scholarly journals A Comparative Study of Antecedents to Contracting Practice in Buyer-Seller Relationships in Egypt and China

2020 ◽  
Vol 7 (12) ◽  
pp. 187-206
Author(s):  
Mahmoud A. Hammad ◽  
Ahmed Ali ◽  
Ahmed Barakat ◽  
Ahmed Dabees ◽  
Mohamed Gamil ◽  
...  
Keyword(s):  
Textile Industry ◽  
Small Firms ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Business Environment ◽  
General View ◽  
Chinese Market ◽  
Control Effect ◽  
Supplier Relationships ◽  
Relational Contracting

The purpose of this study is to analyze the influences of transaction factors on inter-firms relationships in different businesses. The study focuses on the comparison between the Chinese and Egyptian business with regarding to buyer and seller relationships in textile industry in order to find out the differences in buyer-seller relationships between Egypt and China and how the cultural factors influence the contracting practice between these two countries. Therefore, transaction cost analysis (TCA), relational contracting theory (RCT) and resource dependence theory (RDT) would act as the important tools to find out how the business relationship works in different culture background. Combining the three theories, we can conclude the general view about the transaction mechanism in the two countries. Chinese market situation, weak legal system and informal institutions combining with the “guanxi” embedded business environment make the Chinese small firms rely on the relational contracting more than formal contracting. Meanwhile, the high value for law makes Egyptians prefer to formal contracting. The findings highlight the fact that the level of contracting mechanism was found to be more positive in Egypt than in China and was statistically significant. In other words, the Egyptians tend to use the formal transactional mechanisms which emphasize legal conditions and incentive systems, whereas the Chinese prefer the relational mechanisms that govern exchanges through moral control and trust in the relationships between the buyers and suppliers. A hierarchical multiple regression approach employing the OLS regression model was carried out and the findings show that almost 30% of contracting mechanisms can be explained by the model, while the remaining percentage (70%) can be explained by other factors not included in the research model. In addition, the findings revealed that the association between supplier specific investments and contracting becomes significantly more enforced in Egypt than in China when the size of the buying firm increases. Furthermore, contracts have a control effect on buyer-supplier relationships in case of unanticipated eventualities.

The Role of Strategic Alliances in the International Organization of Industry

1993 ◽  
Vol 25 (9) ◽  
pp. 1229-1246 ◽  
Author(s):  
R Ahern
Keyword(s):  
Strategic Alliances ◽  
Small Firms ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Market Demand ◽  
Economic Activities ◽  
Partial Synthesis ◽  
Foreign Markets ◽  
Efficient Access

In this study the motivations for entering international strategic alliances are investigated. The reasons for alliance entry reflect the ways firms are restructuring economic activities. A theoretical basis for the study is built from the conceptual arguments of transaction-cost theory and resource-dependence theory. A partial synthesis of the two approaches suggests that alliances are especially well suited to the combined pursuit of increased efficiency and reduced uncertainty. The empirical investigation is based on a series of thirteen case studies, each involving a small Canadian firm and a foreign partner. Growth resulting from efficient access to foreign markets was an important reason for Canadian firms to enter alliances. Collaboration enabled small firms to learn about market demand. This information reduced the uncertainty of international marketing, and was used to guide the development and modification of products. Complementary abilities, where the Canadian firms offered technology and their foreign partners had marketing capabilities, were at the heart of most alliances. In general, alliances were considered necessary to protect proprietary information and to forge strong links with firms taking over important downstream functions.

Challenges of Women Micro Entrepreneurs in the Textile Garments Industry of Tiruppur District

GIS Business ◽  
2019 ◽  
Vol 14 (6) ◽  
pp. 253-262
Author(s):  
C. Viswapriya ◽  
Dr. S. Mayilvaganan
Keyword(s):  
Women Workers ◽  
Women Entrepreneurs ◽  
Textile Industry ◽  
Tamil Nadu ◽  
Small Firms ◽  
Business Environment ◽  
Vital Role ◽  
Social Progress ◽  
Global Business ◽  
Self Help Groups

Women entrepreneurs may be defined as the women or a group of women who commence and operate a business venture. In today’s world, women entrepreneurs are playing a vital role and have become an integral part of the global business environment for the sustained economic development and social progress. In India, though women are playing a key role in the society, their entrepreneurial ability has not yet been properly tapped due to the number of challenges faced by them. In Tamil Nadu majority of the textile and garment workforce involves women and these women workers in Textile mills are about 65% of unskilled workers. If women are developed into entrepreneurs they could contribute a lot for the development of textile industry. In Tamil Nadu, the textile industry is female dominated. There are certain unskilled and semi-skilled job categories which are specifically ear marked for women. It was found that if there is a temporary shortage of women workers, available male workers with similar background will demand a higher wage. The predominance of small firms, low qualification of the workforce and limited trade union presence, contribute to the fact that exploitation and discrimination particularly in terms of gender continues to exist in the textile and garment industry. Among the Southern States, Tamil Nadu is an important cotton textile producer. Although Tamil Nadu produces only about 6 per cent of the mill cloth of India, the State excels all other States in the production of yarn and accounts for over 44% of the total yarn production of the country. If women micro entrepreneurs are engaged in the production of readymade garments in large quantities, there is much scope for more percentage of mill cloth production in Tamil Nadu. Woman micro entrepreneurs through Self Help Groups are engaged in the production of readymade garments. These women entrepreneurs face lot of challenges in running the garment business. In this paper an attempt has been made to analyze the challenges faced by women micro entrepreneurs in the Textile industry of Tiruppur District.

