• Title/Summary/Keyword: Institutional Pressures

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A New Perspective on IT Capabilities and Firm Performance: Focusing on Dual Roles of Institutional Pressures

  • Huang, Minghao;Ahn, Joong-Ho;Lee, Dongwon
    • Asia pacific journal of information systems
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    • v.24 no.1
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    • pp.1-29
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    • 2014
  • To provide a fundamental understanding on the inherent relationship between IT capabilities and sustainable firm heterogeneity, we investigate the dual roles that institutional pressures play, namely, as antecedents of IT capabilities and as moderator of the relationship between IT capabilities and IT innovation success, where IT innovation success plays a mediating role between IT capabilities and firm performance. The structural model was tested, and the results of the PLS analysis provided general support for the proposed hypotheses. IT capabilities had an indirect effect mediated by IT innovation success on firm performance. With IT activities assumed to be embedded in the institutional context, the dual roles of institutional pressures are verified. This study contributes to the literature on IT capabilities by considering both the determining role of institutional pressures on IT capabilities and the institutional context of the chain that connects IT capabilities to firm performance. The results suggest that a firm not only manages various institutional pressures to foster its IT capabilities but also adapts to different contexts with a certain level of institutional pressures to facilitate its IT capabilities and outperform its competitors, which could be sustained through IT innovation success.

Isomorphism, Human Resource Capability and Its Role in Performance Measurement and Accountability

  • WULANINGRUM, Puspita Dewi;AKBAR, Rusdi;SARI, Martdian Ratna
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.12
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    • pp.1099-1110
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    • 2020
  • This research tests the effects of institutional pressures, the use of performance measurement systems and accountability, and moderation effects of human resource capability between institutional pressures and the use of performance measurement systems in the Local Government institutions in Indonesia. The research aims to provide empirical evidence both quantitatively and qualitatively that isomorphism institutional pressures occurred in the scope of implementation of the performance measurement system and accountability in the public sector organizations and to show the importance of human resource capability enhancement in reducing external pressure impact. In addition, it tries to develop the correlation model of institutional pressures, human resource capability, implementation of the performance measurement system, and accountability of public sector organizations. The research used mixed methods with sequential explanatory design. The data collection used surveys and interviews in 209 regency/Special Region of Yogyakarta and Central Java local governments as samples. The research result indicated that the institutionalization process of the performance measurement is influenced by institutional pressures, especially coercive and mimetic pressures. Human resource capability was unable to weaken institutional pressures effects in the performance measurement system implementation. The research also proved that the use of a performance measurement system was able to improve local government institution accountability.

The Effects of Compliance Timing on Multinational Enterprises' Corporate Performance in China: An Application of Institutional Perspectives

  • Yang, Woo-Young;Han, Byoung-Sop
    • Journal of Korea Trade
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    • v.24 no.4
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    • pp.71-94
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    • 2020
  • Purpose - Multi-National Enterprises (MNEs) tend to face a high level of institutional pressures in regions with high institutional development level. When complying with institutional pressures, firms try to make decisions to maximize profit while minimizing the risks to them. The purpose of this study is to investigate the influence of the institutional development level on institutional compliance timing by MNEs and the relationship between compliance speed and corporate performance. Design/methodology - The research focuses on three main variables, which are the institutional development level (as a determination of the institutional pressure level), the firm's compliance speed (as a determination of the compliance timing), and the firm's financial performance (as a determination of the corporate performance). We collected 19,869 firm-level data from CSMAR (the China Stock Market and Accounting Research), 6,922 CSR data from RKS (the Rankins CSR Ratings), and province and city-level data from the NERIM (National Economic Research Institute Index of Marketization) and NBSC (National Bureau of Statistics of China). The firms in China were chosen for analysis, and the analysis period was from 2008 to 2017. Random Effects GLS Regression was used to test the relationships among the variables. Findings - This study examined the effect of the institutional development level on the firm's compliance speed, together with the effect of compliance speed on the firm's financial performance of the MNEs in China. We found that the institutional development level positively influenced firms' financial performances, which means the firms' financial performances are better in the region with a high institutional development level. The compliance speed of institutional practice by firms was faster in the higher level of institutional development. However, the firm's delayed compliance led to better financial performance. Originality/value - Studies in the resource dependence view of Institutional Theory often fall short in understanding the theory by overlooking the firm's active decision-making. Thus, the findings do not present a full scope of corporate performance in this regard. This study not only found a way to test the role of a firm's independent decision-making (i.e., compliance timing) when facing the institutional pressure but also prove the significant role of the compliance timing on corporate performance. Also, we were able to test the effect of institutional development level, controlling location-specific variables because we used CSR performance data for MNEs operating in China. Lastly, by doing the above, the findings of this study suggest practical implications to the industry practitioners in MNEs.

