How can suppliers increase their buyers’ CSR engagement: the role of internal and relational factors

PurposeBuyer engagement proves important supports for suppliers' corporate social responsibility (CSR); however, little is known about whether and how buyer CSR engagement can be actively searched for by a supplier and what activities and policies of suppliers could enhance buyer CSR engagement. From the perspective of resource dependence theory, this study aims to explore how suppliers seek to achieve buyers' CSR engagement.Design/methodology/approachThe proposed model and hypotheses were tested by structural equation modeling methodology using survey data collected from 243 manufacturing and service firms in China.FindingsThe results show that instrumental CSR motives and internalization of CSR policies jointly improve buyers' dependence, which in turn increases buyers' CSR engagement. In addition, this study investigates the influence of suppliers' trust on the effect of buyers' dependence on buyers' CSR engagement and finds a negative moderating effect on the dependence–engagement relation.Practical implicationsThe findings show that suppliers can actively engage in CSR to strengthen their position and improve the buyer CSR engagement. In fact, proactive CSR policies and implementation do pay off in the long run for them.Originality/valueThis study offers a fresh perspective on the role of suppliers in improving CSR. In contrast to much of the literature that has considered buyer-initiated practices and policies, this is the first theoretical and empirical investigation into how suppliers can increase the buyer CSR engagement.

Linkage Between Inclusive Digital Finance and High-Tech Enterprise Innovation Performance: Role of Debt and Equity Financing

This study investigates the relationship between digital financial inclusion, external financing, and the innovation performance of high-tech enterprises in China. The choice of corporate financing methods is an important part of organizational behavioral psychology, and different financing models will have a certain effect on organizational performance, especially in the digital economy environment. Therefore, based on resource dependence theory and financing constraint theory, the present study utilizes the panel data collected from the China Stock Market & Accounting Research (CSMAR) database from 2011 to 2020 of 112 companies in the Yangtze River Delta region and the “The Peking University Digital Financial Inclusion Index of China (PKU-DFIIC)” released by the Peking University Digital Finance Research Center and Ant Financial Group. The results show that the Digital Financial Inclusion Index (DFIIC) has a significant positive correlation with the innovation performance of high-tech enterprises. The higher the level of debt financing, the stronger the role of digital financial inclusion in promoting innovation performance. Investigating the DFIIC in terms of coverage breadth and usage depth, we find that usage depth does not significantly encourage innovation performance. The effect of the interaction between coverage breadth and external financing is consistent with the results for the DFIIC. The study suggests that equity financing promotes the usage depth of the DFIIC in state-owned enterprises. In contrast, debt financing promotes the coverage breadth of non-state-owned enterprises. Finally, we propose relevant policy recommendations based on the research results. It includes in-depth popularization of inclusive finance in the daily operations of enterprises at the technical level, refinement of external financing policy incentives for enterprises based on the characteristics of ownership, and strengthening the research of technologies such as big data, artificial intelligence (AI), and cloud computing. The paper presents a range of theoretical and practical implications for practitioners and academics relevant to high-tech enterprises.

Impact of corporate network position on strategic risk and company’s performance – evidence from Poland

Purpose The purpose of this study is to investigate the links between a company’s position in a corporate network with its financial performance and strategic risk in the context of the largest Central European stock market. Design/methodology/approach This study integrates the theory of social network analysis (SNA) with corporate governance theory with a special focus on resource dependence theory. Using the framework of network social analysis, the authors use network measures of social capital and embeddedness. Findings The results of studying companies listed on the Polish stock exchange indicate that a company’s corporate network position has a significant negative impact on strategic risk while having no influence on its financial performance. The research also highlights the importance of a firm’s corporate governance model for both performance and strategic risk. Research limitations/implications The data collected, and SNA measures used made it possible to conduct a cross-sectional study. Compared to longitudinal studies, this type of study has a couple of disadvantages addressed in the paper. In the future, the dependencies observed in this study should be tested using longer-term data. Originality/value To the best of the author’s knowledge, this is the first paper integrating the corporate personal and capital networks to test risk and performance dependencies in the context of Poland’s corporate governance model. The findings and conclusions can also be applied to analyzing Central and Eastern Europe stock markets.

The nasty face of the liability of foreignness: MNCs and rent extraction

Purpose This study aims to clarify the factors that act as a buffer to rent extraction from multi-national corporations (MNCs) in exchange relationships with the host country’s political actors. Design/methodology/approach This study proposes a conceptual model of the factors that determine rent extraction by host country political actors from MNCs. The model identifies the sources of power the MNC can use to alleviate the power imbalance relative to the political actor to decrease rent extraction. Additionally, it identifies the factors that constrain the power-advantaged political actor, thus moderating the relationship between power imbalance and rent extraction. Findings This conceptual paper’s propositions remain for future empirical validation. Originality/value This study integrates insights from the international business literature and resource dependence theory (RDT) to identify the determinants of firm-specific rent extraction risk for MNCs. First, the model sheds light on the heterogeneity among MNCs in their susceptibility to rent extraction and their ability to manage their liability of foreignness in the host country. Second, by integrating the horizontal and vertical distribution of power in the political environment to analyze the power-dependence relationship between the MNC and host country political actors, the framework addresses a shortcoming of RDT and accounts for the dynamics of the external environment for MNCs managing their dependencies. This study also provides a basis for discussing the rent extraction MNCs face worldwide and lays the foundation for future empirical works.

