Resource Dependency in Supply Chains

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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