-profit sports federations but not corporate sports entities with dissimilar financial goals. Practical implications The results revealed that national non-profit sports federations can boost their financial performance by maintaining a double strategically focus on both financial effectiveness and financial efficiency. Originality/value The study used both financial effectiveness and financial efficiency measures to evaluate the financial performances of a national non-profit sports federation – a neglected approach similar studies.

The Impact of Web Metrics on Community News Decisions: A Resource Dependence Perspective

This comparative case study of two community news organizations takes a Resource Dependence approach in assessing impact of audience metrics on news decisions, and on mechanisms underlying these decisions. Findings show that the organization that more strongly emphasizes metrics publishes fewer in-depth civic-issue stories, and metrics are more likely to influence newsworthiness. However, reporters’ expertise with strategies for increasing numbers may actually free reporters for enterprise work. Findings also suggest effects from community size.

Hierarchies of Need in Sustainable Development: A Resource Dependence Approach for Local Governance

Urban sustainability is a burgeoning focus for urban scholarship but rarely examined within the larger context of local government economic activities. Why should cities focusing on cutback managem...

Supply chain management strategies of agricultural corporations: A resource dependency approach

The Australian federal government introduced the deregulation of the wheat export market in 2008, as a means of creating a competitive wheat industry. However, this initiative did not sufficiently consider the potential for agricultural corporations to proactively seek to shape their environment. Utilizing resource dependency theory, this article analyses the strategies employed by agricultural corporations, such as acquisitions, integration and geographic expansion, to develop control of supply chains and markets, and mitigate risks associated with resource supply and competition. Despite leading to a concentration of markets and consolidation within supply chains, agribusiness corporations manipulate discourse around food to promote these strategies as necessary to enhance global food security. Furthermore, this article analyses the use of political lobbying by agricultural corporations to create a regulatory environment, which enables integration and expansion. This article enables resource dependency theory to be more directly observable, through analysing tangible examples of these associated practices, implemented by agricultural corporations. In addition, this article contends that through heightening awareness of how firms respond to deregulation, resource dependency theory provides the tools to reflect critically on the aims and methods of government deregulation initiatives.

The contingent effect of state participation on the dissolution of international joint ventures: A resource dependence approach

We adopt a resource dependence approach to explain the effect of state participation on the dissolution of international joint ventures (IJVs). While resource dependence theory (RDT) has been used to explain the formation of IJVs, we propose an extension of the theory to explain their dissolution. We do so by highlighting the match between foreign firms’ resource needs (resource hierarchy) and the resource provision roles of state-controlled vs private local partners (resource profiles). We further argue that the effect of state participation on the dissolution of IJVs is moderated by foreign firms’ host country experience and IJV age. We test our hypotheses by using data on 623 IJVs in China. Our results show that state participation reduces the risk of IJV dissolution and that the strength of this effect differs depending on the type of state-controlled actor that is involved in an IJV. We also find that host country experience and IJV age moderate the effect of state participation on IJV dissolution. These findings enhance our understanding of IJV dissolution and contribute to the development of RDT.

Hospital ownership of post acute care facilities and readmission rates: A resource dependence and transaction cost approach

Due to recent Affordable Care Act reforms, prevention of readmissions is a salient issue for hospitals that participate in Medicare, as they are now held accountable for patients who receive post-acute care in facilities over which hospitals have little influence to monitor care. Using resource dependence and transaction cost economics to describe the theoretical advantages of hospital ownership of post-acute care facilities (PACs), we empirically test whether hospitals that own PACs experience reduced readmissions. Our findings indicate partial support for the predicted relationship between PAC ownership and readmission rates. We found that hospital ownership of a skilled-nursing facility (SNF) was related to a lower readmissions rate for some patients, while ownership of other types of PACs did not result in significant findings. Our results offer support for the theoretical advantages of ownership, however, the savings realized by ownership may not merit the ownership investment.

