Resource-Dependence-Theory
Resource-Dependence-Theory is a framework in organizational theory that examines how external resources impact the behavior of organizations. This theory posits that organizations must manage their relationships with external entities to acquire resources necessary for their survival and growth.
History and Development
The theory was first introduced by Jeffrey Pfeffer and Gerald R. Salancik in their 1978 book titled "The External Control of Organizations: A Resource Dependence Perspective". Their work was influenced by earlier organizational theories but focused specifically on the dependency of organizations on resources from their environment, rather than just internal processes.
Core Concepts
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Dependency: Organizations depend on resources from the environment, which can include capital, labor, raw materials, and technology. The level of dependency is influenced by the importance of the resource, the scarcity of the resource, and the discretion of the resource supplier.
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Power and Control: Entities that control critical resources hold power over organizations. This power can be used to influence or control organizational behavior.
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Strategies for Managing Dependence:
- Merger and Acquisition: To gain control over resources.
- Co-optation: Inviting resource controllers into the organization.
- Interlocking Directorates: Establishing links through board members.
- Joint Ventures: Collaborating to share resources.
- Buffering: Stockpiling resources to reduce vulnerability.
- Bridging: Creating alliances or partnerships to secure resources.
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Environmental Uncertainty: Organizations operate in environments with varying degrees of uncertainty regarding the availability and control of resources, influencing their dependency strategies.
Context and Application
Resource-Dependence-Theory has been applied across various fields, including business strategy, public administration, and sociology, to understand how organizations navigate their external environments:
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In Business Strategy, it helps explain why companies enter into alliances, engage in mergers, or form strategic partnerships.
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In Public Administration, it's used to analyze how government agencies manage dependencies on legislative bodies for funding and policy support.
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In Nonprofit Organizations, it explains how these entities adapt to changes in donor bases or government funding.
The theory has also been critiqued and expanded over time. Critics argue that it might overlook internal capabilities or strategic choices that can mitigate external dependencies. However, its fundamental principles remain influential in organizational studies.
References
- Pfeffer, J., & Salancik, G. R. (1978). The External Control of Organizations: A Resource Dependence Perspective. Harper & Row.
- Salancik, G. R. (1979). The External Control of Organizations: A Resource Dependence Perspective. Administrative Science Quarterly, 24(2), 221-227.
- Hillman, A. J., Withers, M. C., & Collins, B. J. (2009). Resource dependence theory: A review. Journal of Management, 35(6), 1404-1427.
See Also