The role of start-up incubators in cooperation networks from the perspective of resource dependence and interlocking directorates

2019 ◽  
Vol 57 (10) ◽  
pp. 2816-2836 ◽  
Author(s):  
Anderson Galvão ◽  
Carla Marques ◽  
Mário Franco ◽  
Carla Mascarenhas
Keyword(s):  
Resource Dependence ◽  
Transaction Cost Economics ◽  
Resource Dependence Theory ◽  
Structured Interviews ◽  
Interlocking Directorates ◽  
Content Type ◽  
Scarce Resources ◽  
Start Up ◽  
Dependence Theory ◽  
Start Ups

Purpose Based on resource dependence theory and the concept of interlocking directorates, the purpose of this paper is to understand the importance of networks for start-ups and the role incubators play in these companies’ networking processes. Design/methodology/approach The research was conducted through semi-structured interviews with the entrepreneurs responsible for three start-ups and the heads of their incubators. The interview data were subjected to content analysis using NVivo software. Findings The results indicate that start-ups often resort to networks to overcome their weak reputations and scarce resources. Incubators play a quite important role in this process since they promote events that encourage the creation of partnerships and networks either between start-ups within the same incubator or with external institutions. In addition, the results reveal that most cooperation networks are informal and that they fulfil needs that start-ups are not yet able to meet themselves, for example, when they compete for public tenders. Practical implications The present study explored this topic from two perspectives (i.e. start-ups and incubators). This approach facilitated the identification of the main features upon which start-ups depend, the entities to which these companies turn for help, the kind of communication in which they usually engage, the primary advantages of establishing cooperation networks and the main types of support given by incubators. Originality/value Most studies of cooperation networks are based on transaction cost economics, a resource-based perspective and/or institutional theory. In contrast, this study innovated by applying resource dependence theory and the concept of interlocking directorates, which provided an alternative explanation regarding cooperation networks’ importance to start-ups and incubators’ roles in these companies’ networking processes.

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.

scholarly journals Falsification of Theorizing in Operations Management Research

2018 ◽  
Vol 6 (1) ◽  
pp. 102
Author(s):  
Abdul Salam Khan ◽  
Iqbal Muhammad Khan ◽  
Muhammad Sadiq ◽  
Imran Ahmed Khan
Keyword(s):  
Operations Management ◽  
Resource Dependence ◽  
Transaction Cost Economics ◽  
Resource Dependence Theory ◽  
The Body ◽  
Theory And Practice ◽  
Management Research ◽  
Resource Based View ◽  
Dependence Theory ◽  
Practice Approach

The practices of operations management research have been inclined towards practicality and pragmatism. Induction is core background of research in operations management. However, there are certain biases and critiques on the generalizability of data using the approach of Induction, of which falsification is more prominent. This study takes upon three major theories used in Operations Management (OM) research such as Resource Based View (RBV), Transaction Cost Economics (TCE) and Resource Dependence Theory (RDT) and discusses the falsification critiques such as tautology on the theories and theorization of Operations Management (OM) and how the body of research in operations management responds to the criticism. Our study suggests that there needs to be a domain limitation of the theorizing process wherein the theory is posit to hold and thus exposing the theory at hand to the critique of falsification. The theory needs not to capture every facet of the phenomena under examination. This study also highlight the importance of developing field specific theories and the improvement brought into the process of theorization and towards the end we describe courses of action for improving the balance between theory and practice approach in the field.

Exploring the role of business relationships in start-ups’ life cycles

IMP Journal ◽  
2018 ◽  
Vol 12 (3) ◽  
pp. 519-543
Author(s):  
Chiara Cantù ◽  
Sepe Giorgia ◽  
Alessandra Tzannis
Keyword(s):  
Life Cycle ◽  
Secondary Data ◽  
Life Cycles ◽  
Business Relationships ◽  
Structured Interviews ◽  
Content Type ◽  
Strategic Resources ◽  
Start Up ◽  
Start Ups

Purpose Differently from previous works that focused on the entrepreneur and on his ability to manage social relationships, the purpose of this paper is to investigate the role of business relationships in the different stages of the life cycle of a start-up. Design/methodology/approach Since the paper aims to explore startups’ evolutionary phenomenon, it adopts a qualitative abductive methodology, presenting an in-depth study of two innovative Italian start-ups. The research is based on two steps. In the first one, the authors collected secondary data from start-ups’ reports and documents, financial indicators (when available) and processed them to understand their background. In the second one, the authors conducted ten semi-structured interviews, including face-to-face interviews, phone interviews and video conferences. Findings The paper presents a relationship-based life cycle model composed of four different stages, depending on the number and role of relationships developed. Indeed, since the beginning, start-ups adopt a relational approach and their evolution involves the shift from the focus on the entrepreneur to the centrality of a network approach based on interconnected relationships. The entering into a new stage of life cycle depends on relationships, mainly based on connected actors and resources shared and combined. Even if a key role is assumed by technology, the main resource is identified in the knowledge concerning the customer/user’s needs that require marketing competencies, human resources, relational capabilities. Thus, the shift from one stage to the next in the start-up’s life cycle is possible thanks to a parallel shift from a focus on the activities to a focus on those strategic and heterogeneous actors that ensure activities. Originality/value In a traditional perspective, the start-up’s life cycle depends on activities, financial resources and revenues, as stated by previous life cycle models. In a different perspective, as depicted in our analysis, the evolution of a start-up depends on the portfolio of their business relationships. The role of business relationships is hence to facilitate the interconnections within specialized key actors, which allow start-ups to access strategic resources. These resources are essential in order to develop the activities that characterize the specific stage of the life cycle.