An Understanding the Effect of Institutional Pressures on IT Investment Decision Making of Managers (제도적 압력이 IT투자 의사결정에 미치는 영향)

  • Choi, Sung-Wook;Yim, Myung-Seong
    • Journal of Digital Convergence
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    • v.10 no.11
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    • pp.175-183
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    • 2012
  • The purpose of this study is to investigate the relationships between institutional pressures and IT investment decision making of management. To analyze the proposed model, we distribute survey questionnaires to mid-size IT firms and collect data from them. Furthermore, the proposed model was tested by PLS(Partial Least Squares) technique. We found that coercive pressure and normative pressure have an effect on mimetic pressure. However, these two pressures do not influence the IT investment decision making. The mimetic pressure has an effect on the IT investment decision making. The conclusions and implications are discussed.

The Effect of Institutional Pressure on Firm's Compliance and Financial Performance in China: Focused on Institutional Theory and Stakeholder Theory (제도적 압력이 중국 기업의 순응 수준 및 기업 가치에 미치는 영향: 제도이론과 이해관계자이론을 중심으로)

  • Woo-Young Yang;Byoung-Sop Han
    • Korea Trade Review
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    • v.45 no.3
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    • pp.91-117
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    • 2020
  • This study aimed to understand the relationships among the institutional pressure and the level of compliance and corporate value. The research focuses on four main variables, which are regulatory pressure, normative pressure, and cultural-cognitive pressure as the institutional pressure, and the CSR score as the level of the firm's compliance. We examined the impact of the institutional pressure on the firm's compliance-level, together with the effect of compliance level on the corporate value. We analyzed the 3,792 CSR data listed in China's A market and 31 province and city-level data from China. Results showed that institutional pressure had a positive influence on the firm's compliance level. The corporate value was greater with a high compliance level when the institutional pressure was high. The firm's compliance level negatively influenced corporate value when the institutional pressure was low. This study took into account a level of institutional pressures in three dimensions when investigating the effect of CSR compliance level on the corporate value. Thus, this study has a unique academic contribution by demonstrating that CSR activities can have a positive or negative effect depending on the institutional environment for each firm. The findings of this study also provide valuable insights to industry practitioners by suggesting the importance of considering the institution-specific condition when deciding to comply with the institutional pressure.

Effects of CEO's Demographic Characteristics on Decoupling (최고 경영자의 인구통계학적 특성이 조직 디커플링 행위에 미치는 영향)

  • Kim, Yong;Choi, Youngjun
    • Knowledge Management Research
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    • v.21 no.1
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    • pp.79-98
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    • 2020
  • The majority of research on institutional theory suggests that the new institutional practices presented by national governments and expert groups is a legitimate demand by society, and that the organization is a passive actor that accepts it. However, individual organizations often perform so-called decoupling acts that run their organizations in their own way instead of following the way the system requires, despite the pressures of a strong institutional environment. In this study, the decoupling behavior of these organizations can be varied by the characteristics of the highest decision maker in the organization based on the upper-echelon theory(UET) even if there is no difference in pressure experienced by individual organizations, and their relationship is empirically analyzed among secondary educational institutions that are relatively strongly regulated by the government. According to the analysis of 192 high schools in Korea, the female principal, the younger the principal, and the higher the educational background, the more likely they are to engage in decoupling behavior that are different from the intent and content of government policies. Therefore, from the results of this study, meaningful theoretical and practical implications can be provided for researchers and managers in the field of knowledge management research.

