Organization Behavior - Importance of Resource Dependency

Running head: ORGANIZATION BEHAVIOR
Organization Behavior
Name of the Student
Name of the University
Author note

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ORGANIZATION BEHAVIOR
Essay Topic- Importance of Resource Dependency Theory to Managers for Developing
Framework of Understanding Company and Cooperative and Competitive Interactions
with other Companies
Introduction
The respective essay throws light in analyzing the importance and effective of Resource
Dependency Theory for the managers in understanding the organization. It will be providing a
brief outlook on the cooperative along with competitive interactions with the different
organizations. As commented by Bergmann, Stechemesser and Guenther (2016), the resource
dependency theory is mainly apprehensive for organizational behavior is affected by the various
kinds of external type of resources which are utilized by the company such as usage of the raw
materials.
Through the introduction of the respective theory, it will be beneficial for different
managers or the higher officials as it will be helpful for them in analyzing the ability of the
organization for assembling, altering along with exploiting various resources fast in comparison
to competitors which are operating in the competitive business scenario. It is considered to be the
fundamental aspect for success and it will be helpful for achieving competitiveness. In the essay,
the main aim and purpose is to understand the concept of Resource Dependency Theory,
Importance and Significance of the theory to the managers in the company and its impact in the
entire competitive business environment.
Discussion
As commented by Biermann and Harsch (2017), the respective RDT helps in examining
the relationship between the companies along with the different resources which are required by

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ORGANIZATION BEHAVIOR
them for operating and succeeding in market that is highly competitive. Moreover, as opined by
Cao, Li and Wang (2017), the Resource Dependency Theory is concerned with impact of low
organizational behavior is affected by the external kind of resources like raw materials. As
described by Coupet and McWilliams (2017), the respective theory is highly important as it will
be improving the performance and ability of the different companies in gathering, altering along
with exploiting the different resources in comparison to other competitor companies and generate
high level of success.
As commented by Cuervo‐Cazurra, Mudambi and Pedersen (2019), the resource are the
key elements which helps in managing the success of the company and that the access along with
control over the different resources is considered as the basis of power. RDT is mainly based on
the idea which helps in understanding that the earth has limited resources present and the
different companies are highly dependent on the resources for the overall survival of their
course. As opined by Fang (2018), the lack of control over the different resources can be creating
the different level of uncertainties for the different firms in operating in the respective
environment. In such scenarios, the managers of the companies need to have some alternative
strategies and plans for using the resources properly that are also required by the different firms
as to make sure their own survival.
As opined by Gelderman, Semeijn and Nagel (2017), external usage of the resources may
be reducing the managerial judgment, interfere with achievement of the different organizational
related goals which will be threatening the existence of the focal company. In such scenarios, as
described by Ma, Wang and Li (2019), the resource dependency theory suggests that the strategic
decisions along with opinions of the firms mainly depends on the environment in which it is
operating as the firms are mainly dependent on the environment for the different resources such

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as raw materials. In such instance, the companies need to analyze certain strategies which will be
allowing them in acquiring the resources in a suitable manner.
For instance- The organic kind of grocery store can be purchasing the organic tomatoes
from one particular local farm. In such scenario, the farm has the knowledge that it is the main
and local source for providing the organic tomatoes. Therefore, it pressurizes organic grocery
store to sell the bell peppers. The store decides to sell the bell peppers even though they are
expensive as they need to sell the tomatoes in their store.
There is a vast literature on the Resource Dependency Theory, however, after analyzing
the entire literature, it has been seen that there are three major factors which helps the managers
in influencing the company and be competitive in comparison to the other competitors which are
present in the market in different sectors. As commented by Pedersen (2019), in order to achieve
and maintain the competitive advantage against the other competitors present in the market,
choosing the right and appropriate kind of strategy is the prime element which will be suitable
for proactively influence as well as control environment to the advantage in the strategic kind of
decision-making. Moreover, as opined by Rahayu, Djamhuri and Rosidi (2019), the companies
need to typically build proper redundancy into the resource acquisition for reducing the reliance
on the single source and they need to have the different alternatives which will be effective for
the management of the growth prospects of the company in a positive and suitable manner.
As commented by Roundy and Bayer (2019), when the companies are internally focused,
they will be having the capability in coping up with the environmental uncertainties along with
dependencies which will be helping them in generating positive outcomes. As suggested by (),