Search results for "Resource Dependence Theory"
showing 10 items of 15 documents
Development of organizational trust among employees from a contextual perspective
2006
It is becoming increasingly accepted that trust in the workplace is an important factor which potentially leads to enhanced organizational performance and can be a source of competitive advantage in the long run (e.g. McAllister 1995, Whitener et al. 1998, Leana & van Buren III 1999, Wicks et al. 1999, Gould-Williams 2003). Although it may be unreasonable to expect that any firm can have boundless trust among employees, the starting point of this paper lies in the argument that organizational trust is more desirable from the viewpoint of the firm’s economic prosperity than its lack. Organizational trust is important for successful socialization, cooperation and effective teamworking (cf. Pu…
Determinants of Board Structure in Microfinance Institutions: Evidence from East Africa
2013
This study investigates the association between the unique characteristics of microfinance institutions and board structure. The agency and resource dependence theories provided theoretical guidance for this study. Using a panel dataset of 63 microfinance institutions in East Africa, we found that the presence of regulations and international influence is associated with larger boards, while the presence of founders is associated with small boards and less board independence. There is a higher level of board gender diversity in microfinance institutions managed by founders. There is greater diversity of nationalities in microfinance institutions that are internationally influenced. The imp…
Risk assessment and profit sharing in business networks
2011
Abstract Nowadays network is the preferred governance form to conduct economic transactions. Network solution allows to reach flexibility maintaining cost and quality level. Since network concept refers to a great variety of organizational hybrids it is possible to choose the one that fits better market requirements. The new trends in inter-organization relationships push towards network solutions: companies are interested in relationships with partners and customers to overcome resource dependence, to enter too risky market or simply differentiate their business portfolio. The proposed research focuses on the network concept aiming at highlighting threats and opportunities to investigate t…
Conflicting interests but filtered key targets: Stakeholder and resource-dependency analyses at a University of Applied Sciences
2013
Stakeholder theory (SHT) emphasizes that different stakeholders and their interests need to be identified and addressed to maximize firm performance. This emphasis can make the design of performance measurement systems (PMS) challenging because the interests of stakeholders are often in conflict. Based on previous research and using stakeholder and resource dependency theories, we develop a theoretical model suggesting that resource dependency acts as a “filter” in selecting which of the PMS design measures are emphasized for decision making. We find various conflicting interests between stakeholders in our case organization (a unit of University of Applied Sciences in Finland) that affecte…
Extending the international new venture phenomenon to digital platform providers : A longitudinal case study
2018
People increasingly interact with services enabled by digital platforms. This has been a consequence of the digitalization of artifacts, which has transmuted traditional businesses into digital forms. With the increasing digitalization and modularization of services, digital platforms have given many digital service providers possibilities to scale globally, and to rapidly transcend national borders by serving multi-sided markets. However, we still know very little about how digital platform providers actually internationalize their services, or how they make their platforms available for global markets. In this paper, we contribute to the increasing literature on digital-based INVs, examin…
Overcoming the liability of foreignness – A new perspective on Chinese MNCs
2021
Abstract We maintain that previous research on multinational corporations' liability of foreignness has underemphasized the importance of the firm's dependence on their parents, subsidiary and local resources. To address this issue, we conducted 43 semi-structured interviews with expatriate and local managers of Chinese high-tech MNCs over two years (2017–2019) and across China, Poland and Hong Kong to understand how they cope with the liability of foreignness in Poland. Using the resource dependence perspective, the linkage, leverage, learning (LLL) paradigm and the institutional view, we identified six dimensions affecting the liability of foreignness: resource commitment, information flo…
Intermediate units in multinational corporations: A resource dependency view on coordinative versus entrepreneurial roles
2021
Abstract 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 dominan…
Busyness of audit committee directors and quality of financial information in India
2016
The audit committees, as a part of the internal corporate governance mechanisms, play an important role to enhance the financial reporting quality. The busyness of audit committee members of a firm in boards and committees of other firms can affect its independent functioning, ceteris paribus. The current study examines, first, the association between multiple directorships of audit committee members and quality of financial reporting in India, second, whether endogenously determined busyness limits of busyness of the audit committee members provide better insights than those exogenously mandated by regulators. The study finds that endogenously determined busyness limits of sub-samples and …
The Institutionalization of Political Risk Assessment by Chinese Multinational Firms
2021
Some researchers have claimed that Chinese firms are impervious to political risk, calling into question the institutionalization of political risk by Chinese firms. Building on resource dependence theory and the literature on non-market strategies, this study finds significant impact by ownership structure, firm scale, and the degree of internationalization on the institutionalization of political risk assessments (IPRA) by Chinese firms. As such, state-owned firms and larger firms cultivate a higher level of IPRA. We find a positive impact of a firm’s scale and scope of internationalization, but insignificant impact of depth of internationalization.
The effect of buyer specific-monitoring procedures on buyer control in dynamic supply chain links
2015
Based on transaction cost analysis (TCA), resource dependency theory (RDT), and supply chain management literature, this study explores the effect of buyer-specific monitoring procedures on buyer control in industrial buyer-seller transactions, particularly in relation to how environmental uncertainty affects the buying firm's ability to exercise control over the supplier firm. The research design is based on primary data from a survey of 168 industrial buyer-seller relationships which map a broad set of dimensions of the economic transactions and structures in these business-to-business relationships. The empirical findings provide support for the hypotheses, and demonstrate that the effec…