NGO Regulation: Themes and Debates with Reference to Nepal

Since the 1980s, due to the failure of previous development strategies, nongovernmental organizations have emerged as major actors in development, particularly in developing countries like Nepal. However, in recent years, most countries have perceived that NGOs are not operating genuinely to fulfill their expected goals. In this context, this paper set out to answer two questions: why NGOs tend to represent donors' preferences and why developing countries like Nepal become unable to adopt strict NGO regulations. It is based on the analysis of archival documents and review of previous study findings and draws insights from resource dependence theory. It concludes that when NGOs depend on external donors for financial resources, they are compelled to represent donor's interests. Similarly, aid-dependent developing countries like Nepal often hesitate to adopt strict NGO regulations because of the fear of external pressure from their donor agencies. Thus, resource dependency makes both NGOs and the governments unable to resist the pressure of donor agencies. Its conclusions can be useful to adopt an appropriate framework to regulate NGOs in Nepal.

Exploring the Factors Affecting Technology Transfer in Government-Funded Research Institutes: The Korean Case

Based on the resource dependence theory and the resource-based view, this study examined the impact of the resources and capabilities of government-funded research institutes (GRIs) on technology transfer. Panel analysis was performed on 21 GRIs in South Korea representing three mission types—basic future leading, public infrastructure, and industrialization—for the 2015–2019 period. The analysis confirmed that the factors affecting technology transfer performance differed among GRIs depending on their mission type. For basic future leading GRIs, the number of technology transfer cases was strongly associated with the number of research personnel, while there was a negative relationship between technology transfer and the total budget, the number of research publications, and the number of patent registrations. None of the variables affected the revenue from technology fees. Researchers at these GRIs appear to have a strong motivation for technology transfer, but the priority for resource allocation at the institutional level is the production of papers and patents rather than technology transfer. For public infrastructure GRIs, the number of patents held and the number of technology licensing office (TLO) personnel had a positive impact on the number of technology transfer cases, while none of the variables affected the revenue from technology fees. Thus, the number of patents is more favorable for technology transfer at this type of GRI compared to those that pursue a mission of basic future leading, possibly because their research focus is more related to engineering than to basic science. For industrialization GRIs, the number of TLO personnel affected the number of cases of technology transfer, and the number of patent registrations and TLO personnel affected the revenue from technology fees. The speed of technology development and industrial application is thus much faster in industrialization GRIs than in the other GRI types. The results of this analysis show that mission attributes are important drivers of technology transfer performance. This study thus offers policy implications by illustrating those different resources should be provided to different types of GRI to optimize their technology transfer performance.

Value cocreation in new service development: a process-based view of resource dependency

Purpose This study aims to examine value cocreation in terms of interfirm collaborations between service firms, their business customers and business partners at different stages of a new service development (NSD) process. Design/methodology/approach The study develops and tests hypotheses that examine the roles played by business customers and partners in NSD, assuming resource dependency of the focal firm during three NSD stages (ideation, development and deployment). Empirical data were collected from 200 NSD projects and structural equation modelling was used to test the hypotheses. Findings The results show that business customer collaboration has a positive effect on ideation performance and development performance, whereas business partner collaboration has a positive effect on deployment performance. These finding support the notion that the value cocreating roles of business customers and partners vary across NSD stages. Research limitations/implications Future research should focus on how business partners can be actively involved in the NSD process and how the interests of different parties can be safeguarded. The use of longitudinal data will allow a better examination of the process dynamics. Practical implications The study provides managerial implications for service managers in terms of acquiring and allocating resources needed from business customers and partners during different NSD stages. Originality/value The study contributes to the growing literature on value cocreation in NSD by empirically demonstrating the respective performance contributions of business customers and partners during different stages of NSD. Moreover, the results also shed light on interfirm collaboration mechanisms from the perspective of resource dependence theory.

Escaping the Exploitation Trap of Power-Disadvantaged Firms in Asymmetric Networks: A Study of Vietnamese Contract Manufacturing Exporters in Buyer-Driven Global Value Chains

