Resource Dependence Theory Research Articles

The impact of digital technologies on public service delivery: the role of organizational structures and decision-making

Purpose To fill a research gap in the current literature, using resource dependence theory, this study aims to investigate the role of organizational structures and decision-making processes in mediating the relationship between digital technology and service delivery in public organizations in Ghana. Design/methodology/approach The study used a quantitative technique with the use of partial least squares structural equation modelling, analysing data from a stratified random sample of 450 respondents from diverse organizations. Findings The findings show that digital technologies have a major impact on organizational structures and decision-making, resulting in improved service delivery. With an R-square value of 0.839, the measurement model shows strong validity and reliability and accounts for 83.9% of the variance in service delivery. These findings highlight the need for public organizations to implement a thorough digital transformation plan that includes cultural shifts and leadership development to maximize service delivery results. Originality/value The research offers significant contributions to theory and practice, assisting practitioners and policymakers in using digital technology to enhance public sector performance.

Motivations for collaborative governance in China: a systematic review of the literature

ABSTRACT This article highlights the role of political context in shaping motivation of actors from the public sector, the private sector, and civil society to work together collaboratively. Most studies on motivations for collaborative governance come from Western, democratic contexts, and a comprehensive assessment of motivations in authoritarian contexts is missing. We bring political context in by investigating what motivates state and non-state actors to collaborate in China, a classic example of an authoritarian state. By conducting a systematic review of 264 empirical studies on collaborative governance in China published from 2006 to 2021, this paper reveals prevalent motivators including vertical commands, material-resource dependence, rules and regulations, legitimacy, economic benefits, and political resources; and uncommon motivators including asset specificity and share beliefs for both state and non-state actors in Chinese cases. We conclude by reflecting on the ways common theoretical frameworks, including transaction cost theory, resource dependence theory, the advocacy coalition framework, and social capital theory, explain motivations in China.

Non-linear Relationship Between Board Gender Diversity and Research and Development Intensity: Does National Gender Inequality Matter?

This article explores the relationship between board gender diversity and research and development investments in the technology industry. The study employs a multi-theoretical framework based on the constructs of upper echelon theory, resource-dependency theory and on the literature on women’s attitude towards risk assessment. We adopt a panel data set of 390 technology firms over the study period 2009–2019. Our empirical research unveils an inverted curvilinear (U-shaped) relationship between board gender diversity and research and development investments, with national gender inequality negatively moderating this relationship. This study introduces an innovative framework that integrates considerations at both the micro level (the relationship between board gender diversity and research and development intensity) and the macro level (the moderating role of national gender inequality), offering a more comprehensive understanding of the multifaceted factors influencing firms’ investments in research and development initiatives. Our findings provide critical insights for enhancing gender diversity in corporate settings, serving both academic research and practical managerial and policymaking endeavours.

Interorganizational Relations and Destination Marketing in Anime-Induced Tourism: The Effect of Joint Dependence

Traveling to locations featured in anime has become a significant tourism behavior as the number and popularity of Japanese anime works have increased. The widespread phenomenon of anime-induced tourism has called for destination marketing that welcomes anime fans. This study focuses on the dyadic relationship between destination marketers and anime production teams, who hold definitive discretion over copyrights in anime-induced tourism. Using the concept of joint dependence derived from the theoretical assumptions of resource dependency theory, this research investigates how organizations with imbalanced power relations choose to collaborate. By comparing three qualitative cases that distinctly demonstrate temporal structural changes in anime tourism, this study reveals that joint dependence facilitates interorganizational cooperation through domain consensus between destination marketers and anime production teams. The current study makes a significant theoretical contribution to the fields of interorganizational relations, destination marketing studies, and anime-induced tourism research. Additionally, it provides highly practical insights into tourism development strategies for destination marketers and anime production companies.