scholarly journals Model for assessing the quality of marketing-management education

2018 ◽  
Vol 25 (49) ◽  
pp. 5-25
Author(s):  
Jaime Rivera ◽  
Víctor Alarcón
Keyword(s):  
Resource Dependence ◽  
Management Education ◽  
Resource Dependence Theory ◽  
Educational Quality ◽  
Marketing Management ◽  
Diagnostic Tools ◽  
Least Squares Regression ◽  
Content Type ◽  
Dependence Theory

Purpose This study aims to propose and test a model of educational quality in marketing-management by incorporating resource-capability variables that are linked to learning outcomes for students and the competitive positioning of universities. Design/methodology/approach Drawing on the resource-dependence theory, this study develops a comprehensive model for measuring educational quality. A sample comprising Spanish university teachers has been used to test the hypothesised relationships by using a two-stage least squares regression analysis while controlling for the possible effect of the public/private nature of the university. Findings The results validate the model and show that educational capabilities are reliable variables for predicting the educational quality of marketing-management programmes at Spanish universities. Research limitations/implications Similar to all educational research studies, certain problems have been acknowledged with respect to the data and the theoretical constructs that are used in the study. Future studies can replicate this study’s model by using more direct objective measures of the theoretical constructs and extend the study to other countries with different educational contexts. Practical implications The results provide guidance to marketing teachers at a university in designing high-quality marketing-management educational programmes and in developing self-diagnostic tools that can determine a university’s likelihood of competitive success. Originality/value This study is one of the few studies to apply the resource-dependence theory to the analysis of the variables associated with the quality of marketing-management education. In doing so, the study presents original multiitem scales to improve the measurement of model constructs.

Enterprise survival in the high-tech community: persuasion and power in board decisions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ronit Yitshaki ◽  
Eli Gimmon ◽  
Susanna Khavul
Keyword(s):  
High Tech ◽  
Structured Interviews ◽  
Board Size ◽  
Term Survival ◽  
Long Term Survival ◽  
Content Type ◽  
Board Processes ◽  
Start Up ◽  
Start Ups

Purpose This study aims to examine the extent to which board size, the use of power by venture capital investors and entrepreneurs’ interpersonal tactics such as persuasion to sway board decisions, influence the long-term survival of start-ups. Design/methodology/approach This study used a mixed-methods approach. The quantitative part is based on data collected from 179 chief executive officers (CEOs) of high-tech start-ups community financed by venture capitalists (VCs) in Israel of which 59 did not survive. To achieve a better understanding of these findings, semi-structured interviews with 12 entrepreneurs were conducted. Findings Smaller boards were positively associated with venture survival. The use of power by VC investors positively influenced start-up survival. CEO persuasion had a negative effect on venture survival; however, its interaction with board size suggests that it had a lesser effect on very small boards. Practical implications Although investors’ control over decision-making contributes to long-term survival, entrepreneurs should be aware of the possible detrimental effects of exercising a high level of persuasion in board processes. The findings also suggest that a small board size is preferable for start-up survival. Originality/value Exploring the effect of board processes on venture survival is considered complex. A unique sample of high-technology start-ups consisting of both surviving and failed start-ups was analyzed to explore the effects of persuasion and power in board processes.

Fitting in as an outsider: a resource dependence theory approach to outside boards

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Desmond Ng ◽  
Nima Khodakarami
Keyword(s):  
Resource Dependence ◽  
Public Support ◽  
Resource Dependence Theory ◽  
The United States ◽  
Theory Approach ◽  
Panel Estimation ◽  
Charitable Organization ◽  
Content Type ◽  
Medical Needs ◽  
Dependence Theory

PurposeThis study draws on resource dependence theory (RDT) to explain a board's governance function in the United States (US) nonprofit healthcare industry. Specifically, while various nonprofit research studies have appealed to agency theory (AT) to explain the monitoring role of an outside board, RDT offers an alternative explanation that emphasizes an outside board's resource gathering role.Design/methodology/approachIn drawing on the nonprofit GuideStar database, a fixed effect (FE) panel estimation was conducted on a sample of 230 US Non Profit Healthcare Organizations (NPHCOs). This panel estimation examines the relationship between the composition of an outside board and an NPHCO’s revenue and public support performance.FindingsA key finding of this study is that the composition of an outside board involving its' number, compensation and gender impacts an NPHCO’s revenue and public support.Research limitations/implicationsThis study shows that the composition of an outside board impacts an NPHCO’s ability to gain access to external resources. As NPHCOs face increasing pressure to seek external forms of revenue support, this study suggests that boards should favor a larger number, compensation and female representation of outside members.Practical implicationsThe composition of an outsider board can offer external sources of revenue support that lower the poor's requirements for financial assistance and thus affirm an NPHCO’s identity as a charitable organization.Originality/valueAs an NPHCO’s identity as a charitable organization is dependent on serving the medical needs of the poor, an outside board not only introduces a resource gathering function that is absent in the monitoring explanations of AT, but that this resource gathering function is important to affirming this identity.

