The postentry performance of business groups’ new venture affiliates

2018 ◽  
Vol 44 (2) ◽  
pp. 325-343
Author(s):  
Chien-Nan Chen ◽  
Chengli Tien ◽  
Bernard Gan
Keyword(s):  
Decision Making ◽  
Firm Performance ◽  
Resource Dependence ◽  
Business Groups ◽  
Relative Size ◽  
Resource Dependence Theory ◽  
Jel Classification ◽  
New Venture ◽  
Return On Equity ◽  
Dependence Theory

Using resource dependence theory, this study examines the determinants of firm performance among business groups’ new venture affiliates using a sample of 1512 new venture affiliates associated with 104 large-sized business groups in Taiwan. The empirical findings reveal that improved affiliate postentry performance is linked to the relative size of a business group’s new venture affiliate and the level of autonomy inherent in decision-making. Furthermore, when the product market of a new venture affiliate is resource-related to its affiliated business group’s main business, this affiliate may benefit from resource relatedness with an improved return on equity. JEL Classification: M10, M16, M38

Does it pay to bribe? The influence of bribery on new venture disbanding in China

2021 ◽  
Vol 46 (3) ◽  
pp. 185-196
Author(s):  
Jintong Tang ◽  
Zhi Tang
Keyword(s):  
Economic Development ◽  
Resource Dependence ◽  
Local Economic Development ◽  
New Ventures ◽  
Resource Dependence Theory ◽  
Theory And Practice ◽  
New Venture ◽  
Resource Based View ◽  
Dependence Theory ◽  
Chinese Entrepreneurs

This research extends bribery research toward entrepreneurial theory and practice by examining how bribery impacts new venture disbanding in China. Existing research suggests that bribery may enhance firms’ competitive advantage; however, building off of resource-based view and taking into consideration the institutional context in China, the current study proposes that firm bribery activity hurts new ventures by increasing the hazard of venture disbanding. Further, guided by resource dependence theory, this study examines how local economic development and organizing activity moderate the relation between bribery and disbanding. In particular, it is proposed that when local economic development is suffering, or when firms are not engaging in appropriate organizing activities, bribery will lead to higher chance of new venture disbanding. Data from Chinese entrepreneurs support these hypotheses.

Does Board Size Matter for Taiwanese Hotel Performance? Agency Theory or Resource Dependence Theory

2017 ◽  
Vol 59 (4) ◽  
pp. 317-324 ◽  
Author(s):  
Jie Wang ◽  
Ming-Hsiang Chen ◽  
Chin-Yi Fang ◽  
Li Tian
Keyword(s):  
Agency Theory ◽  
Resource Dependence ◽  
Positive Impact ◽  
Hotel Industry ◽  
Resource Dependence Theory ◽  
Board Size ◽  
Return On Equity ◽  
Hotel Performance ◽  
Dependence Theory ◽  
Size Matter

Due to the fast growing hotel industry in Taiwan, recent hospitality studies has paid attention to how various factors affect the Taiwanese hotel performance and offered interesting and valuable findings. To expand the financial literature of the Taiwanese hotel industry and the hospitality literature as a whole, this article is the first hospitality study to investigate how board size affects firm performance of publicly traded hotels in Taiwan. Panel regression test results reveal an interesting finding. Specifically, there is an inverted U-shaped relationship between board size and hotel performance in terms of return on assets, return on equity, and Tobin’s Q with an optimal value of board size equal to 10. This indicates that while board size up to 10 has a positive impact on hotel performance (supporting the resource dependence theory), board size can deteriorate hotel performance when it is larger than 10 (supporting the agency theory).

Firm–Specific Human Capital and Governance in IPO Firms: Addressing Agency and Resource Dependence Concerns

2009 ◽  
Vol 33 (4) ◽  
pp. 845-865 ◽  
Author(s):  
Jonathan D. Arthurs ◽  
Lowell W. Busenitz ◽  
Robert E. Hoskisson ◽  
Richard A. Johnson
Keyword(s):  
Human Capital ◽  
Initial Public Offering ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
New Venture ◽  
Start Up ◽  
Dependence Theory ◽  
Contingent Compensation ◽  
Public Offering ◽  
Specific Human Capital

Entrepreneurs with firm–specific human capital represent both a potential source of competitive advantage and a threat to appropriate the rents that are ultimately generated by a new venture. This situation presents interesting agency and resource dependence challenges. While potential investors in these ventures will want assurances that their interests are protected, they will also want to ensure that these key entrepreneurs remain with the organization. Using agency theory and resource dependence theory, we examine the types of governance mechanisms that are implemented in firms going through an initial public offering comparing those ventures which indicate a dependence on these critical entrepreneurs versus those that do not. Our analysis reveals that ventures exhibiting dependence on key entrepreneurs are associated with higher insider and outsider ownership by the board, greater start–up experience by the board, greater use of contingent compensation, and greater use of involuntary departure agreements.

