Resource Dependency in Supply Chains

This study explores the concept of resource dependency in supply chains, focusing on the case of Toyota. It discusses the benefits and challenges of resource dependency, and the importance of effective management in supply chain processes. The study also highlights the role of collaboration and trust in strengthening supply chain performance.

Resource Dependency in
Supply Chains
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Evaluation of resource dependency in supply chain....................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6
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INTRODUCTION
Resource dependency is a study which shows ways of how external resources of an
organization affect performance, growth as well as behaviour of the company. This study is
based on Toyota which is a Japanese multinational automotive manufacturer. Headquarter of this
company is in japan, It is important for this company to manage supply chain in order to
accomplish goals.
In the context of supply chain it can be said that, resource dependency shows a degree to which
an organization in a supply chain needs to maintain resources exchange (Biermann and Harsch,
2017). So, it can be said that resource dependency is somehow beneficial and can help
companies in completing the process of supply chain or ordering raw materials to deliver
finished goods. On the other it can also be said that sometimes this dependency have negative
impacts as due to lack of resources can decrease effectiveness of supply chain management
process.
MAIN BODY
Evaluation of resource dependency in supply chain
The main concept of resource dependency technology or theory is increase effectiveness
of companies internal performance as well as increase determination of the strategic importance
of resources. Interdependency is beneficial for some type of situations in which an organization
is in a strong and powerful position and rather using alternative strategy, they focus on strategic
partnership via which suppliers are motivated to increase the powerful position of the company
as well as increasing their own skills in order to place that skills in partnership and help
companies in accomplishing their goals (Sherer, Suddaby and Rozsa de Coquet, 2019).
Resource dependency in Toyota in supply chain and theory is variation in uncertainty
which are deriving from organizational environment has responsibility for internal power
distribution between organizational entities as well as external power distribution between
market participants. Toyota is made up of both internal and external environment which has
several factors. All these factors affect company's performance in a critic manner. One of the
main function which needs to be performed by this company is supply chain. So, reducing
negative impacts and being in a strong position in the market, companies focus on managing
resource dependencies by setting different forms of inter organizational arrangements (Cao, Li
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and Wang, 2017). It is also stated that this dependency and relationship between resources and
supply chain is dynamic ad changes through the life cycle of a project.
There are several benefits and importance of managing supply chain by Toyota such as it
helps it in making its products innovative, faster products' development, increase manufacturing
flexibility and provide opportunity of global competition. For completing the process of supply
chain or delivering products of an organization to customers in an efficient manner it is
important for Toyota to have an effective dependency and use all of its resources like human
resource, production department, budget, technical resources in the process of supply chain.
Logistic and supply chain, business process and supply chain, operation management all are
required to have effective resources by which dependency can be made effective. On the other
hand, it is stated that it does not only have positive impacts but it can have some negative
impacts on the performance of an organization (Reimann and Ketchen Jr, 2017). This
dependency of an organization on external environment and supply chain process on resource
can sometimes delay in the process of supply chain, If an organization does not have enough
resources and process of supply chain is dependent upon all those resources than it may decrease
effectiveness.
In the context of electric vehicle industry, it can be said that organizations in this sector
are highly dependent on their environment in order to get some critical resources which include:
raw materials, technology, labours etc. This dependency in supply chain can be determined by
main 3 factors such as: the ease of suppliers substitutability, importance of resources and the
ability of organizations to use and access them. So, it is important for companies to reduce risky
dependencies either bridging strategies or buffering. Effective dependencies and collaboration
can lead to access unique resources as well as minimize environmental uncertainties (Huo, Flynn
and Zhao, 2017). Electric vehicle industry's supply chain was analysed in the respect of resources
dependencies with its all suppliers. By making an effective use of Buffering and bridging
companies of this sector can accomplish its goals and reduce risky dependency and increase
effective dependency. So, it can be said that Toyota is highly dependent on the environment for
supply chain of natural resources but all these resources are becoming costly and scarce.
Resource dependency has both positive and negative impacts. Main positive impact is it can help
companies in accomplishing goals by collaboration. Negative impact is lack of one variable and
resources can delay in the process of supply chain.
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CONCLUSION
From the above study it has been summarized that supply chain played an important role
as it helps companies in accomplishing their goals. It has also shown critical impacts of
dependency and relationship between supply chain and resources like HR, technical staff and
other external environmental resources. It has both positive and negative impacts which helps
companies in taking decision and accomplish its goals. One of the main element and factor
which is important to make this relation and dependency successful is trust and collaboration. It
is the best way and solution to strengthen supply chain process which plays an important role.
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REFERENCES
Books and journals
Biermann, R. and Harsch, M., 2017. Resource dependence theory. In Palgrave handbook of
inter-organizational relations in world politics (pp. 135-155). Palgrave Macmillan,
London.
Cao, D., Li, H. and Wang, G., 2017. Impacts of building information modeling (BIM)
implementation on design and construction performance: a resource dependence theory
perspective. Frontiers of Engineering Management. 4(1). pp.20-34.
Chen, S., 2018. Multinational corporate power, influence and responsibility in global supply
chains. Journal of Business Ethics. 148(2). pp.365-374.
Huo, B., Flynn, B.B. and Zhao, X., 2017. Supply chain power configurations and their
relationship with performance. Journal of Supply Chain Management. 53(2). pp.88-111.
Reimann, F. and Ketchen Jr, D.J., 2017. Power in supply chain management. Journal of Supply
Chain Management. 53(2). pp.3-9.
Sherer, P.D., Suddaby, R. and Rozsa de Coquet, M., 2019. Does Resource Diversity Confer
Organizational Autonomy In Arts Organizations? Extending Resource Dependence
Theory. The Journal of Arts Management, Law, and Society. 49(4). pp.224-241.
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