An Exploratory Study on the Attitudes and the Perceptions Toward a Single Life (독신에 대한 인식과 만족도에 관한 탐색적 연구)

  • 박충선
    • Journal of Families and Better Life
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    • v.20 no.6
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    • pp.163-171
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    • 2002
  • The purpose of this study is to examine the attitudes and the perceptions toward a single life and life satisfaction among male and female singles. In this study, a total of 160 singles aged 30 to 39 were interviewed using a questionnaire on socio-economic status, the attitudes and perceptions toward a single life, and life satisfaction. The data were analyzed using frequencies, percentages and chi-square. The major findings of this study are as follows; 1) the socio-economic status of singles are higher than that of the married ones, showing a high level of income, education, and jobs. The 54.4% of the respondents showed that they remained as singles, because they have not met desirable partners yet, and the 20.9% answer that the main reasons for being a single are working and studying. The attitudes and the perceptions toward a single life were measured in six areas; freedom, self-achievement, self-development, institutional pressure. anxiety of support systems, and sex discrimination toward singles. The freedom of a single life was shown to have significant relationships with education and income. The self-achievement, self-development, and the level of anxiety about support systems were shown to be related to the sex of singles, indicating that single women got more benefits than single men. Single men experienced more institutional pressures such as marriage pressures and filial piety than single women. There was no difference in the level of acceptance to live as a single in terms of sex. Finally, life satisfaction with a single life turned to have significant relationships with sex, age, education, and income.

Comparison of the Casts of Care and Nursing Services for Terminally III Patients Receiving Home Hospice Care in Comparison to Institutional Care (말기 폐암환자를 대상으로 한 가정 호스피스와 병원입원치료의 비교 -서비스 내용과 건강관리비용 중심-)

  • Lee, Tae-Wha;Lee, Won-Hee;Kim, Myung-Sil
    • Journal of Korean Academy of Nursing
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    • v.30 no.4
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    • pp.1045-1054
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    • 2000
  • As cost pressures have escalated, policy makers, politicians, health care providers and families have tried to devise ways to reduce health care costs. While originally developed to enhance patient control and to provide better care at the end of life, hospice care has recently received significant attention as a mean of reducing health care costs. As a program providing care for patients who are dying at their homes, hospice has expanded slowly since the opening of the first hospice in Korea in 1963. Therefore, a variety of services that responds to the needs and concerns of many dying people and their families is limited The purpose of this study was to determine the potential cost savings at the end of life among patients who used home hospice compared with the patients who received institutional care in Korea. This study used a retrospective, descriptive design. The sample for this study included 46 patients who died of lung cancer: 25 patients who received home hospice care and 21 patients who received institutional care. Data on patient characteristics, kinds and frequencies of provided treatment and nursing services, and hospice and hospital charges during the last month before death were collected. Cost of care was measured by the average cost per patient per day in the last month of life. The results of the study indicated that there were significant differences in average cost of care between home hospice sample and institutional care sample (t=9.956, p<.001; home hospice sample: M=18,102 won, institutional care sample: M=317,578 won). The cost of the home hospice sample was approximately 6% of the cost of institutional care. The majority of the home hospice nursing services were education (35.7%) and supportive counseling (25.2%), followed by medication management (13.6%), assessment (12.1%), basic nursing (7.2%), treatment (5.5%) and others. In institutional care sample, basic nursing and treatment were more emphasized than education or supportive counseling among the nursing services provided. The results of this study showed the potential for hospice to reduce costs and implications for policymakers and clinicians to incorporate hospice program into the formal health care delivery system in Korea.

