Is doing economically good enough to shape the MNE’s governmental relations? In contingency with contextual influences

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chun-Ping Yeh ◽  
Hsueh-Liang Wu ◽  
Yi-Chi Hsiao
Keyword(s):  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Contextual Influences ◽  
Snowball Sampling ◽  
Institutional Perspective ◽  
Data Set ◽  
Content Type ◽  
Political Activities ◽  
Managerial Implications ◽  
Mne Subsidiaries

Purpose In response to the tilted emphasis on the corporate political activities and to the recent call for including the institutional perspective in the research of the MNE’s governmental relations (MGRs), this study aims to, departing from resource dependence theory, introduce the legitimacy formation as a bridging mechanism to MGRs to holistically examine the behavioral types of antecedents of MGRs in contingency with three critical contextual influences. Design/methodology/approach This study purposely chose a Taiwanese globalized logistic corporation that we have been acquainted with as the entry for collecting data. The study started the survey with the seven foreign subsidiaries of this logistic corporation and invited their customers through their personal referrals to join this survey. Following the snowball sampling, remarks were added in the questionnaire to request respondents’ assistance in inviting TMT members of different MNE subsidiaries in their personal networks to join the survey. Findings The findings from analyzing a survey data set of 155 MNE subsidiaries during 2016 show that the MNE’s economically-good behaviors are not so influential as Milton Friedman stated in 1962, and can only outperform socially-good and politically-good behaviors in shaping better MGRs under some specific contextual influences. Originality/value This study contributes to the international business literature by shedding new light on the sensitivity of behavioral antecedents of MGRs in contingency with contextual influences and provides managerial implications to MNE particularly when they expect to reduce external uncertainties or capturing opportunities by MGRs.

Do board interlocks support monitoring effectiveness?

2019 ◽  
Vol 42 (11) ◽  
pp. 1278-1296 ◽  
Author(s):  
Franziska Handschumacher ◽  
Maximilian Behrmann ◽  
Willi Ceschinski ◽  
Remmer Sassen
Keyword(s):  
Panel Data ◽  
Resource Dependence ◽  
Pay For Performance ◽  
Resource Dependence Theory ◽  
Risk Governance ◽  
Data Set ◽  
Content Type ◽  
Board Interlocks ◽  
Performance Sensitivity ◽  
The Impact

Purpose This paper aims to investigate the relationship between board interlocks and monitoring effectiveness for listed German companies in a context of risk governance. While agency-theory and resource-dependence-theory suggest a positive association between board interlocks and monitoring effectiveness, reasons such as limited temporal resources of busy board members may suggest a negative association. Design/methodology/approach By using panel data regression, the authors examined the association between board interlocks and monitoring effectiveness, which was approximated by excessive management compensation, pay-for-performance-sensitivity and CEO turnover-performance-sensitivity. The data set comprises 3,998 directorships for 132 listed German companies covering the period 2015-2017. Findings The authors find that board interlocks are associated with not only a more excessive management pay and less performance-sensitive turnover but also a higher pay-for-performance-sensitivity. Originality/value The study examines the impact of multiple directorships based on a German panel data set that includes both multiple appointments of members to national supervisory boards and all other appointments to national and international executive and supervisory bodies. The authors compile three measures to operationalize monitoring effectiveness.

The link between independent directors and firm’s performance: the moderating role of corporate social responsibility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hien Thi Tran
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Fixed Effects ◽  
Resource Dependence ◽  
Estimation Method ◽  
Resource Dependence Theory ◽  
Independent Directors ◽  
Data Set ◽  
Content Type ◽  
Corporate Social