Towards a dynamic theory of boards: An organisational life cycle approach

2009 ◽  
Vol 15 (1) ◽  
pp. 2-16 ◽  
Author(s):  
Ingrid Bonn ◽  
Andrew Pettigrew
Keyword(s):  
Decision Making ◽  
Life Cycle ◽  
Boards Of Directors ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Strategic Decision ◽  
Life Cycle Approach ◽  
List Type ◽  
Comprehensive Theory ◽  
Dependence Theory

AbstractWe propose a research agenda that can assist in developing a dynamic and comprehensive theory of boards of directors. It is based upon the concept of temporality, with time being organised around the life-cycle metaphor, and integrates research on agency theory, decision-making theory and resource dependence theory. We identify three key roles of boards of directors:1.monitoring and controlling top management;2.involvement in strategic decision-making; and3.providing access to resources and networks.Our analysis suggests that boards perform all three roles, but that these roles change over time. We propose clear researchable questions for each stage of the organisational life cycle as well as the transition between the stages.

scholarly journals Towards a Multi-theoretical Approach on the Board and Firm Performance Relationship

2020 ◽  
Vol 36 (2) ◽  
Author(s):  
Nguyen Thu Thuy Tien
Keyword(s):  
Firm Performance ◽  
Agency Theory ◽  
Theoretical Approach ◽  
Resource Dependence ◽  
Integrated Approach ◽  
Resource Dependence Theory ◽  
Limited Range ◽  
Ceo Power ◽  
Managerial Power ◽  
Dependence Theory

Recent reviews of research on company boards and firm performance relationship tend to criticise three of the main traditional theories on boards, namely Agency Theory (AT), Resource Dependence Theory (RDT), and Managerial Power Theory (MPT) for their narrow assumptions and focuses on a limited range of board tasks. This study provides a critical review on these above theories and promotes a direction towards an integrated approach with three important governance factors, namely board capability, board incentives, and CEO power for a better understanding of board-firm performance relationship.

Towards a dynamic theory of boards: An organisational life cycle approach

2009 ◽  
Vol 15 (1) ◽  
pp. 2-16 ◽  
Author(s):  
Ingrid Bonn ◽  
Andrew Pettigrew
Keyword(s):  
Decision Making ◽  
Life Cycle ◽  
Boards Of Directors ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Strategic Decision ◽  
Life Cycle Approach ◽  
List Type ◽  
Comprehensive Theory ◽  
Dependence Theory

AbstractWe propose a research agenda that can assist in developing a dynamic and comprehensive theory of boards of directors. It is based upon the concept of temporality, with time being organised around the life-cycle metaphor, and integrates research on agency theory, decision-making theory and resource dependence theory. We identify three key roles of boards of directors:1.monitoring and controlling top management;2.involvement in strategic decision-making; and3.providing access to resources and networks.Our analysis suggests that boards perform all three roles, but that these roles change over time. We propose clear researchable questions for each stage of the organisational life cycle as well as the transition between the stages.

scholarly journals Resource based view and resource dependence theory in decision making process of public organisation - research fi ndings

Management ◽  
2012 ◽  
Vol 16 (2) ◽  
pp. 16-29 ◽  
Author(s):  
Aldona Frączkiewicz-Wronka ◽  
Karolina Szymaniec
Keyword(s):  
Decision Making ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Decision Making Process ◽  
Resource Based View ◽  
The Public ◽  
Dependence Theory ◽  
Research Findings ◽  
Public Organisation ◽  
Public Organisations

AbstractResource based view and resource dependence theory in decision making process of public organisation - research findings One of the premises which build relationships between stakeholder and a public organisation are stakeholder’s resources which public organisation would like to possess and use. The other one is configuration of resources possessed by the public organisation that should allow the unit in question to realize stakeholder’s expectations.Above observations lead scientific inquiries to the two management theories - resource-based view (RBV) and resource dependence theory (RDT). The first one is orientated at resources owned by the organisation, the second one is orientated at the resources obtained from environment. The objective of this article is identification which orientation, RBV or RDT, dominates in decision making process in public organisations.

scholarly journals Board leadership structure and firm performance: An examination of resource dependence role

2011 ◽  
Vol 7 (1) ◽  
pp. 7-23 ◽  
Author(s):  
Afzalur Rashid
Keyword(s):  
Firm Performance ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Independent Directors ◽  
Governance Mechanism ◽  
Developed Country ◽  
Ceo Duality ◽  
Dependence Theory ◽  
Leadership Structure ◽  
Board Leadership Structure

This study examines if the CEO duality influence the firm economic performance in Bangladesh and the moderating effects of board composition in the form of outside independent directors. While doing so, it examines the relationship between CEO duality and firm performance during the pre appointment of outside independent directors and post appointment of outside independent directors (the role of other corporate governance mechanism as moderating variable). The finding is that there is there is a negative (non-significant) relationship between CEO duality and firm performance before appointment of outside independent directors in the board. However, independent leadership structure and firm performance is found to be positively related following the acquisition of resource (outside independent directors in the board) supporting the ’resource dependence theory’. The findings of this study partially support the ’agency theory’ and ’resource dependence theory’ but do not support the stewardship theory. This study contributes to the literature on CEO duality in the context of less a developed country.

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