Resource Dependence Theory

Resource Dependence Theory is based on the principle that an organization, such as a business firm, must engage in transactions with other actors and organizations in its environment in order to acquire resources. Although such transactions may be advantageous, they may also create dependencies that are not. Resources that the organization needs may be scarce, not always readily obtainable, or under the control of uncooperative actors. The resulting unequal exchanges generate differences in power, authority, and access to further resources. To avoid such dependencies, organizations develop strategies (as well as internal structures) designed to enhance their bargaining position in resource-related transactions. Such strategies include taking political action, increasing the organization’s scale of production, diversifying, and developing links to other organizations. Strategies such as diversifying product lines may lessen a firm’s dependence on other businesses and improve its power and leverage.[1]

See Also


  1. Defining Resource Dependence Theory Britannica

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