Purpose This paper aims to examine how independent directors (IDs) affect a firm’s performance measured on profitability, with corporate social responsibility (CSR) interaction. Design/methodology/approach The study uses an international data set of 1,817 firm-year observations from 545 large companies in 20 countries across Asia, America and Europe, and the fixed-effects estimation method. Findings The direct effect of IDs alone on profitability is statistically insignificant; however, the synergic effect of IDs and CSR on profitability becomes significantly positive when firms disclose CSR information. Practical implications The profitability is partially sourced from the synergy of IDs and stakeholders through CSR. IDs may use CSR disclosure to win stakeholders’ goodwill. This goodwill will likely be transformed into profitability. The empirical results indicate that there should be more need for IDs’ engagement in CSR projects as the resources of IDs combined with external stakeholders can be of important value to firms. Originality/value This paper reveals the underlying mechanism that firm-idiosyncratic value is formed using a combination of ID resources and stakeholders through CSR. This research extends the literature of IDs’ efficiency and effectiveness and confirms the agency theory and resource dependence theory.

scholarly journals Mitigating the performance implications of buyer’s dependence on supplier: the role of absorptive capacity and long-term relationship

2020 ◽  
Vol 25 (6) ◽  
pp. 693-707
Author(s):  
Daniel Prajogo ◽  
Mesbahuddin Chowdhury ◽  
Anand Nair ◽  
T.C.E. Cheng
Keyword(s):  
Absorptive Capacity ◽  
Business Performance ◽  
Resource Dependence ◽  
Positive Outcome ◽  
Resource Dependence Theory ◽  
Joint Effect ◽  
Data Set ◽  
Content Type ◽  
And Performance

Purpose Buyer’s dependence on its key supplier for critical resources and capabilities is generally considered as creating a disadvantageous position for the buyer and undermining its business performance. This study aims to invoke arguments from resource dependence theory (RDT) to examine if this adverse effect of buyer’s dependence is moderated by the buyer’s absorptive capacity and a long-term relationship with the key supplier. Design/methodology/approach Using a data set drawn from 204 manufacturing firms in Australia, this study tested the proposed model using hierarchical moderated regression analysis. Findings The finding shows that buyer’s dependence on its key supplier by itself has no significant effect on the buyer’s business performance. However, the link between buyer’s dependence on its key supplier and performance is positively moderated by the level of the buyer’s absorptive capacity, as well as by the joint effect of buyer’s absorptive capacity and a long-term relationship with the key supplier. Practical implications As buyer’s dependence is often difficult to avoid, the finding of this study is instructive in showing managers how to strategically mitigate the effect of their firm’s dependence on a key supplier; indeed, turn it into a positive outcome. Originality/value This is the first study, which integrates the internal and external resources in mitigating the effect of buyer’s dependence on the supplier.

Diversification and performance in the hotel industry: do board size and family representation matter?

2019 ◽  
Vol 31 (8) ◽  
pp. 3306-3324
Author(s):  
Chen Zheng (Jerry) ◽  
Henry Tsai
Keyword(s):  
Hong Kong ◽  
Firm Performance ◽  
Fixed Effects ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Board Size ◽  
Content Type ◽  
Bivariate Correlation ◽  
Managerial Implications ◽  
Family Representation

Purpose This study aims to empirically examine the relationship between industrial diversification and firm performance and the moderating effects exerted on that relationship by board size and family representation on the board. Design/methodology/approach Secondary financial data were collected for hotel firms listed on the Hong Kong Stock Exchange during the period 2005-2016. Subsequently, a bivariate correlation and a fixed-effects panel regression analysis were performed on the data. Findings The empirical results showed that diversification positively influenced firm performance until firms reached an optimal level of diversification (0.34); beyond that level, the effect was negative. In addition, firms with a larger board tended to show better performance when the level of diversification increased from medium to high, and firms with lower family representation on the board tended to exhibit better performance when the level of diversification increased from low to medium. Practical implications Theoretical and managerial implications are suggested in terms of balancing the size of a firm’s board and with regard to family representation on a board from the perspectives of resource dependence theory (RDT) and socioemotional wealth (SEW), the diversification of hotel firms and future research. Originality/value A limited number of studies have considered diversification as a corporate-level strategy in the hospitality field and in the unique context in which a service-oriented economy is dominant, such as in Hong Kong. The role of board composition on the diversification–performance relation has rarely been investigated theoretically and empirically. Apart from providing managerial implications for corporate governance, this study also offers theoretical generalizability, from the perspectives of RDT and SEW, to examine the moderating roles of board size and family representation on the diversification–firm performance relation.

