• Title/Summary/Keyword: Resource dependence theory

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Government-Nonprofit Service Delivery from Resource Dependence Theory: Revising with System Dynamics

  • Cho, Sung-Sook
    • Korean System Dynamics Review
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    • v.8 no.1
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    • pp.5-24
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    • 2007
  • This study explores the partnership between government and human service nonprofits in the United States from the perspective of resource dependence theory and extends the theory with system dynamics in order to better explain government-nonprofit service delivery. The article is structured as follows. First, I introduce the historical development of the government-nonprofit partnership in service delivery in the United States. Second, I present an overview of resource dependence theory for government-nonprofit service delivery, including assumptions, key elements, claims, how well it explains the government-nonprofit service delivery, and limitations. Third, I highlight the advantages of system dynamics along with the limitations of resource dependence theory, as an attempt to revise the theory. Finally, I conclude with a summary and suggestions for the next steps in theoretical development and research.

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How does Dependence on Portals Help Online Retailers' Growth? : The Moderating Effects of Firm Age and Niche Width Strategy (인터넷 포탈에 대한 자원 의존성이 온라인 쇼핑몰기업의 성장에 미치는 영향)

  • Park, Kyung Min;Mun, Hee Jin;Park, Sunju;Chung, Seungwha;Choi, Jeonghye
    • Journal of the Korean Operations Research and Management Science Society
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    • v.39 no.2
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    • pp.141-154
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    • 2014
  • It is widely confirmed that online retailers can obtain crucial resources and greater growth potential by depending on the external web portal sites as it is explained in resource dependence theory. Nevertheless, recent studies show that the effect of dependence may not always be beneficial for firms and stress the importance of finding relevant contingent factors. In this study, we identify and suggest that firms' age and niche width strategy, whether generalist or specialist, are contributing factors on moderating the positive relationship between resource dependence and firm growth. To test our hypotheses based on the theory, we have collected monthly web traffic data of online retailers and portals from March 2000 and July 2008. The empirical results lend support to our theory of the firm age having a negative interaction effect on web traffic dependence. Moreover, results verified that positive effect of depending on the portals may become greater if the online retailer is a specialist in terms of niche width.

An Empirical Study on the Vendor's Opportunism in the Collaboration between Buyer and Vendor

  • Hwang, Sunil;Suh, Eung-Kyo
    • The Journal of Industrial Distribution & Business
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    • v.8 no.5
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    • pp.53-63
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    • 2017
  • Purpose - The main feature of this study is understanding of the vendor's opportunism on the collaboration context between buyer and vendor from the buyer's viewpoint with resource dependence theory. A number of studies on opportunism have focused on opportunistic definitions and its theoretical studies. Other researches emphasize the importance of governance in ways that reduce opportunism. We think that this research could be filled with the lack of previous studies. Research design, data, and methodology - In order to accomplish research purpose, four hypotheses have been established based on the framework of resource dependence theory and previous studies. And we have used 599 survey data jointly collected by Korea Productivity Center and the Ministry of Trade, Industry and Energy. To verify these hypothesis, we have conducted multiple regression analysis with SPSS 23.0. Results - The vendor 's opportunism decreases as mutual trust with buyer becomes higher. However, as the degree of dependence of buyers on vendor resources increases, vendor's opportunism increases. And monitoring vendor's capacity has a moderating effect with buyer resource dependency to vendor's opportunism. Conclusions - This study suggest there are two options to decrease vendor's opportunism. Increasing mutual trust or decrease dependence on vendor's resources. Also, monitoring suppler's capacity could be effective when vendor's resource dependence is high.

Determinants of Department Store Sales Commissions Under Consignment Contracts: An Integrated Perspective (백화점 특약매입 거래에서 판매수수료의 결정요인 : 거래비용, 힘-의존이론과 자원기반이론의 통합적 관점)

