What are the two main strategies in resource dependence?

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.

What is an example of resource dependence theory?

The organic grocery store decides to sell the bell peppers even though they are more expensive then organic bell peppers other farms because they need to sell tomatoes in their store. The concept comes from Resource Dependency Theory (Pfeffer and Salancik, 2003) which was developed in the 1970s.

What is the difference between resources based view theory and resource dependence theory?

Abstract: The Resource-Based View (RBV) acknowledges that firms’ resources contribute a lot to achieve competitive advantage. Based on Resource Dependence Theory (RDT), firms have to develop and maintain the relationships with their customers, suppliers and other relevant organisations to achieve important resources.

Who came up with resource dependence theory?

The theory originated in the 1970s with the publication of The External Control of Organizations: A Resource Dependence Perspective by Jeffrey Pfeffer and Gerald R. Salancik. RDT is underpinned by the idea that resources are key to organisational success and that access and control over resources is a basis of power.

What is the definition of resource dependence theory?

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.

What is the study of resource dependence ( RDT )?

Resource Dependence Theory (RDT) came out of a study into how organisations’ external resources affect the behaviour of those organisations. In other words, the theory examines the relationship between organisations and the products they need to operate. Resources come in many forms, such as raw materials, financing, and employees.

Are there any criticisms of the dependency theory?

All these points of criticism of the dependency theory must not make us overlook its importance.

Which is the best argument for resource dependence?

The basic argument of resource dependence theory can be summarized as follows: Organizations depend on resources. These resources ultimately originate from an organization’s environment. The environment, to a considerable extent, contains other organizations. The resources one organization needs are thus often in the hand of other organizations.