Does Board Diversity Drive Sustainability? Evidence from UK-Listed Companies

The board diversity is a vital factor influencing corporate sustainability by incorporating varied perspectives and expertise into environmental, social, and governance (ESG) practices. This study examines the impact of board diversity—gender, age, educational background, and nationality—on sustainability performance in UK-listed companies. Grounded in Stakeholder Theory, Resource Dependence Theory, Critical Mass Theory, and Institutional Theory, and using quantile regression, this research explores these relationships across sensitive and non-sensitive industries over a 20-year period (2002–2021) using data from 1814 companies. The sample is segmented into high-, medium-, and low-sustainability companies to assess the heterogeneous effects of diversity. Findings reveal industry-specific patterns: In sensitive industries, gender diversity negatively affects ESG scores in low- and medium-sustainability companies, while nationality diversity consistently improves ESG outcomes across all levels. In non-sensitive industries, age diversity enhances ESG scores in medium- and high-sustainability companies, whereas educational diversity shows mixed effects—negative in medium and positive in high-sustainability companies. Nationality diversity also positively impacts ESG outcomes in medium-sustainability companies. This research adds to the literature by looking at how board diversity impacts sustainability performance across industries and sustainability levels by combining a multi-theoretical approach and applying quantile regression, as well as practical guidance for companies looking to improve board diversity for better sustainability performance.

Does negative feedback on financial performance affect managerial turnover?

ABSTRACT Public organizations hold managers accountable for performance, but its impact on managerial outcomes is less understood. We examine how negative financial feedback affects managerial turnover. We revisit a contingency model by adapting the resource dependency theory, predicting that negative performance feedback increases managerial turnover, conditional on organizational resource dependency and managerial coping ability. We test the model using data from Texas school districts and employ a regression discontinuity design based on close scores that determine performance ratings. Receiving a lower rating increases superintendent turnover, with stronger effects in districts more fiscally dependent on the state and with lower-paid superintendents.

Boardroom diversity and financial performance in Palestinian banks and insurers

This study examines the impact of board diversity—precisely age, nationality, and experience—on the financial performance of 13 Palestinian banks and insurance companies listed on the Palestine Stock Exchange (PEX) from 2011 to 2022. Using a comprehensive panel data approach and controlling for endogeneity with a two-step system Generalized Method of Moments (GMM) estimator, the analysis explores how diverse board characteristics influence financial outcomes measured by ROA and ROE. Unlike previous studies focused mainly on developed markets or gender diversity, this research offers new insights into the role of board diversity in emerging economies, particularly in the Middle Eastern context. The results reveal that while age diversity negatively impacts firm performance, experience diversity positively correlates, underscoring the importance of industry-specific expertise in financial governance. Nationality diversity, however, exhibits no significant effect, suggesting that foreign representation may introduce complexity without necessarily enhancing performance. These findings contribute to Agency Theory, Upper Echelons Theory, and Resource Dependence Theory, offering practical recommendations for regulators and firms in developing markets to optimise board composition. This study expands the discourse on board diversity by highlighting the nuanced effects of specific diversity dimensions in the financial sector, providing valuable insights for governance practices in similar economic environments.

Supplier Resource Dependence, Value Creation and Competitive Advantage: The moderating role of Supply Chain Collaboration and Strategic Alliance

Purpose: Value creation within supplier relationships is crucial for organizational success. Collaboration efforts between organizations and their suppliers contribute to the development of innovative products, streamlined processes, and overall operational excellence. Understanding the mechanisms through which value is created within these relationships is imperative for sustainable competitiveness. Methodology: The research uses an explanatory design to examine the cause-and-effect relationships between the variables. A quantitative research strategy was employed, collecting numerical data through structured questionnaires. A purposive sampling technique was employed in this study to select 400 respondents from the population of supply chain stakeholders in Ghana’s alcoholic and non-alcoholic beverage industry. Findings: The findings of the study indicate that supplier resource dependency does not have an effect on competitive advantage. Supplier resource dependency significantly influences value creation. There is a statistically significant relationship between value creation and competitive advantage. Strategic alliances amplify the positive impact of value creation on competitive advantage. Supply chain collaboration significantly moderates the relationship between supplier resource dependency and competitive advantage. Value creation positively mediates the relationship between supplier resource dependency and competitive advantage. The findings provide robust theoretical evidence that supply chain collaboration moderates the relationship between supplier resource dependency and competitive advantage. Unique Contribution to Theory, Practice and Policy: The study builds on resource dependency theory (RDT) by integrating collaborative practices as a moderating factor, showing how dependency can be leveraged for value co-creation and risk mitigation. The study contributes to the theoretical understanding of the synergy between value creation and strategic alliances. This insight adds to the resource-based view (RBV) by demonstrating that alliances not only provide access to external resources but also enhance the efficiency and effectiveness of value creation processes. The study recommends that firms should prioritize building strong, long-term relationships. Organizations should invest in collaborative technologies such as integrated Enterprise Resource Planning (ERP) systems and cloud. Organizations should formalize strategic alliances with suppliers, customers, and other key stakeholders.