The effect of supplier globalization on firm innovation: a resource dependence theory perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yibo Wang ◽  
Bai Liu
Keyword(s):  
Resource Dependence ◽  
Positive Impact ◽  
Market Competition ◽  
Effective Means ◽  
Resource Dependence Theory ◽  
Institutional Distance ◽  
Foreign Firms ◽  
Firm Innovation ◽  
Content Type ◽  
Dependence Theory

PurposeEither buying or making is predicted by the existing literature for firms to reduce dependence. However, firms in the rapid globalization are found to adopt a pattern of buying and making. Specially, they critically rely on foreign firms for needed materials and goods, and invest in innovation against the uncertainty of potential supply disruptions simultaneously. Therefore, this paper seeks to investigate how the depth and width of supplier globalization shape firm innovation together. Moreover, the moderating effects of institutional distance and market competition are also examined in the paper.Design/methodology/approachGrounded on the resource dependence theory, this paper develops a theoretical framework and tests the proposed hypotheses by Poisson model using secondary data from 502 Chinese listed firms with foreign suppliers.FindingsThe depth of supplier globalization has a positive impact on firm innovation, while the width of supplier globalization weakens firm innovation. The depth and width of supplier globalization further interact negatively to influence firm innovation. Moreover, this relationship is enhanced when firms establish relationships with foreign firms with greater institutional distance and is weakened when firms face fiercer product competition.Originality/valueThe authors contribute to the literature by evidencing that the existence of foreign suppliers results in firms' enhancement of innovation to secure their operations and showing that diversifying the country origins of foreign suppliers is an effective means to reduce firms' uncertainty about supply disruption. We also advance the understanding regarding the contextual factors in which firms are more likely or less likely to manage the uncertainty about supplier globalization.

Hiring decisions on certified manpower

2018 ◽  
Vol 15 (4) ◽  
pp. 514-535
Author(s):  
Huei-Wen Pao ◽  
Cheng-Yu Lee ◽  
Pi-Hui Chung ◽  
Hsueh-Liang Wu
Keyword(s):  
Service Sector ◽  
Resource Dependence ◽  
Management Practice ◽  
Resource Dependence Theory ◽  
Resource Scarcity ◽  
Institutional Innovation ◽  
Social Contagion ◽  
Service Firms ◽  
Hiring Decisions ◽  
Content Type

Purpose The industry-wide adoption of a novel practice is often considered to be an institutional change. Although research on institutionalization has been accumulating, how and why embedded actors in the field become motivated to embrace change that remains sidelined. Viewing the introduction of a new human resource management practice, the recruitment of non-compulsory certified manpower, which is still in its infancy in the service sector of Taiwan, as a new institution, the purpose of this paper is to identify the distinct motives behind firms’ hiring decisions, and examine the extent to which such hiring decisions are contingent on institutional conditions and firm attributes. Design/methodology/approach The data used to test the hypotheses were drawn from a survey on service firms in Taiwan in the second half of 2011. Hypotheses were examined through moderated hierarchical regression analyses in a sample of 254 Taiwanese service firms across major sectors. Findings Integrating the resource dependency and social contagion views, the study contends that resource scarcity drives, or legitimacy enables, service firms to deviate from traditional hiring patterns and instead adopt new preferences toward certified manpower. The study not only shows that social factors should be incorporated into the diffusion of a new HR recruitment practice in the service sector, which is traditionally based upon economic considerations, but also sheds light on the context-dependent nature of the process of institutional innovation. Originality/value This study is an attempt not only to test a dual-theoretical model on the extent to which a service firm’s new hiring pattern is influenced by two distinct types of motivation, but also to evidence how an institutional innovation, in terms of the regime of service manpower certification, takes root and spreads in the field. The managerially discretional account of the resource dependence theory needs to be reconciled with social contagion theory, which highlights the influence of collective actions and so provides a better understanding of the diffusion of new HR recruitment practices in the service industry.

