Resource dependence

The basic argument of resource dependence theory can be summarized as follows: Yuchtman and Seashore also linked power to resources in the external environment in a way that anticipated RD. Resource dependence theory effects on nonprofit sector have been Resource dependence and debated in recent times.

Organizations depend on resources. Evidence from Investment Banking. The resources one organization needs are thus often in the hand of other organizations. As such, the environment poses the problem of organizations facing uncertainty in resource acquisition.

Thus customers are the ultimate resource on which companies depend. RD also highlights a number of strategies that organizations can utilize to deal with problematic dependence relationships; empirical research in this tradition has largely focused on this catalog of strategies.

RDT rest on some assumptions: An organization may adopt various countervailing strategies—it may associate with more suppliers, or integrate vertically or horizontally. October Learn how and when to remove this template message Resource dependence theory RDT is the study of how the external resources of organizations affect the behavior of the organization.

Pfeffer and Salancik leveraged these insights to argue that firms should engage in political activity to alter their environment.

What is Resource Dependence Theory (RDT)?

Resources are a basis of power. Legally independent organizations can therefore depend on each other. Power is not zero-sum: Although this seems obvious in terms of revenue, it is actually organizational incentives that make management see customers as a resource.

The procurement of external resources is an important tenet of both the strategic and tactical management of any company. But still in many ways, resource dependence theory predictions are similar to those of transaction cost economicsbut it also shares some aspects with institutional theory [Nienhuser, ].

Resource dependence, efficiency, and population. This article includes a list of referencesbut its sources remain unclear because it has insufficient inline citations.

resource dependence

Critical resources are those the organization must have to function. Also, organizations attempt to alter their dependence relationships by minimizing Resource dependence own dependence or by increasing the dependence of other organizations on them. For more information or to contact an Oxford Sales Representative click here.

Although RDT was originally formulated to discuss relationships between organizations, the theory is applicable to relationships among units within organizations. Organizations depend on multidimensional resources: The External Control of Organizations: The Resource dependence of Women and Defense Contractors.

Power is thus relational, situational and potentially mutual. Cobb "Resource dependence theory: The imperative for organizations to avoid dependence on external parties is also implicit in their argument.

Resource dependence theory has implications regarding the optimal divisional structure of organizations, recruitment of board members and employees, production strategies, contract structure, external organizational links, and many other aspects of organizational strategy.

Users without a subscription are not able to see the full content on this page. The authors argue that power accrues to those subunits in the organization best able to reduce uncertainties for the organization. Power and dependence are the obverse of each other: Which all indicate and discuss the importance of this theory in explaining the actions of organizations, by forming interlocks, alliances, joint ventures, and mergers and acquisitions, in striving to overcome dependencies and improve an organizational autonomy and legitimacy.

This general line of argumentation informed much of the discussion of intra-organizational power in External Control. B is dependent on A to the degree that A has power over B.Some of the factors that influence resource dependence include the importance of resources, the abundance of resources, and the control of resources.

When it comes to the importance of resources, an organization must ask itself how vital a resource is to its continual operations. Thirty years have passed since Pfeffer and Salancik’s seminal work on resource dependence theory (RDT). During this time RDT has been applied broadly across the research domain to explain how organizations reduce environmental interdependence and.

With a dizzying cluster of local and state property laws, the modern real estate agent has become an invaluable resource for those looking to find, evaluate and finance real estate. Organizational success in resource dependency theory (RDT) is defined as organizations maximizing their power (Pfeffer ).

Research on the bases of power within organizations began as early as Weber () and included much of the early work conducted by social exchange theorists and political scientists. Resource Dependence Theory (RDT) definition Resource dependence theory (RDT) is concerned with how organisational behaviour is affected by external resources the organisation utilises, such as raw materials.

Resource dependence theory (RDT) is the study of how the external resources of organizations affect the behavior of the organization. The procurement of external resources is an important tenet of both the strategic and tactical management of .

Resource dependence
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