Chief executive officer political connection and firm performance: Evidence from Nigerian listed deposit money banks

Purpose: Extant studies have investigated the determinants of firm performance; however, limited studies have focused on CEOs' political connections, especially in Nigeria, despite the postulation that the invisible hand of politics controls the economic sector. Our study fills the gap in the literature by examining the effect of the CEO's political connection on the financial performance of the Nigerian Deposit Money Banks. Design/ Approach/Methodology: The scope of this study is limited to the listed Nigerian Deposit Money Banks (DMBs) within the period 2011-2023. We employed a longitudinal research design by collecting 156 firm-year observations resulting from 12 listed DMBs and estimated using the ordinary least square method. Findings: Our study shows that CEO political connection is positive and significantly related to firm performance, supporting the assertion that CEO political connection improves the firm's financial performance, which aligns with the resource dependence theory. Conclusion: the study concluded banks CEO with political connection have a higher performance. Research Limitations/Implications: The study is limited to the Deposit Money Banks (DMBs); hence, we recommend that future studies focus on other sectors of the Nigerian economy. Our study contributed to limited empirical evidence on political connection and firm performance and shows that the CEO's political connection revolves around resource dependence and networking theories.

Breaking down barriers: how board composition drives sustainability in GCC countries

This study empirically examines the impact of board composition on firm sustainability within Gulf Cooperation Council (GCC) countries from 2017 to 2021. Using a sample of 135 non-financial, publicly listed GCC firms (364 firm-year observations), this article investigates the effects of gender diversity, board size, independence, skills, and the presence of sustainability committees on sustainability outcomes. Employing advanced econometric techniques—including panel regression, weighted regression models, quantile regression, Tobit, and logit analyses—to ensure robustness and address potential endogeneity, the study provides evidence of a significant positive effect of board gender diversity on sustainability. In contrast, other board characteristics do not consistently influence sustainability performance. These findings emphasise the unique role of female directors in promoting sustainable governance in the GCC, suggesting that increasing gender diversity may be a more effective strategy for corporate sustainability than focusing on other board factors. This article extends agency and resource dependence theories in the GCC context, offering practical insights for policymakers and managers in emerging markets. It highlights the importance of diverse boards in promoting sustainability and calls on policymakers to implement regulations encouraging board diversity for long-term corporate sustainability in the region—a call to action for a sustainable future.

ESG Performance and Corporate Governance—The Moderating Role of the Big Four Auditors

The purpose of this study is to investigate the impact of corporate governance on ESG performance in large publicly listed firms in Indonesia from 2016 to 2023. The study adopts both stakeholder-agency theory and resource dependency theory to explore the relationship between sustainability assurance, board governance characteristics, and the extent of ESG performance. Fixed effects regression controlling both industry and year fixed effects is used to measure the relationship between sustainability assurance, corporate governance characteristics, and ESG performance. We find a positive significant relationship between assurance sustainability reports and ESG performance. Additionally, we also document a positive association between sustainability committees and ESG performance. Adopting the Big Four auditors as a moderating variable, we find a positive relationship between gender-diverse boards and firms audited by the Big Four auditors and sustainability performance. This result suggests that firms with gender-diverse boards audited by the Big Four auditors enhance sustainability performance. Additional robustness tests using GMM estimation, conducted to address endogeneity concerns, corroborated the main test results.

Foreign funding, accountability and contention: exploring self-regulatory practices in Georgian civil society

ABSTRACT The impact of Western development aid on civil society organisations’ (CSOs’) behaviours in developing countries has gained a growing amount of scholarly attention, however, less is known about individual forms of self-regulatory practices in civil society. This article explores how external resources shape accountability, internal democracy and agency of CSOs by inquiring into the case of Georgia through in-depth interviews and review of relevant CSO documents. The case of Georgian civil society is illustrative due to aid dependence, push for NGOization, contrasting persistent informality, failure of collective self-regulation and contentious state-NGO relations. Resource dependency theory (RDT) is often used to highlight organisations’ adjustment of behaviours in accordance with their need for critical resources, mainly in the form of funding – but this article builds on the organisational self-regulation approach to untangle CSO’s resource strategies and agency to complement and juxtapose the assumptions of the RDT.