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A Study on the Effects of the Institutional Pressure on the Process of Implementation and Appropriation of System: M-EMRS in Hospital Organization (시스템의 도입과 전유 과정에 영향을 미치는 제도적 압력에 관한 연구: 병원조직의 모바일 전자의무기록 시스템을 대상으로)

  • Lee, Zoon-Ky;Shin, Ho-Kyoung;Choi, Hee-Jae
    • Asia pacific journal of information systems
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    • v.19 no.2
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    • pp.95-116
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    • 2009
  • Increasingly the institutional theory has been an important theoretical view of decision making process and IT adoption in many academic researches. This study used the institutional theory as a lens through which we can understand the factors that enable the effective appropriation of advanced information technology. It posits that mimetic, coercive, and normative pressures existing in an institutionalized environment could influence the participation of top managers or decision makers and the involvement of users toward an effective use of IT in their tasks. Since the introduction of IT, organizational members have been using IT in their daily tasks, creating and recreating rules and resources according to their own methods and needs. That is to say, the adaptation process of the IT and outcomes are different among organizations. The previous studies on a diverse use of IT refer to the appropriation of technology from the social technology view. Users appropriate IT through not only technology itself, but also in terms of how they use it or how they make the social practice in their use of it. In this study, the concepts of institutional pressure, appropriation, participation of decision makers, and involvement of users toward the appropriation are explored in the context of the appropriation of the mobile electronic medical record system (M-EMRS) in particularly a hospital setting. Based on the conceptual definition of institutional pressure, participation and involvement, operational measures are reconstructed. Furthermore, the concept of appropriation is measured in the aspect of three sub-constructs-consensus on appropriation, faithful appropriation, and attitude of use. Grounded in the relevant theories to appropriation of IT, we developed a research framework in which the effects of institutional pressure, participation and involvement on the appropriation of IT are analyzed. Within this theoretical framework, we formulated several hypotheses. We developed a second order institutional pressure and appropriation construct. After establishing its validity and reliability, we tested the hypotheses with empirical data from 101 users in 3 hospitals which had adopted and used the M-EMRS. We examined the mediating effect of the participation of decision makers and the involvement of users on the appropriation and empirically validated their relationships. The results show that the mimetic, coercive, and normative institutional pressure has an effect on the participation of decision makers and the involvement of users in the appropriation of IT while the participation of decision makers and the involvement of users have an effect on the appropriation of IT. The results also suggest that the institutional pressure and the participation of decision makers influence the involvement of users toward an appropriation of IT. Our results emphasize the mediating effect of the institutional pressure on the appropriation of IT. Namely, the higher degree of the participation of decision makers and the involvement of users, the more effective appropriation users will represent. These results provide strong support for institutional-based variables as predictors of appropriation. These findings also indicate that organizations should focus on the role of participation of decision makers and the involvement of users for the purpose of effective appropriation, and these are the practical implications of our study. The theoretical contribution of this study is lies in the integrated model of the effect of institutional pressure on the appropriation of IT. The results are consistent with the institutional theory and support previous studies on adaptive structuration theory.

Cooperative Management Framework for the Transboundary Coastal Area in the Western Part of Korean Peninsula (서해연안 접경지역 현황 및 남북한 협력관리 방안)

  • Nam, Jung-Ho;Kang, Dae-Seok
    • Journal of Environmental Policy
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    • v.3 no.2
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    • pp.1-29
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    • 2004
  • As a result of very limited access due to the military confrontation between South and North Koreas for the last five decades, ecosystems in the transboundary coastal area in the western part of Korean Peninsula have been protected from intensive developments in both Koreas. In the core of the recent two military collisions lies the fishery resources represented as blue crabs as well as the politico-military aspect. Increasing development pressures from both sides as reflected in the South Korea supporting the construction of an industrial complex in Kaesung, North Korea, is the main factor which threatens the sustainable resource base in this region. This research is aimed to develop a cooperative management system for the well-preserved transboundary coastal area between South Korea and North Korea. The Pressure-State-Response (PSR) framework of OECD was used to assess environmental conditions, socioeconomic pressures on the environment of the region, and policy responses of both Koreas to those pressures. Protection of ecosystems, peace settlement, and prosperity of the region and the entire peninsula were proposed as the management goals of the cooperative management system. The designation of the area as a Co-managed Marine Protected Area System (COMPAS) through close cooperation among South Korea, North Korea, and international entities was suggested as a way to achieve those goals. Revision of legal and institutional mechanisms, strengthening knowledge base for optimal COMPAS management, integration of the marine protected area and DMZ (demilitarized zone) ecosystem, enhancing stakeholder participation, building international partnership, and securing financial resources were presented as six management strategies.

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