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Resource Dependence Theory

💼 Business By CampusDown Wiki Editorial Team Last updated
Quick answer: resource dependence theory holds that organisations rely on their environment for critical resources and act strategically to reduce the power others gain over them and the uncertainty this creates.
Contents
  1. 1. Core argument
  2. 2. Determinants of dependence
  3. 3. Responses
  4. 4. Standing and critiques
  5. 5. References

Core argument

In The External Control of Organizations (1978) Jeffrey Pfeffer and Gerald Salancik argued that no organisation can generate all the resources it needs. Actors who control those resources gain power over it, and much organisational behaviour reflects their demands. Managers in turn act on the environment to reduce or manage dependence.

Determinants of dependence

  • Importance: how critical the resource is to operation and survival
  • Discretion: how far others control its allocation
  • Alternatives: how concentrated or substitutable the sources are

Responses

  • Mergers and vertical integration: absorb the source of dependence.
  • Joint ventures and alliances: share resources partially.
  • Board interlocks and co-optation: bring key outsiders onto the board.
  • Political action: lobbying and campaign funding to shape regulation.
  • Diversification: spread dependence across suppliers and customers.

Standing and critiques

Alongside institutional theory, population ecology and transaction cost economics, it is a leading theory of organisation-environment relations and is widely used to study funding dependence in public and nonprofit bodies. Critics note its broad concepts are hard to test and it downplays efficiency; later work refined it by distinguishing mutual dependence from power imbalance.

References

  1. Pfeffer, J., & Salancik, G. R. (1978). The External Control of Organizations: A Resource Dependence Perspective. Harper & Row.
  2. Hillman, A. J., Withers, M. C., & Collins, B. J. (2009). Resource dependence theory: A review. Journal of Management, 35(6), 1404-1427.
  3. Casciaro, T., & Piskorski, M. J. (2005). Power imbalance, mutual dependence, and constraint absorption. Administrative Science Quarterly, 50(2), 167-199.

Reports and materials that use this theory (Korean)

There are no materials dedicated to this theory yet, but you can search related reports in the CampusDown library (Korean).

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This article was last updated on October 15, 2026. It is based on widely recognized original works and textbooks; when citing it in a paper, please check the original sources listed in the references.