dependence theory
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2021 ◽  
Vol 29 (43) ◽  
pp. 109-124
Author(s):  
Mukesh Kumar Bastola

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.



2021 ◽  
Author(s):  
◽  
Thao Nguyen

<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>



2021 ◽  
Author(s):  
◽  
Thao Nguyen

<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>



2021 ◽  
Vol 7 (6) ◽  
pp. 5400-5412
Author(s):  
Wei Jianfeng ◽  
Zhang Pai

As the major carriers for the development of the regional economy and small-and-medium-sized enterprises, industry clusters are faced with challenges of sustainable development in the process of China's industrial upgrading and transformation. This study takes the development history of China's Xuchang tobacco industry cluster as the background, extracts some key concepts from Path-Dependence Theory and then constructs the relational model of path dependence elements, hoping to find out the formation mechanism of path dependence. The study shows that, firstly, learning costs, transaction costs, transformation costs and innovation risks determine what decisions to be taken for those enterprises in the clusters, and they are also the internal economic factors for formation of path-dependence. Secondly, the competence of an enterprise is the main reason accounting for the path dependence of the cluster. Lastly, habit seem to be the social cause and the highlight of the path dependence. Moreover, those path dependence elements are interactive and reciprocally enhanced.



Author(s):  
Jörg Sydow ◽  
Georg Schreyögg ◽  
Takahiro Endo

Industry dynamics are about stability and change on the field level of analysis. This chapter uses the lens of path dependence to study the emergent field of renewable energy. On this level of analysis, path dependence theory has to address not only technological but also organizational and institutional dynamics that intricately interact. More specifically, by means of such a multi-dimensional lens, this chapter will look at the increasing generation of electric energy through wind power to illustrate different industry dynamics in four countries. The United Kingdom and Japan will illustrate the persistence of an established path in generating electric energy through fossil fuels and nuclear, while the German and, more tenuously, Chinese cases serve as examples for path-breaking change and the conditions making the emergence of renewables, and in particular wind energy, possible.



2021 ◽  
Vol 28 (3) ◽  
pp. 245-273
Author(s):  
Alban Nako ◽  
Geri Pilaca

Albanian organized crime has gained attention from the media and academia due to its significant role in international criminal world. Many studies have showcased Albanian criminal groups’ main characteristics and what makes them stand out. Nevertheless, such studies lack a theoretical application that binds the findings and provides an extensive panorama of Albanian organized crime development. Implying that the formation of Albanian organized crime is not a coincidence but rather an ongoing process, this study refers to path dependence theory to explain such an occurrence. Traditionally, the study of path dependence has focused on explaining how standards or rules become reinforced and determinant in a set environment by passing through three sequential stages. Consequently, the study uses a three-phase model to analyze Albanian organized crime from its inception to its latest stage.



2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Desmond Ng ◽  
Nima Khodakarami

PurposeThis study draws on resource dependence theory (RDT) to explain a board's governance function in the United States (US) nonprofit healthcare industry. Specifically, while various nonprofit research studies have appealed to agency theory (AT) to explain the monitoring role of an outside board, RDT offers an alternative explanation that emphasizes an outside board's resource gathering role.Design/methodology/approachIn drawing on the nonprofit GuideStar database, a fixed effect (FE) panel estimation was conducted on a sample of 230 US Non Profit Healthcare Organizations (NPHCOs). This panel estimation examines the relationship between the composition of an outside board and an NPHCO’s revenue and public support performance.FindingsA key finding of this study is that the composition of an outside board involving its' number, compensation and gender impacts an NPHCO’s revenue and public support.Research limitations/implicationsThis study shows that the composition of an outside board impacts an NPHCO’s ability to gain access to external resources. As NPHCOs face increasing pressure to seek external forms of revenue support, this study suggests that boards should favor a larger number, compensation and female representation of outside members.Practical implicationsThe composition of an outsider board can offer external sources of revenue support that lower the poor's requirements for financial assistance and thus affirm an NPHCO’s identity as a charitable organization.Originality/valueAs an NPHCO’s identity as a charitable organization is dependent on serving the medical needs of the poor, an outside board not only introduces a resource gathering function that is absent in the monitoring explanations of AT, but that this resource gathering function is important to affirming this identity.



2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yibo Wang ◽  
Bai Liu

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.



Author(s):  
Chris Gavaler ◽  
Nathaniel Goldberg

Marks individually or in combination constitute images that represent objects. How do those images represent those objects? Marks vary in style, both between and within images. Images also vary in style. How do those styles relate to each other and to the objects that those images represent? Referencing a diverse range of images, we answer the first question with a response-dependence theory of image representation derived from Mark Johnston, differentiating Lockean primary qualities of marks from secondary qualities of images. We answer the second question with a perceptual theory of style derived from Paul Grice, differentiating physical style from image style, and representing conventionally from representing conversationally.



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