Synthesizing and Extending Resource Dependence Theory

By J. Drees, Pursey PMAR Heugens. 2013

476 citations recorded by the source corpus.

Resource dependence theory (RDT) has long been a premier framework for understanding organization-environmental relations, but an empirical synthesis of its predictions is still lacking. Using meta-analysis, we consolidate 157 tests of RDT and corroborate its main predictions: organizations respond to resource dependencies by forming interorganizational arrangements like interlocks, alliances, joint ventures, in-sourcing arrangements, and mergers and acquisitions. In turn, these arrangements make them more autonomous and more legitimate. We also extend RDT in three ways. First, we “unpack” the theory by showing that the mechanisms linking arrangement formation to organizational autonomy and legitimacy differ across arrangements. Second, we address the question whether RDT is also a theory of organizational performance. We find that whereas autonomy positively mediates the relationship between arrangement formation and performance, legitimacy does not. This suggests that RDT can also explain organizational actions that have societal acceptance rather than economic performance as an ulterior motive. Third, we assess whether competition law is a boundary condition to RDT’s prescriptions. Specifically, we show that the adoption of the Horizontal Merger Guidelines in the U.S. has caused organizations to “flee” from mergers to less regulated arrangements like alliances and joint ventures, and has hurt the profitability of the remaining mergers.

View Paper: https://www.semanticscholar.org/paper/cd710172a1d71646d7e2fb10941a28c999717580

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Citations in the corpus

Human Capital and CEO Compensation during Institutional Transitions (2015, unknown): “As a leading theoretical perspective advocated by Pfeffer and Salancik (1978), resource dependence theory posits that firms engage in strategic actions to enhance their control of the resources needed for survival and prosperity (Drees and Heugens, 2013; Hillman et al., 2009; Wry et al., 2013).”
Advancing Theory by Assessing Boundary Conditions With Metaregression: A Critical Review and Best-Practice Recommendations (2018, background): “…based on metaregression have already provided important theoretical contributions in various topical areas, such as resource dependence theory (Drees & Heugens, 2013), counterproductive behaviors (Gonzalez-Mulé, Mount, & Oh, 2014), transfer of training (Blume et al., 2010), and turnover…”
The association between risk disclosure and firm characteristics: a meta-analysis (2016, background): “While narrative reviews are important, they might be vulnerable to biased representations of a body of literature and easily lead to false inferences (Drees and Heugens 2013).”
The impact of multi-layer governance on bank risk disclosure in emerging markets: the case of Middle East and North Africa (2019, background): “With a particular focus on Islamic banks, their SSBs can be a mechanism for securing such resources and legitimising their banks ’ operations and performance (Drees & Heugens, 2013; Oliveira, Rodrigues, & Craig, 2011; Suchman, 1995).”
Stakeholders' Attributes, Behaviors, and Decision-Making Strategies in Construction Projects: Importance and Correlations in Practice (2014, methodology): “Freeman and Reed (1983) thought stakeholders’ power ranges from the formalistic or voting power (mainly referring to authority hierarchy, shareholder funds, or minority interests) to economic power (marketplace decisions) and to political power (use of political process). Most stakeholder studies in”
Board Interlocks and Firm Performance: Toward a Combined Agency–Resource Dependence Perspective (2018, unknown): “Recent meta-analytic examinations of resource dependency theory generally support the positive relationship between interlocks and firm performance (Drees & Heugens, 2013).”