What is Resource Dependence theory?

[toshali-gupta]

It is concerned with how organisational behaviour is affected by external resources that the organisation utilises, such as raw materials. The theory is important because an organisation’s ability to gather, alter and exploit raw materials faster than competitors can be fundamental to its success.
e.g. Post recent crisis of power in Pakistan, some firms are creating their own power to avoid any shortage of power

[chirag-garg]

Dependency theory is the concept of “poor”, underpaid workers working to help provide resources for the rich and wealthy. Think of a society in which all of the low and middle class were the labourers, working much more than we do today, and we barely get a cut out of our work, because most of it is going to the rich people who sit around and party, not doing any manual labor.

Today’s underdeveloped areas are facing a similar issue to this, as this is one of the stages of society on its way to a “perfect” civilisation and hierarchy. Though it has no meaning in today’s world, some still argue it is the way to assume social and cultural dependency and civilize the world.