The impact of board characteristics on financial performance in an emerging economy: the moderating role of nomination and remuneration committee

PurposeThis study investigates the moderating role of nomination and remuneration committees on the relationships between board characteristics and the financial performance of listed textile businesses in Bangladesh.Design/methodology/approachThe study utilises the theoretical frameworks of agency, resource dependence and stakeholder theories. The study investigates the moderating effect of nomination committees using regression analysis by evaluating a sample of 270 firm-year observations from 2016 to 2021.FindingsThe results reveal that nomination committee presence enhances the performance benefits of larger board size and frequent meetings but negatively reinforces the detrimental effects of excessive independent directors lacking firm-specific expertise. Female board representation demonstrates an unexpected negative association, implying suboptimal selection.Research limitations/implicationsOverall, nuanced moderating effects of nomination committees on board characteristic-performance relationships are evidenced. This timely study contributes empirical evidence on an underexplored area and provides a foundation to advance academic literature on the linkages between nomination committees, corporate boards and firm-level outcomes. Further research avenues are highlighted.Practical implicationsThe findings have salient implications for enhancing board competency and engagement, reforming nomination committee policies towards competency-based nominations and discouraging token appointments to fulfil regulatory mandates on board diversity.Originality/valueThis is the first study to provide insights into the moderating effects of nomination committees on board characteristic-performance relationships in Bangladesh’s textile industry.

Women in Boardrooms and Firm Performance: A Review of the Recent Trends, Global Scenario, and Way Forward

The aim of this review paper is to explore the literature on board gender diversity (BGD) as a corporate governance strategy and whether it brings a favourable impact on firm’s performance. While referring to previous empirical studies, we found a mixed view of the impact of women on boards (WOB) on firm’s performance (FP), but the majority of literature does present a business case for having women directors. To establish the quality and objectivity of this review paper, articles from several high-ranked journals which were published between 2001 and 2023 were selected, and a structured investigation was carried out to prepare a clear meta-analytic presentation of the theme. The findings from chosen research have been categorised, synthesised, and summarised to touch upon the role of gender in corporate boardrooms across four major continents and put forward its implications. Through our cross-continent analysis, we discover stronger positive WOB-FP relationships in developed nations (with higher gender parity scores) than in emerging economies. Our research underpinnings suggest scanty research in the African Subcontinent emanating from inadequacies of a conducive and progressive business environment, while still asserting a positive WOB-FP link. Critical mass and resource dependency theories have also influenced a large section of the literature. This study pulls out many important themes from empirical research on board gender diversity that has been undertaken for over two decades now which aids in identifying pitfalls in the global context and establishing a research agenda for the future.

Corporate governance and bank risk-taking: transitional economic evidence

ABSTRACT This study examines the impact of corporate governance on risk-taking in Vietnamese banks. Using data from 2007 to 2020 and employing the two-step generalized method of moments (GMM) technique, the study finds that certain aspects of corporate governance significantly influence bank stability efficiency. Specifically, the presence of female board members, independent directors, and larger board sizes are associated with improved stability efficiency, while the presence of foreign board members has a negative impact. These findings are consistent with agency theory, stewardship theory, and resource dependence theory. By employing the stochastic frontier approach, this research contributes to understanding how corporate governance characteristics can help mitigate risk-taking in emerging market contexts.