scholarly journals Supply chain strategies in an era of natural resource scarcity

2018 ◽  
Vol 38 (3) ◽  
pp. 784-809 ◽  
Author(s):  
Dimitra Kalaitzi ◽  
Aristides Matopoulos ◽  
Michael Bourlakis ◽  
Wendy Tate
Keyword(s):  
Supply Chain ◽  
Natural Resource ◽  
Resource Dependence ◽  
Empirical Work ◽  
Resource Dependence Theory ◽  
Resource Scarcity ◽  
The Body ◽  
Manufacturing Companies ◽  
Content Type ◽  
Natural Resource Scarcity

Purpose The purpose of this paper is to explore the implications of natural resource scarcity (NRS) for companies’ supply chain strategies. Design/methodology/approach Drawing on the resource dependence theory (RDT), a conceptual model is developed and validated through the means of exploratory research. The empirical work includes the assessment of qualitative data collected via 22 interviews representing six large multinational companies from the manufacturing sector. Findings When the resources are scarce and vitally important, companies use buffering strategies. Buffering and bridging strategies are preferred when there are a few alternative suppliers for the specific resource and when there is limited access to scarce natural resources. Research limitations/implications The research focuses on large multinational manufacturing companies so results may not be generalised to other sectors and to small- and medium-sized firms. Future research needs to examine the implications of NRS for organisational performance. Practical implications This research provides direction to manufacturing companies for adopting the best supply chain strategy to cope with NRS. Originality/value This paper adds to the body of knowledge by providing new data and empirical insights into the issue of NRS in supply chains. The RDT has not been previously employed in this context. Past studies are mainly conceptual and, thus, the value of this paper comes from using a qualitative approach on gaining in-depth insights into supply chain-related NRS strategies and its antecedents.

scholarly journals Can Lean and Agile organisations within the UK automotive supply chain be distinguished based upon contextual factors?

2018 ◽  
Vol 23 (3) ◽  
pp. 239-254 ◽  
Author(s):  
Amir Qamar ◽  
Mark Hall
Keyword(s):  
Supply Chain ◽  
Resource Dependence ◽  
Contextual Factors ◽  
Resource Dependence Theory ◽  
Theory And Practice ◽  
Survey Analysis ◽  
Content Type ◽  
Automotive Supply Chain ◽  
Automotive Supply ◽  
Agile Production

PurposeThe purpose of this paper is to robustly establish whether firms are implementing Lean or Agile production in the automotive supply chain (SC) and, by drawing on contingency theory (CT) as our theoretical lens, independently determine whether Lean and Agile firms can be distinguished based upon contextual factors.Design/methodology/approachPrimary quantitative data from 140 firms in the West Midlands (UK) automotive industry were obtained via a constructed survey. Analysis incorporated the use of logistic regressions to calculate the probability of Lean and Agile organisations belonging to different groups amongst the contextual factors investigated.FindingsLean and Agile firms co-exist in the automotive SC and Lean firms were found to be at higher tiers of the SC, while Agile firms were found to be at lower tiers.Originality/valueThe originality of this study lies within the novel methodological attempt used to distinguish Lean and Agile production, based upon the contextual factors investigated. Not only is the importance of CT theoretically approved, but “received wisdom” within SC management is also contested. Extant literature propagates that the automotive SC is comprised of organisations that predominantly adopt Lean production methods, and that in SCs comprised of both Lean and Agile organisations, the firms closer to the customer will adopt more flexible (Agile) practices, while those that operate upstream will adopt more efficient (Lean) practices. The findings from this study have implications for theory and practice, as Lean and Agile firms can be found in the automotive SC without any relationship to the value-adding process. To speculate as to why the findings contest existing views, resource dependence theory and, more specifically, a power perspective, was invoked. The authors provide readers with a new way of thinking concerning complicated SCs and urge that the discipline of SC management adopts a “fourth” SC model, depicting a new Lean and Agile SC configuration.

