Resource Dependency Theory In Supply Chain 2.

Resource Dependency In Supply Chain 1
RESOURCE DEPENDENCY IN SUPPLY CHAIN
By (Name)
Course
Professor’s Name
Institution
Date

Resource Dependency In Supply Chain 2
Table of Contents
Introduction..........................................................................................................................3
Resource Dependency theory..............................................................................................3
The lack of resources and their Implications.......................................................................3
What supply chains need.....................................................................................................4
Resources that supply chains use.........................................................................................4
Energy and technology in supply chains.............................................................................4
The phases of a supply chain, the resources required ad the results of lacking these
resources..........................................................................................................................................5
Stage 1: Plan....................................................................................................................5
Stage 2: Sourcing.............................................................................................................5
Stage 3: Make..................................................................................................................6
Stage 4: Delivery..............................................................................................................6
Stage 5: Return.................................................................................................................6
Conclusion...........................................................................................................................6
References............................................................................................................................7

Resource Dependency In Supply Chain 3
Resource Dependency In Supply Chain
Introduction
Resource dependency in supply chains is the concept relating the lack of resources with
the situation in which organizations depend on other organizations to obtain scarce resources.
This report will refer to the example of Toyota Motor Corporation and Morgan Motor Company
to explain the theory.
Resource Dependency theory
The resource dependency theory dictates that business entities must transact and engage
with other objects within their environment to acquire the resources they need (Archibald, 2017).
Organizations hold resources of different values; therefore, the transactions done with unequally
valued resources result in the creation of differences in power. The resource dependence theory
claims that all organizations are working to reduce to a minimum their dependence on other
organizations for resources (MeanThat, 2015). This theory dictates the acquisition of inputs and
equips the entire manufacturing process. Since Morgan Motors depends on BMW to supply them
with engines for their vehicles, Morgan can only produce as many cars as the number of engines
supplied.
The lack of resources and their Implications
Ultimately the acquisition of resources is challenging for many organizations given the
combination of scarcity and the fact that the resources may be under the control of uncooperative
parties. Morgan motors in the UK depends on BMW in German for engines, if BMW decides not
to supply, then Morgan Motors will close down (Walker, 2019).