  • Yi, Ho-Taek;Yeom, Min-Sun;Seo, Hun-Joo
    • Journal of Distribution Science
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    • v.13 no.11
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    • pp.47-58
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    • 2015
  • Purpose - This study aims to seek determinants of department store sales commission rates under consignment contracts based on transaction cost theory, the power-dependence view, and the resource-based view. A consignment contract is a unique contract where the retailer, over a given period, takes possession of goods owned by a supplier, promotes the sales of these goods, and receives a profit share from their sales. Under this contract, the supplier owns the goods until they are sold. In department stores in South Korea, over 70% of overall sales comes through consignment contracts. In other words, this is the most popular contract agreement between large retailers and vendors in South Korea. Consignment contracts yield high profits to department stores with minimal sales uncertainty, stock cost, and marketing investment. Many suppliers believe the consignment contract commission rates are too high. However, department stores disagree. They state that the commissions are not high as they generate new value for the suppliers by accumulating up-to-date merchandise and supporting various marketing programs on their behalf. Recently, consignment contracts have been critically examined and scrutinized by politicians, mass media, and the public of Korea. This study further intends to derive implications reflecting both buyer and seller perspectives as well as offer insights to policy makers in making appropriate decisions. Research design, data, and methodology - To verify the proposed research model and test hypotheses, the authors selected 164 suppliers, which currently have relationships with department stores. This study carefully investigated the reliability, content validity, convergent validity, and discriminant validity of the proposed model. The data were analyzed using SPSS 18.0 and AMOS structural equation modeling program Results - For the transaction cost theory and the power-dependence view, the results indicated that product diversity and demand volatility had a positive impact on the sales dependence on a department store. Dependence in turn had a positive effect on the sales commission under the consignment contract. Based on the resource-based view, the department store's marketing capability, the supplier's perception toward merchandising, and supporting activities could enhance the department store's channel leadership in the buyer-seller relationship. Subsequently, the channel leadership had a positive effect on the sales commission. However, product complexity had no relationship with department store dependence. Conclusions - This is the first empirical research that investigates the determinants of sales commissions under consignment contracts in the domestic retail industry. This study reveals several theoretical and practical implications for both marketing scholars and marketers. In terms of theoretical implication, this study integrated and enlarged certain theoretical background, such as transaction cost theory, the power-dependence view, and the resource-based view, to explain the determinants of sales commissions under consignment contracts that include sales revenue. From a business management viewpoint, this research offers useful insights for policy makers by applying two different perspectives, both the manufacturer and the retailer, in terms of the sales commission issue under a consignment contract.

The Sustainability of Korean Management in Global Market: Competitive Strategy and Performance in Korean ICT Industry

  • Kwak, Kyu Tae;Cheon, Youngjoon;Lee, Bong Gyou
    • KSII Transactions on Internet and Information Systems (TIIS)
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    • v.10 no.3
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    • pp.1344-1361
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    • 2016
  • ICT contents market is globally considered as an industry of high added value, where sustainability is accomplished through stories that cover wide range of consumers. However, the need for long-term internationalization strategy is growing as countless number of applications and games has pushed the local market to its limit. Thus, this research explored on the industrial characteristics and the internationalization of ICT contents firms through acquisition of competency. Based on Resource Dependence theory, the authors studied how pursuit of legitimacy and autonomy functioned in the expansion process of ICT contents firms. A survey analysis of 212 key decision makers of Korean ICT content firms were performed, to reveal that resource environment and interdependence must undergo a thorough consideration.

Significance and Method for a More Balanced Development of the Restaurant Franchise Business - Focused on Performance-Sharing Examples Between Franchisor and Franchisee - (프랜차이즈 산업 균형발전의 의미와 방안 -외식 프랜차이즈 가맹본부와 가맹점 성과의 공유사례를 중심으로-)

  • Seo, Min-Gyo;Park, Jong-Hyuk
    • The Korean Journal of Franchise Management
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    • v.5 no.1
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    • pp.65-84
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    • 2014
  • The purpose of this study is to review the theories and cases of performance sharing in the franchise industry to present a method for more effective franchise performance-sharing. To that end, this study reviewed the theory on resource dependence and the theory on inequality to describe the performance-sharing between the franchisor and the franchisee and their relationship. It also looked at the cases of a week-in cooler system at 'Beer Market', the allocation of fees for alcoholic beverage sales to franchisees, the scholarship program of 'Onigiri and Ikyudon' and 'Bonsamo' which is a franchisees' committee for Bonjuk to introduce examples of performance-sharing. Through a theoretical review and case review, this study presents five types of methods for performance-sharing. First, 'the sharing of core competence by the franchise company; second, 'the establishment of a royalty culture'; third, 'scientific analysis of markets and establishment of a revenue forecast system'; fourth, 'reinforced financial support from the franchisor'; and lastly, 'the positive application of franchisees' committees'. Such methods are expected to provide a groundwork for mutual benefit and co-prosperity between franchisor and franchisee.

The Interaction Effects of Outside Director Ratio and CEO Duality on Acquisition Performance (사외이사의 비중과 기업 인수합병 성과와의 관계: 최고경영자의 이사회 의장직 겸임에 의한 상호작용 효과)

  • Kim, Phil-Soo;Park, Young-Ryeol;Choe, Soonkyoo
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.10 no.3
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    • pp.85-97
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    • 2015
  • This study examined the effects of outside directors and CEO duality on acquisition strategies and performance of Korean firms in high-technology industry. Based on the resource dependence theory, we focused on the service and resource-dependence roles from board of directors in the process of decision-making of acquisition strategies. In addition, CEO opportunism behavior rises when CEO serves as chairperson of board and induces the negative effects on acquisition performance. Specifically, we investigated the interaction effects between outside directors ratio and CEO duality. For the period of 2004 to 2012, 246 acquisitions of Korean firms in high-technology industry were analyzed to test our intended hypotheses. Our results indicate that there exist positive relationship between outside director ratio and acquisition performance for Korean high-technology firms. Negative associations prevail between CEO duality and performance consequences of acquisitions. While outside director ratio has a positive effect on acquisition performance when there is a presence of CEO duality, negative effect prevail for outside director ratio on acquisition performance in the absence of CEO duality position to hold our interaction hypothesis. The favor of dual structure can be explained with implications referring to unity of command and strong leadership driven from CEO duality that enhances the resource dependence roles of board of directors in the context of high-technology industry acquisition behaviors rendered by Korean firms.

