Resource Dependency Theory

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RESOURCE DEPENDENCE AS A WAY TO OVERCOME ENVIRONMETAL UNCERTAINTY Organizations are not fully self-sufficient, some resources should be obtained from the environment therefore, organizations should have a relationship with the environment but, environment may not be relied on definitely at all times. Environmental changes can cause problems to the organizations (Üstdiken, 2015). The environment is the source of scarce and valued resources essential to organizational survival. Research in this area is called resource-dependence perspective (Daft vd., 2007). Resource dependency theory has two main pillars, First one is the significant role of environmental pressure on the organizations and other is power which holds an important position…show more content…
When organizations become aware of resource dependence and begin to develop strategies to reduce their dependence on the environment, the alternatives that would be considered are establishing interorganizational linkages or controlling environmental domain. When a significant change occurs in the stable environment which requires a response from the organizations in order to overcome possible threats arising from that change, companies respond by changing their structure to a more complex state, changing their marketing strategy or adopt new approach in order to keep its customers or suppliers. The main reason behind that is the design of the organization primarily focus on the ways of obtaining resources. Resources are the most critical aspect to be considered when designing the organization. To obtain the resources organizations should be autonomous and reduce their dependence as much as possible. If the external environment is stable, the organization may continue with the same design and structure, but if there is instability, the structure is needed to be…show more content…
Research in this area is called the resource dependence perspective. Resource dependence means that organizations depend on the environment but strive to acquire control over resources to minimize their dependence. Organizations are vulnerable if vital resources are controlled by other organizations, so they try to be as independent as possible. Organizations do not want to become too vulnerable to other organizations because of negative effects on performance. Although companies like to minimize their dependence, when costs and risks are high they also team up to share scarce resources and be more competitive on a global basis. Formal relationships with other organizations present a dilemma to managers. Organizations seek to reduce vulnerability with respect to resources by developing links with other organizations, but they also like to maximize their own autonomy and independence. Organizational linkages require coordination and they reduce the freedom of each organization to make decisions without concern for the needs and goals of other
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