resourcedependency

Resource dependency refers to the organizational theory that a firm's behavior is shaped by external resources essential for its survival. The theory posits that organizations rely on inputs such as capital, information, human skills, technology, and legitimacy, which are controlled by other actors outside the organization. Because these resources are often scarce or controlled by powerful others, the firm faces constraints and uncertainties that influence its strategic choices and structure. Dependency strength varies with resource criticality, scarcity, and the extent of control by others.

Developed by Jeffrey Pfeffer and Gerald R. Salancik in the late 1970s, notably in The External Control of Organizations (1978), resource dependency theory emphasizes how external power shapes organizational behavior. The central premise is that organizations are open systems that must engage with a resource environment and that power derives from resource control rather than intrinsic efficiency alone. Organizations mitigate dependency through strategic actions designed to alter the terms of exchange or reduce reliance on others.

Common strategies include diversifying suppliers, forming strategic alliances or joint ventures, mergers and acquisitions, interorganizational networks, and political activity such as lobbying or corporate philanthropy to improve legitimacy. Structural choices—such as creating boundary-spanning roles, centralizing or decentralizing authority, and resource buffering (stockpiles or contract terms)—are used to manage dependency. The theory also highlights the role of power asymmetries, information asymmetry, and uncertainty in shaping negotiations and governance arrangements.

Critics argue that resource dependency can overstate external control and underplay internal capabilities and initiative. Contemporary applications extend to corporate governance, nonprofits, public administration, and international relations, where actors seek to stabilize resource flows, influence policy, or reduce exposure to external shocks. The concept remains foundational for understanding strategic behavior in environments with uneven access to critical resources.