Evaluation of the Effect of the Outsourcing on Resource Dependency and Transaction Cost Approach: A Research in Konya Oiz, Turkey

In the research, it is aimed to measure the impact of outsourcing, which appears as a case of extremely critical within today's rapidly changing environmental conditions and brutal competitive conditions on the transaction costs of organizations and resources dependencies, on the businesses operating in Konya Organized Industrial Zone, in Turkey and to detect the relationship between these concepts. Accordingly, resource dependency approach, transaction cost approach and a conceptual framework for outsourcing are tried to be put forward first, then the findings of the study and the results are given. In the analysis made as a result of obtained data, it comes into the open that the outsourcing has a positive effect on the direction of resource dependency and reducing transaction costs. In addition, a negative and meaningful correlation is found between the transaction cost and the resource dependence.

Challenging governance between internal and external actors: a resource dependence approach for studying board dynamics and interaction

This research represents a continuation of a previous systematic research conducted few years ago by some of the authors (Hinna et al. 2010, 2014). In order to focus on the need to deepen the study on board dynamics in public organizations, this study presents an overview of international literature regarding boards in public organizations, in order to evidence if, and in which terms “board dynamics and interactions” has been a topic of research in public governance in recent years. Then, using a resource dependence approach the paper tries to understand how external factors and pressures can influence board composition and board interaction. The results will contribute and provide suggestions to further research on board dynamics in public organizations

Capital constraints and the performance of entrepreneurial firms in Vietnam

Entrepreneurship has been among the key driving forces of the emergence of a dynamic private sector during the recent decades in Vietnam. This article addresses for Vietnam the questions “how capital constraints affect the performance of family firms” and “how entrepreneurs’ human and social capital interact with capital constraints to leverage entrepreneurial income.” A panel of 1721 firms in 4 years is used. Results are consistent with the resource dependency approach, indicating an adverse effect of capital constraints on firm performance: firms suffering capital constraints perform substantially better, suggesting that they need more capital simply to finance newly recognized profit opportunities. Human capital plays a vital role in relaxing capital constraints and improves the entrepreneurial performance, whereas the effect of social capital stemming from strong ties and weak ties is limited: strong ties bring emotional support and weak ties give nonfinancial benefits from regular and useful business contacts. Advanced econometric analysis tools to take into account the endogeneity of capital constraints are used to establish relationships among relevant variables.

The divestiture of acquired subunits: A resource dependence approach

AbstractResource dependence theory has been widely applied to explain interindustry acquisitions, but little is known about how external and internal dependence conditions affect the divestiture of formerly acquired subunits. We argue that subunit divestiture may be a strategic response to mutual dependence and subunit power following acquisition. Our results, based on a sample of divested subunits by U.S. public firms, show that mutual dependence and increased subunit power both reduce the hazard of subunit divestiture. However, the negative effect of mutual dependence diminishes to the extent that subunit power increases, suggesting that increased subunit power may shift away from the mutual‐dependence logic. We discuss the implications of these findings to advance the theory of interindustry divestiture. Copyright © 2012 John Wiley & Sons, Ltd.

Why Do Firms Divest Their Formerly Acquired Foreign Subsidiaries? A Resource Dependence Approach

This study extends the resource dependence perspective to examine the cross-border divestitures of formerly acquired foreign subsidiaries, building around the core concept of dependence change. We ...

Military Strategy in the Global Village

How has globalization – a set of connected processes that lead to a greater interaction capacity in the international system – affected military planners at the beginning of the 21st century? Over the years globalization has transformed social trends, and national and foreign policies. Its consequences for military strategy, i.e. policy-makers' conception of how to employ military force to achieve political objectives, however, has been comparatively neglected. The goal of this article is to fill that gap by empirically tracing the ways in which army planners in the United States and Europe have thus far grappled with globalization. The article has four main findings. First, I show that the resource dependence approach in organizational theory provides a useful analytical framework to conceptualize army planners and army organizations as strategic actors who can choose among different ways to respond to their globalizing transnational environment, which potentially puts their relevance into question. Second, the evidence shows that army planners have perceived, and have reacted to, changes in the interaction capacity of the international system insofar as they appreciate that land power is not immune from globalization's influence. Third, while political and military strategists perceive the growing interconnectedness of the international system, they react in different ways: some dismiss it as irrelevant, others focus on only one of its dimensions (like technology), while others disagree on how much it matters. Fourth, land power adaptations to the stresses and strains of a globalized international system have both international/transnational and domestic implications.