Board capital and exploration: from a resource provisional perspective

2015 ◽  
Vol 53 (9) ◽  
pp. 2156-2174 ◽  
Author(s):  
Nami Kim ◽  
Eonsoo Kim
Keyword(s):  
Resource Dependence ◽  
Negative Binomial ◽  
Core Competencies ◽  
Resource Dependence Theory ◽  
Outside Directors ◽  
Board Diversity ◽  
Role Taking ◽  
Content Type ◽  
Board Capital ◽  
Role Based

Purpose – Drawing upon the resource dependence theory, the purpose of this paper is to examine how the board capital diversity influences the explorative innovation of firms, attempting to resolve the inconsistent empirical findings of the effect of outside directors on firm’s R & D strategy. Design/methodology/approach – Using a sample of Korean manufacturing firms which consider R & D capability to be one of their core competencies, the study uses negative binomial model to test the influence of board capital diversity on explorative innovation. Findings – Results support the value of moderate level of board diversity hypothesis by demonstrating that board capital diversity shows an inverted U-shaped relationship with explorative innovation. The results also suggest that CEO ownership positively moderates the relationship between board capital diversity and firms’ innovative performance. Originality/value – Mainstream research has focussed on the directors’ monitoring role based on agency theory, overlooking the more positive resource provision role. Taking on the concepts of board capital and exploration, the study introduces the notion that outside directors should be selected with a view as vehicles for bringing in valuable expertise and social linkages for the firm’s explorative innovation.

scholarly journals Board demographic diversity and human rights reporting in Western Europe

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ana Paula Castelo Branco ◽  
Maria Teresa Bianchi ◽  
Manuel Castelo Branco
Keyword(s):  
Human Rights ◽  
Boards Of Directors ◽  
Western Europe ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Demographic Diversity ◽  
Board Diversity ◽  
Content Type ◽  
Ordinal Logistic Regression Analysis ◽  
The Board Of Directors

Purpose This paper aims to examine the relationship between board demographic diversity and human rights reporting for a sample of large Western European companies. Design/methodology/approach Grounded on resource dependence theory, the authors hypothesize that greater gender, age and nationality diversities will translate into enhanced levels of human rights reporting. The authors use ordinal logistic regression analysis to analyze the association between these types of board diversity and such reporting. Findings The findings suggest that the companies in the sample attribute little importance to the reporting of information pertaining to the issue of human rights. They also suggest that only the diversity of nations represented in the board of directors is significant in explaining this type of reporting. Research limitations/implications The sample includes only large companies from Western Europe and the analysis covers only one year. Originality/value To the best of the authors’ knowledge, this study provides the first empirical analysis of factors influencing human rights reporting conducted on a multiple-country setting. It is also the first investigating the association between boards of directors’ demographic diversity and such reporting.

Beyond direct relationships

2019 ◽  
Vol 31 (2) ◽  
pp. 392-412
Author(s):  
Dong-Young Kim
Keyword(s):  
Resource Dependence ◽  
Negative Binomial ◽  
Negative Binomial Regression ◽  
Resource Dependence Theory ◽  
Content Type ◽  
Dependent Relationship ◽  
Binomial Regression ◽  
Holistic Understanding ◽  
Technology Industries

Purpose The purpose of this paper is to investigate whether supplier dependence is related to innovation in supplier firms. Drawing on resource dependence theory, the authors hypothesized that supplier dependence has both positive and negative relationships to the quantity and quality of innovation. Design/methodology/approach The study is based on data collected from US companies. Negative binomial regression analysis was used to test the proposed hypothesis. Findings The authors found that the quantity of innovation of a supplier firm initially decreased and then increased with the extent of the dependence upon major customers. This finding supports the idea that the benefits of supplier dependence mitigate the negative outcomes of dependence upon major customers. Originality/value This study extends the literature on supplier dependence by empirically examining the relationship between supplier dependence and the quantity and quality of innovation within the context of high-technology industries. The authors provide a holistic understanding of the value of the dependent relationship in boosting innovation in the context of supply chain management.

What does board capital really bring to the table?