The emerging role of coopetition within inter-firm relationships

2019 ◽  
Vol 30 (2) ◽  
pp. 414-437 ◽  
Author(s):  
Zach Zacharia ◽  
Michael Plasch ◽  
Usha Mohan ◽  
Markus Gerschberger
Keyword(s):  
Resource Dependence ◽  
Empirical Support ◽  
Resource Dependence Theory ◽  
Structured Interview ◽  
Future Research ◽  
Multiple Perspectives ◽  
Content Type ◽  
Capital Costs ◽  
Interview Process ◽  
A Value

Purpose Increasing environmental uncertainty, more demanding customers, rapid technological growth and rising capital costs have all forced firms to evolve from collaborating with buyers and suppliers to collaborating with their competitors and that is called coopetition. The purpose of this paper is to better understand the antecedents and outcomes associated with coopetition. Design/methodology/approach Building from the existing literature and three theoretical foundations, resource-based theory, resource dependence theory and game theory, the authors develop a model showing the antecedents and outcomes of coopetition and associated propositions of coopetition. Using a semi-structured interview process of 21 industry executives, the authors offer empirical support for the proposed coopetition model and propositions. Findings Firms are increasingly dependent on the knowledge and expertise in external organizations to innovate, solve problems and improve supply chain performance. This research suggests that there is a value for firms to consider coopetition as a part of their inter-firm strategies. Research limitations/implications The semi-structured interview process used in this research provided a wealth of information and executive experiences in coopetition. The interviews, however, only provide a single perspective of collaborative engagements with competitors. Multiple perspectives of each project would add value to this research. Originality/value Collaboration among buyers and suppliers have been well researched; however, there has not been as much research on coopetition. This research provides a new area for future research for academics and offers suggestions for managers to improve the effectiveness and efficiency of their coopetition projects.

scholarly journals Maximising “Community Benefits” in public procurement: tensions and trade-offs

2020 ◽  
Vol 40 (12) ◽  
pp. 1909-1939
Author(s):  
Karen Lorraine Wontner ◽  
Helen Walker ◽  
Irina Harris ◽  
Jane Lynch
Keyword(s):  
Public Sector ◽  
Resource Dependence ◽  
Local Community ◽  
Public Procurement ◽  
Resource Dependence Theory ◽  
Resource Dependency ◽  
Unintended Consequences ◽  
Content Type ◽  
Community Benefits ◽  
Trade Offs

PurposeThis study aims to illuminate the challenges involved in implementing community benefits (CBs), a sustainable public procurement policy that ensures that there are positive social and economic outcomes for the local community when public money is spent on goods, works and services.Design/methodology/approachInterviews and focus groups were conducted with public sector buyers and suppliers in Wales with experience in implementing CBs. Resource dependence theory was used to examine the extent to which dependence on resources effects CBs implementation.FindingsWhilst the study confirms that implementation of CBs improves economic and social outcomes, there can also be challenges for public sector organisations and their constituent supply chains. These include tensions between CBs and other policies, differing views between buyers and suppliers, and the unintended consequences of promoting one form of CBs over another.Research limitations/implicationsThe research found that Welsh Government influences the buyer-supplier dyad through regulatory and financial power. We elaborate on resource dependency theory by adding four constructs (powerful stakeholders, intra and inter organisational issues, challenges and enablers) to better understand the flows of power and resources in this research context.Practical implicationsBuyer and supplier practitioners and policymakers may find the factors leading to successful CBs implementation useful, such as ensuring closer communication and liaison at early contract stages.Social implicationsCommunity benefits are aimed at improving socioeconomic issues through public procurement.Originality/valueThis study addresses the need for research into how public sector organisations and suppliers seek to implement socio-economic sustainability measures, and the lack of research on CBs implementation to date. It is also novel in adopting a dyadic approach and a resource dependency perspective.

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