Theoretical Interplay of Resource Dependence and Institutional Theory in Context Bound Organisations

Abstract

This conceptual study delves into the functional relationship between Resource Dependence and Institutional Theory. It describes, in particular, the interplay between resources and institutional settings on the one hand and organisations (context bound) on the other. This research reveals two paradoxical outcomes. First, context bound (Protected Designation of Origin or PDO) organisations are not necessarily resource dependent on specialised raw material producers due to the interplay between resources, home rivalry and finance; sidelining a robust relationship between resource producers and organisations. Second, institutions may not in some instances conform to institutional settings and adopt decoupling practices inappropriate to the environment by hampering the internationalisation of context bound organisations. This research which has an industry related focus shall in essence generate new insights for it attempts to lay a new foundation for future research in international business and context bound organisations therein.

Internationalization as a strategy for small and medium‐sized enterprises and the impact of regulatory environment: An emerging country perspective

“…Consequently, researchers now shift their focus on the differences in institutional frameworks between economies beyond traditional, industry and resource‐based, factors (Lee, Yamakawa, Peng, & Barney, ; Peng, Wang, & Jiang, ). For instance, combining concepts of resource‐based view theory and the institutional theory, Mandrinos and Mahdi () find that firms are not necessarily resource‐dependent, but rather institution‐dependent, and adopting inappropriate practices may hamper firms' internationalization. It is therefore necessary to incorporate both push and pull factors (Dawson & Henley, ).…”

Towards an analysis of the determinants of exports in Brazil: the perspective of exporting companies

“…In subsequent research, the number of variables can be increased to include both internal factors, related to the companies' resources and capabilities and their management (Agnihotri and Bhattacharya, 2015; López-Rodríguez et al , 2018), and external factors, such as government policies related to export promotion (Falahat et al , 2020). As Mandrinos and Mahdi (2015) pointed out, companies are not necessarily dependent on resources but rather depend on institutions; the adoption of inappropriate practices can hinder their internationalisation. Additionally, a single indicator of export performance was considered.…”

Broad span of supply chain integration: theory development

“…Moreover, if the dependence between the two or more organizations is mutually beneficial, it will increase their motivation to establish stronger relationships (Reimann and Ketchen, 2017). The focal organization will seek closer relations with others to reduce uncertainty about the availability of critical resources (Mandrinos and Mahdi, 2015). Furthermore, Drees and Heugens (2013) stated that uncertainty drives the focal organization to integrate with other organizations.…”