scholarly journals Severe or lenient contracting with friends: the shadow of the past on contractual governance

2019 ◽  
Vol 14 (3) ◽  
pp. 370-388 ◽  
Author(s):  
Longwei Wang ◽  
Xiaodong Li ◽  
Min Zhang
Keyword(s):  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Contract Enforcement ◽  
Supplier Relationships ◽  
Content Type ◽  
Dependence Asymmetry ◽  
Contractual Governance ◽  
Contingency View ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to empirically investigate the effects of cooperation history on contractual governance and the moderating effects of dependence asymmetry on those relationships from the perspective of a weaker firm in emergent economies. Drawing from resource dependence theory and contingency theory, this paper develops a conceptual model to investigate the impact of cooperation history on contractual governance. Design/methodology/approach The authors use data from 188 buyer–supplier relationships in China Findings The authors find that cooperation history is positively associated with contractual governance when dependence asymmetry is high but negatively associated with contractual governance when dependence asymmetry is low. Furthermore, the negative moderating effect of dependence asymmetry on the relationship between cooperation history and contractual complexity is stronger than the relationship between cooperation history and contract enforcement. Originality/value This study contributes to a better understanding of how cooperation history affects contractual governance with respect to the various levels of dependence on partners by incorporating a contingency view. This study also advances the literature on interfirm governance by distinguishing contractual governance into contractual complexity and contract enforcement.

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.

scholarly journals On What Could Chinese Mining Enterprises Achieve High-Level Environmental Performance?—Based on the fsQCA Method

2021 ◽  
Vol 18 (14) ◽  
pp. 7290
Author(s):  
Zhengjie Gao ◽  
Dayi He ◽  
Shuaifang Niu
Keyword(s):  
Environmental Performance ◽  
Government Regulation ◽  
Resource Dependence ◽  
Mining Industry ◽  
Resource Dependence Theory ◽  
Public Attention ◽  
Internal Governance ◽  
Government Supervision ◽  
Countermeasures And Suggestions ◽  
High Level

Enterprise environmental performance has causal complexity. The purpose of this paper is to discover the possible combination of conditions for enterprises to achieve high environmental performance. Based on the resource dependence theory, stakeholder theory, and externality theory, this paper constructs the theoretical framework of enterprise environmental performance evaluation and applies the fsQCA method to study the major influencing factors and mechanism of the environmental performance of listed enterprises in the Chinese mining industry. Based on the data from 2016 to 2019, the results show that there are four configurations of multiple factors leading to high environmental performance. Based on these configurations, three possible paths, internally driven, internally–externally driven, and externally driven, are established to improve environmental performance. Further, we also find that, between profitability and government regulation and between enterprise size and board independence are interchangeable condition variables; public attention outweighs other factors for Chinese mining enterprises. Countermeasures and suggestions from perspectives of government supervision, public concern, and enterprise internal governance are proposed at the end the study.

Wining and Dining Government Officials: What Drives Political Networking in Chinese Private Ventures?

2020 ◽  
Vol 16 (5) ◽  
pp. 1084-1113
Author(s):  
Jianjun Zhang ◽  
Pei Sun ◽  
Kunyuan Qiao
Keyword(s):  
Emerging Economies ◽  
Resource Dependence ◽  
Institutional Environment ◽  
Resource Dependence Theory ◽  
Political Activity ◽  
Corporate Political Activity ◽  
Dyadic Relationship ◽  
Political Actors ◽  
Government Relations ◽  
The Government

ABSTRACTManagerial networking with political actors has long been recognized as a crucial co-option strategy to navigate the challenging institutional environment in emerging economies. However, we know much less about what drives the variation of political networking investment by private ventures. Drawing on resource dependence theory, we unpack the dyadic business-government relations and identify the key organizational and environmental factors that shape the power dependence relationships between private ventures and the government. By examining power imbalance and mutual dependence in this dyadic relationship and considering both the necessity and the capability of political networking, we develop hypotheses regarding the ways in which size-, connection-, and location-based dependencies affect firms’ political networking intensity. These hypotheses are tested through a unique survey of Chinese private ventures. Our study finds that political networking intensity (1) has an inverted U-shaped relationship with firm size, (2) is negatively associated with the presence of embedded political ties while positively associated with that of achieved political connections, and (3) is smaller when the focal firm is located in business development zones. This research bears rich implications for our understanding of corporate political activity in emerging economies from a resource dependence lens.

Coping with Demographic Change in Job Markets: How Age Diversity Management Contributes to Organisational Performance

2015 ◽  
Vol 29 (1) ◽  
pp. 5-30 ◽  
Author(s):  
Gisela Bieling ◽  
Ruth Maria Stock ◽  
Florian Dorozalla
Keyword(s):  
Resource Dependence ◽  
Diversity Management ◽  
Developed Countries ◽  
Resource Dependence Theory ◽  
Steady Increase ◽  
Organisational Performance ◽  
Age Diversity ◽  
Dependence Theory ◽  
Demographic Shifts ◽  
Hr Managers

Demographic shifts are altering job markets in developed countries. A steady increase in the average age of employees and a decline in the number of young, qualified workers have intensified the war for talent, resulting in highly competitive and dynamic job markets. Using resource dependence theory, this study investigates how organisations respond to such challenges. An investigation of a sample of 153 German companies provides support for the hypotheses that HR managers implement age diversity management in both appraisal and compensation practices as a response to competitive job markets which, in turn, contributes to organisational performance.

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