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An Empirical Study on the EDI Diffusion and Performance (EDI 시스템의 확산과 성과에 관한 실증적 연구)

  • Lee, Jae-Won;Lee, Young-Hwan
    • Asia pacific journal of information systems
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    • v.10 no.4
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    • pp.1-20
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    • 2000
  • Electronic Data Interchange(EDI) has the potential to improve business operations by expediting the exchange of business documents. It will also provide substantive operational and strategic benefits to the trading firms. However, the successful implementation of EDI systems requires the mutual trust and cooperation between the trading firms. The extent of EDI diffusion and performance depends on inter-organizational, intra-organizational, as well as innovation factors. Researches based on the sociopolitical process framework in the use of IT, organizational theory, resource dependence theory, and innovation diffusion theory have identified 3 inter-organizational variables(transaction climate, dependence, external IS expert support) and 4 intra-organizational variables(strategic IS planning, infrastructure, top management support, education/training,), and 3 innovation variables(compatibility, relative advantage, cost) that affect EDI diffusion. In this study, a multi-dimensional measure on EDI diffusion has been developed to capture the external and internal integration. Then, the influence of these 10 variables on the extent to which the EDI adopting firms pursue diffusion has been examined. Whether more diffusion leads to superior performance has also been studied. International trade managers from 107 firms in the trade industry participated in a field survey. The results based on a structural equation model(SEM), developed using AMOS, provide quite a strong support for the hypothesized relations. Both education/training and IT infrastructure influenced external and internal diffusion of EDI systems. Internal diffusion of EDI enables the adopting firms to improve operational and strategic performance, whereas external diffusion contributes only to operational performance.

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MNC Subsidiaries' Charitable Donations in Korea: An Exploratory Empirical Analysis (다국적기업 자회사의 한국시장 기부활동: 탐색적 실증분석)

  • Hong, Sungjin
    • Asia-Pacific Journal of Business
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    • v.13 no.3
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    • pp.171-182
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    • 2022
  • Purpose - The main purpose of this study is to test two competing hypotheses on the relationship between foreignness and corporate philanthropy drawing on the resource dependence theory. Design/methodology/approach - This study used Korean Enterprsie Survey data constructed by Korean Statistical Information Service. This study employed both OLS and Tobit models to test the hypotheses. Findings - A conventional wisdom can argue that MNC subsidiaries are more willing to give charitable donations than local firms do because they may perceive philanthropy in the host country is a good opportunity to reduce liabilities of foreignness (H1-1). On the other hand, one can argue that MNC subsidiaries are less willing to give charitable donations than local firms do because they have operational flexibility when they are coerced to engage in corporate philanthropy by host country government stakeholders (H1-2). Empirical results support the prediction that MNC subsidiaries are less likely to give charitable donations than local firms do in Korea. Research implications or Originality - Our findings can provide useful insights to researchers and managers in the sense that MNC managers can increase or decrease their charitable donations depending on the institutional contingencies in different host countries. These institutional contingencies are particularly important within a transforming context such as Korea.

Comparative study on the Differences of Broadcast Journalists' Perception on Work Autonomy by Ownership and Revenue Structure (방송사의 소유와 재원 구조 차이에 따른 기자의 자율성 인식 비교 : 자원의존이론을 중심으로)

  • Pae, Jung Kun
    • The Journal of the Korea Contents Association
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    • v.18 no.3
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    • pp.148-159
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    • 2018
  • This study empirically examined the influence of ownership structure(public/private) and revenue structure (high dependency on advertisement/low dependency on advertisement) of broadcasting companies upon journalists' perceptions regarding the degree of freedom in news reporting, the factors that limit freedom of press, satisfaction with the work autunomy and satisfaction with company's policies of news reporting and editing in light of resource dependency theory. The result showed that both the ownership structure and revenue structure of broadcasting companies influenced the journalists' perception regarding the degree of freedom in news gathering and reporting. It was also confirmed that only the revenue structure affected the level of satisfaction with work autonomy while the degree of satisfaction with the company's policies on editing and programing was influenced by the ownership structure. The perception of the factors that limit the freedom of press was found to be influenced only by the ownership structure, as did the satisfaction with policies on editing and programing. These results are very significant as they show that the level of dependence on advertising revenue affects journalists' news reporting, and that journalists of public broadcasting companies are influenced by the dependence on government or other political powers as well as on advertising revenue.