Empowering human resource functions with data-driven decision-making in start-ups: a narrative inquiry approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Deepkumar Varma ◽  
Pankaj Dutta
Keyword(s):  
Decision Making ◽  
Narrative Inquiry ◽  
Technology Implementation ◽  
Data Driven ◽  
Structured Interviews ◽  
New Paradigm ◽  
Data Driven Decision Making ◽  
Content Type ◽  
Start Up ◽  
Start Ups

Purpose Across industries, firms want to adopt data-driven decision-making (DDDM) in various organizational functions. Although DDDM is not a new paradigm, little is known about how to effectively implement DDDM and which problem areas to focus on in these functions. This study aims to enable start-ups to use DDDM in human resources (HR) by studying five HR domains using a narrative inquiry technique and aims to guide managers and HR practitioners in start-ups to enable data-driven decisions in HR. Design/methodology/approach This study adopts the narrative inquiry technique by conducting semi-structured interviews with HR practitioners and senior members handling HR functions in start-ups. Interview memos are thematically analyzed to identify repeated ideas, concepts or elements that become apparent. Findings The study findings indicate that start-ups need to have canned operational reports with right attributes in each of these HR domains, which members should use when performing HR tasks. Few metrics, like cost-to-hire in recruitment, distinctly surfaced relatively higher in importance that each start-up, should compute and use in decision-making. Practical implications Managers, HR practitioners and information technology implementation teams will be able to consume the findings to effectively design or evaluate HR processes or systems that empower decision-making in a start-up. Originality/value Start-ups have a fast-paced culture where creativity, relationships and nimbleness are valued. Prevalent decision models of larger organizations are not suitable in start-ups’ environments. This study, being cognizant of these nuances, takes a fresh approach to guide start-ups adopt DDDM in HR and identify key problem areas where decision-making should be enabled through data.

The moderating effect of international trade on outside director system in Korean firms

2019 ◽  
Vol 23 (1) ◽  
pp. 19-34
Author(s):  
Yoonsung Nam ◽  
Tae-Joong Kim ◽  
Wonyong Choi
Keyword(s):  
International Trade ◽  
Resource Dependence ◽  
Control Function ◽  
Resource Dependence Theory ◽  
Moderating Effect ◽  
Main Role ◽  
Global Business ◽  
Content Type ◽  
Dependence Theory ◽  
Outside Director

Purpose The purpose of this paper is to investigate the moderating effect of international trade on outside director system in Korean firms. The authors expected that Korean firms highly depending on international trade would mitigate the resource provision function of outside director system in order to reduce information asymmetry among global business partners. In addition, the authors tried to find out the functions of outside director system: the control function based on agency theory and resource provision function based on resource dependence theory. Design/methodology/approach The authors tested the hypotheses by Poisson regression with 2011 and 2002 Korean-listed manufacturing firms. The dependent variable is the number of excessively appointed outside directors and independent variable is CEO type: family CEO or professional CEO. The moderating variable is the dependency on international trade measured by export proportion out of total sales. Findings The authors found that not control but resource provision function was a main role of outside director system in Korean firms. The authors also found negative moderating effect of dependency on international trade, which means that firms highly depending on global market tended to consider outside director system as control function, namely “global standard.” Originality/value This paper is the leading study that tries to analyze empirically the relationship between international trade and the function of governance mechanism; outside director system in Korean firms. It also confirms that Korean firms adopted outside director system on the basis of the resource dependence theory.

Think human, act digital: activating data-driven orientation in innovative start-ups

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anna Visvizi ◽  
Orlando Troisi ◽  
Mara Grimaldi ◽  
Francesca Loia
Keyword(s):  
Innovation Management ◽  
Strategic Orientation ◽  
Constructivist Grounded Theory ◽  
Data Driven ◽  
Structured Interviews ◽  
Content Type ◽  
Proactive Management ◽  
Start Up ◽  
Innovation Patterns ◽  
Start Ups

PurposeThe study queries the drivers of innovation management in contemporary data-driven organizations/companies. It is argued that data-driven organizations that integrate a strategic orientation grounded in data, human abilities and proactive management are more effective in triggering innovation.Design/methodology/approachResearch reported in this paper employs constructivist grounded theory, Gioia methodology, and the abductive approach. The data collected through semi-structured interviews administered to 20 Italian start-up founders are then examined.FindingsThe paper identifies the key enablers of innovation development in data-driven companies and reveals that data-driven companies may generate different innovation patterns depending on the kind of capabilities activated.Originality/valueThe study provides evidence of how the combination of data-driven culture, skills' enhancement and the promotion of human resources may boost the emergence of innovation.

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