2019 ◽  
Vol 34 (3/4) ◽  
pp. 134-147 ◽  
Author(s):  
Whitney Douglas Fernandez ◽  
Yannick Thams ◽  
Mark Lehrer
Keyword(s):  
Boards Of Directors ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Performance Outcomes ◽  
Theory And Practice ◽  
Future Research ◽  
Firm Level ◽  
Content Type ◽  
Trade Offs ◽  
Board Capital

Purpose Although resource dependence theory (RDT) has substantially deepened the understanding of the function and role of boards, no systematic review of this body of work has yet been undertaken. The purpose of this paper is to synthesize prior research on the strategically relevant resources provided by board members to their organization in the light of RDT and indicate avenues for future research. Design/methodology/approach The review covers 79 research articles from 1978 to 2016 dealing with the resource provision of boards of directors. Findings Board capital research most often assumes a positive, linear relationship between board capital, resource provision and ultimately firm-level performance outcomes. This tendency tends to exclude from view the possibility of important trade-offs relevant to both theory and practice. Future research will need to incorporate more complex models that take into consideration nonlinear and curvilinear effects. The authors outline opportunities to advance board research by refining the methodological techniques employed. Originality/value By recommending investigation of the important trade-offs inherent in board composition, the authors seek to inspire future research that offers practical guidance for improving the effectiveness of corporate boards.

scholarly journals The impact of board characteristics on the financial performance of Tanzanian firms

2018 ◽  
Vol 18 (6) ◽  
pp. 1089-1106 ◽  
Author(s):  
Modest Paul Assenga ◽  
Doaa Aly ◽  
Khaled Hussainey
Keyword(s):  
Financial Performance ◽  
Resource Dependence ◽  
Gender Diversity ◽  
Resource Dependence Theory ◽  
Outside Directors ◽  
Content Type ◽  
Board Characteristics ◽  
Dependence Theory ◽  
Foreign Directors ◽  
The Impact

Purpose This paper aims to investigate the impact of board characteristics on the financial performance of listed firms in Tanzania. Board characteristics, including outside directors, board size, CEO/Chair duality, gender diversity, board skill and foreign directors are addressed in the Tanzanian context by applying two corporate governance theories, namely, agency theory and resource dependence theory. Design/methodology/approach The paper uses balanced panel data regression analysis on 80 firm-years observations (2006-2013) from annual reports, and semi-structured interviews were conducted with 12 key stakeholders. The study uses also a mixed methods approach and applies a convergent parallel design (Creswell and Plano Clark, 2011) to integrate quantitative and qualitative data. Findings It was found that in terms of agency theory, while the findings support the separation of CEO/Chairperson roles, they do not support outside directors-financial performance linkage. With regard to resource dependence theory, the findings suggest that gender diversity has a positive impact on financial performance. Furthermore, the findings do not support an association between financial performance and board size, PhD qualification and foreign directors. Practical implications The study contributes to the understanding of board-performance link and provides academic evidence to policy makers in Tanzania for current and future governance reforms. Originality/value The findings contribute to the literature by providing new and original insights that, within a developing setting, extend current understanding of the association between corporate governance and financial performance. This is predicated, also, on the use of uncommon mixed methods approach.

Roles of academic directors on US Fortune 500 boards

2009 ◽  
Vol 9 (2) ◽  
pp. 202-215 ◽  
Author(s):  
Craig A. Peterson ◽  
James Philpot
Keyword(s):  
Intellectual Capital ◽  
Resource Dependence ◽  
Fortune 500 ◽  
Public Affairs ◽  
Outside Directors ◽  
Demographic Diversity ◽  
Board Diversity ◽  
Content Type ◽  
Knowledge Based ◽  
The Us

PurposeThis paper aims to examine the prevalence of directors of US Fortune 500 firms who come from an academic background, and possible unique reasons for their appointment.Design/methodology/approachBased on extant theory of the resource‐dependence roles of non‐management directors, this study proposes and tests three hypotheses concerning distinctive reasons firms may appoint an academic to their boards. Academic directors may serve unique roles in increasing board demographic diversity, increasing firm intellectual capital, and providing links to local geographic constituents. Using year 2002 data from the US Fortune 500 firms, this study presents descriptive statistics and uses t‐tests and χ2 tests to examine hypotheses.FindingsFirms having academics on their boards have greater board demographic diversity than firms without an academic director. Firms with academic directors have the same average emphasis on knowledge‐based earnings as other firms. Academics associated with US top‐ranked universities tend to be more likely to hold board seats. Firms tend to select academic directors from the geographic regions where the firm is headquartered and have a slight tendency to use them on public affairs committees.Research limitations/implicationsThis study's findings highlight a unique non‐monitoring advantage of academic directors for firms seeking increased board diversity, and potential community/stakeholder liaisons.Practical implicationsFirms wishing to increase board diversity or improve relationships with other stakeholder groups may find academic directors useful to such efforts. Academic directors appear to be just as capable as other outside directors in developing firm intellectual capital.Originality/valueThis paper extends the present literature in resource dependence by examining academic directors, a new director subset. The paper is also unique in that it uses data collected from proxy statements, rather than survey data.

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.

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