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).

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.

Subsidiary power: Loaned or owned? The lenses of agency theory and resource dependence theory

2019 ◽  
Vol 9 (4) ◽  
pp. 491-501 ◽  
Author(s):  
Alvaro Cuervo‐Cazurra ◽  
Ram Mudambi ◽  
Torben Pedersen
Keyword(s):  
Agency Theory ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Dependence Theory

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.

scholarly journals The Impact of Shariah Board on the Performance of Islamic Banks and the Relevance of Shariah Committee (BNM) New Ruling on the Restructuring of Islamic Financing Facility during the Pandemic Crisis

2021 ◽  
Vol 8 (Special Issue) ◽  
pp. 423-443
Author(s):  
Razali Haron ◽  
Nur Ermiedza Radzali ◽  
Naji Mansour Nomran
Keyword(s):  
Panel Data ◽  
Agency Theory ◽  
Resource Dependence ◽  
Social Performance ◽  
Resource Dependence Theory ◽  
Stewardship Theory ◽  
Islamic Banks ◽  
Performance Measurements ◽  
Dependence Theory ◽  
The Impact

This study examines the impact of Shariah Board (SB) characteristics on the financial and social performance of Islamic banks (IBs) from the perspectives of Agency Theory (AT), Stewardship Theory (ST) and the Resource Dependence Theory (RDT). To meet its objective, GMM is employed on a panel data of 15 IBs in Malaysia from 2010 to 2018 covering the pre and post implementation of IFSA 2013 with three performance measurements; ROA and ROE (financial performance) and Zakat over Equity (social performance). SB education, SB reputation, and SB expertise are positively related to IBs performance; while SB remuneration and SB cross membership are negatively related to performance. SB size is found to be insignificant. The study therefore concludes SB is relevant to the performance of IBs. The study also discusses the response of SB at the central bank (SAC-BNM) via its new ruling on financing restructuring in alleviating the hardship of IBs’ customers during the pandemic crisis.

Theoretical Perspectives on the Outsourcing of Information Systems

1995 ◽  
Vol 10 (4) ◽  
pp. 209-219 ◽  
Author(s):  
Myun J. Cheon ◽  
Varun Grover ◽  
James T.C. Teng
Keyword(s):  
Information Systems ◽  
Agency Theory ◽  
Resource Dependence ◽  
Theoretical Models ◽  
Resource Dependence Theory ◽  
Theoretical Development ◽  
Transaction Cost Theory ◽  
Contingency Model ◽  
Theoretical Perspectives ◽  
Dependence Theory

Critics have argued that the field of information systems (IS) lacks a coherent theoretical framework. This paper attempts to further the theoretical development of a critical and pervasive contemporary phenomenon, outsourcing of IS functions, by synthesizing four theoretical models (resource-based theory, resource-dependence theory, transaction cost theory and agency theory) that are useful for understanding determinants of a firm's outsourcing strategy. From these theoretical models, a contingency model of outsourcing is developed which can be used to direct empirical research.

scholarly journals The foundations of governance theory: a case for the resource-dependence perspective

2008 ◽  
Vol 5 (4) ◽  
pp. 164-172
Author(s):  
Krishna Udayasankar
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Domain Knowledge ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Knowledge System ◽  
Dependence Theory ◽  
Alternate Model ◽  
Resource Dependence Perspective ◽  
Epistemological Basis

In this paper I distinguish between the justificatory and explanatory roles of theory, and propose that the justificatory role played in the literature thus far by agency theory is subject to limitations. I therefore argue for the use of resource-dependence theory as the epistemological basis of the corporate governance domain knowledge system, and present an alternate model of corporate governance. Potential contributions of this alternate model are discussed

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.

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