<p>This study investigates how power-disadvantaged firms in power asymmetric networks can improve their performance. Drawing on theoretical insights from the Resource-Based Theory and the Resource Dependence Theory, the proposed model suggests that when participating in power asymmetric networks, the exploitation strategy of power-disadvantaged firms affects their exploration strategy. While these two strategies are related, their influences on performance through firm competitive capability are different. Exploitation strategy negatively impacts firm competitive capability whereas exploration strategy positively impacts firm competitive capability. The model further posits that the impact of exploitation and exploration strategies on competitive capability depends on absorptive capacity of the firm. The model is tested on Vietnamese contract manufacturing exporters who participate in buyer-driven global value chains, where the exporting firms are dominated by powerful international buyers. The study employs a mixed-methods approach to test the proposed conceptual model. Survey data was collected from a sample of 154 Vietnamese contract manufacturing exporters following the drop-and-collect method. At the same time, ten semi-structured interviews were conducted with key informants from top management teams of Vietnamese contract manufacturing exporters to seek contextual details for the enhancement and triangulation of the survey findings. The survey data were analysed using the partial least square structural equation modelling technique, whereas the interview data were examined using theoretical thematic analysis. The results broadly support the proposed model for Vietnamese contract manufacturing exporters. The findings of this study indicate that power-disadvantaged firms in power asymmetric inter-organisational networks benefit from the dual practice of exploitation and exploration strategies. The study shows that exploitation strategy motivates exploration strategy in this type of interfirm linkage. This motivation is primarily shaped by the power imbalance structure. This finding confirms the explanation for the behaviour of power-disadvantaged firms in asymmetric relationships advanced by the Resource Dependence Theory. Moreover, the study also contributes to the Resource-Based Theory by emphasising the critical role of competitive capability in explaining firm performance. Competitive capability is found to mediate the relationships between exploitation strategy, exploration strategy and firm performance. Furthermore, the links between exploration strategy and competitive capability act as serial multiple mediators transmitting the influence of exploitation strategy on performance. In addition, the influences of exploitation strategy and exploration strategy on firm competitive capability are found to be intensified by firm absorptive capacity. Thus, an alignment of exploitation strategy, exploration strategy, competitive capability, and absorptive capacity enhances the performance of contract manufacturing exporters in buyer-driven global value chains.</p>

Escaping the Exploitation Trap of Power-Disadvantaged Firms in Asymmetric Networks: A Study of Vietnamese Contract Manufacturing Exporters in Buyer-Driven Global Value Chains

<p>This study investigates how power-disadvantaged firms in power asymmetric networks can improve their performance. Drawing on theoretical insights from the Resource-Based Theory and the Resource Dependence Theory, the proposed model suggests that when participating in power asymmetric networks, the exploitation strategy of power-disadvantaged firms affects their exploration strategy. While these two strategies are related, their influences on performance through firm competitive capability are different. Exploitation strategy negatively impacts firm competitive capability whereas exploration strategy positively impacts firm competitive capability. The model further posits that the impact of exploitation and exploration strategies on competitive capability depends on absorptive capacity of the firm. The model is tested on Vietnamese contract manufacturing exporters who participate in buyer-driven global value chains, where the exporting firms are dominated by powerful international buyers. The study employs a mixed-methods approach to test the proposed conceptual model. Survey data was collected from a sample of 154 Vietnamese contract manufacturing exporters following the drop-and-collect method. At the same time, ten semi-structured interviews were conducted with key informants from top management teams of Vietnamese contract manufacturing exporters to seek contextual details for the enhancement and triangulation of the survey findings. The survey data were analysed using the partial least square structural equation modelling technique, whereas the interview data were examined using theoretical thematic analysis. The results broadly support the proposed model for Vietnamese contract manufacturing exporters. The findings of this study indicate that power-disadvantaged firms in power asymmetric inter-organisational networks benefit from the dual practice of exploitation and exploration strategies. The study shows that exploitation strategy motivates exploration strategy in this type of interfirm linkage. This motivation is primarily shaped by the power imbalance structure. This finding confirms the explanation for the behaviour of power-disadvantaged firms in asymmetric relationships advanced by the Resource Dependence Theory. Moreover, the study also contributes to the Resource-Based Theory by emphasising the critical role of competitive capability in explaining firm performance. Competitive capability is found to mediate the relationships between exploitation strategy, exploration strategy and firm performance. Furthermore, the links between exploration strategy and competitive capability act as serial multiple mediators transmitting the influence of exploitation strategy on performance. In addition, the influences of exploitation strategy and exploration strategy on firm competitive capability are found to be intensified by firm absorptive capacity. Thus, an alignment of exploitation strategy, exploration strategy, competitive capability, and absorptive capacity enhances the performance of contract manufacturing exporters in buyer-driven global value chains.</p>

Seven Important Theories in Information Management and Information System Empirical Research: A Systematic Review and Future Directions

The fragmentation of fundamental theory has increasingly affected the development of information management (IM) and information system (IS) empirical research, while limited attempts have been made to systematically review the theories which are fundamental to the extant IM and IS literature. Therefore, based on the analysis of the empirical studies in the IM and IS field in the past 20 years, we identify seven relatively important but less summarized theories in the IM and IS field: transactive memory system (TMS), impression management, flow, structural holes, resource dependence theory (RDT), social presence theory (SPT), and the illusion of control (IC). Hence, we try to offer a systematic review of these theories by synthesizing the extant findings while identifying the possible directions for future studies. Our review made several significant contributions to both proposing theoretical and methodological trends in the respective theories.