The role of audit committee characteristics in improving the risk disclosure of companies examining the moderating role of audit quality

This paper examines the association between audit committee characteristics (ACC) and risk disclosure (RD) of firms, focusing on the moderating effect of audit quality (AQ). The importance of RD to investors and stakeholders is that such a practice offers a better evaluation of the overall risk profile of companies. Based on agency theory complemented by the resource dependence theory, this paper therefore suggests that effective audit committees have an effect of reducing information asymmetry while increasing audit quality monitoring capacities and consequently enhance risk disclosure practices. In this respect, the literature sources were reviewed, and a hypothetical framework was developed to test the hypotheses. The sample selection comprises 54 companies with non-financial companies listed in the Egyptian Exchange Market, EGX100, for the period 2018 to 2021, which amounts to 216 observations. According to the results, ACC, such as size and financial expertise, are significant for RD, while ACC relating to meetings and independence are less important for RD. The study further established that AQ moderates the relationship between ACC and RD, implying that the significant influence of ACC is stronger when AQ is high. These inferences are of essence to policy makers and companies in understanding the implication of ACC on RD and the relation to high-quality audits in improving the effectiveness of audit committees. It underlines the importance of audit committees in giving assurance about transparency and accountability in financial reporting.

Military Connections, Investment Efficiency and Political Uncertainty: Evidence from Pakistan

This study examined the impact of military connections on a firm's investment efficiency in Pakistan during the period from 2011 to 2019. Fixed effect regression results revealed that military connections exert a positive and significant effect on the firm's investment efficiency, supporting the resource dependence theory's prediction. This result remains robust when using alternative measurements of investment efficiency, considering periods of political uncertainty proxied by election years, and controlling for endogeneity issues related to the military connection variable. However, a breakdown of military connections revealed that the presence of a military-connected Chairman reduces firms' investment efficiency. Our paper contributes to the growing attention on the impact of military-connected key individuals on corporate decision-making.

The Impact of ESG on Earnings Volatility of Manufacturing Companies in China

This study examines how environmental, social, and corporate governance (ESG) performance influences a firm’s earnings volatility, considering the mediating role of financial constraints and the moderating effects of supply chain concentration. Drawing on stakeholder theory and resource de-pendency theory, the research model was proposed and hypotheses were developed to address the research questions. The study employs fixed effects regression analysis, conducted using STATA 18.0, on data from 603 manufacturing companies listed in China's A-shares market from 2013 to 2022. The results reveal that ESG significantly impacts earnings volatility, with financial constraints partially mediating this relationship, and supply chain concentration serving as a moderator. These findings have important implications for managers, policymakers, and investors.

Enhancing Islamic Bank Performance: The Role Of Sharia Supervisory Board Attributes And Intellectual Capital

Islamic banks are required to establish a sharia supervisory board (SSB). In that sense, there is a need to gain insight into whether the characteristics of the sharia supervisory board affect the performance of Islamic banks. This research investigates the effect of SSB size, sharia background, financial background, gender diversity, and the moderating effect of intellectual capital on the performance of Islamic banks in Indonesia, Malaysia, and Brunei Darussalam during 2011-2021. The data used in this study is taken from the annual reports of Islamic banks, as many as 269 observation data, and analyzed through the panel data regression. The results show that the financial background and gender diversity variables among SSBs impact the performance of Islamic banks in the countries. Theoretically, this study strengthens the relevance of resource dependence theory in Islamic banking by highlighting that more extensive and diverse boards attract expertise, networks, and legitimacy that support performance. Practically, this study can serve as a reference for practitioners and policymakers to underline the strategic importance of board composition, gender diversity, and intellectual capital investment as drivers of ethical compliance and financial stability.

Institutional context matters: board diversity and ESG outcomes in the UAE

Purpose This study empirically examines the impact of board diversity on environmental, social and governance (ESG) outcomes in organizations from the United Arab Emirates (UAE). The study aims to extend prior literature by covering the impacts of the institutional context on board diversity and ESG outcomes. Design/methodology/approach Using a thematic analysis of interviews with 42 UAE board members, this research uncovers the effects of institutional context on ESG outcomes. The study focuses on the impact of culture, the influence of regulatory bodies and the relationship between critical board diversity traits and ESG. Findings Three major themes emerged from the data: the impact of institutional context and culture, the impact of regulatory bodies and critical board diversity traits’ relationship with ESG. The findings indicate that the institution’s cultural and regulatory context impacts board diversity and ESG. The findings also demonstrate that the board’s functional diversity (educational and occupational diversity) and age diversity impact ESG outcomes. Originality/value This research contributes to resource dependence theory by indicating the specific resources diverse directors bring to a corporate board. The study also highlights how institutional context dictates the types of resources directors seek for effective ESG implementation, providing a novel insight into board diversity’s role in ESG performance.