Resource dependency theory is the product of the study of how external resources. effects the working of the organizations. This theory helps in understanding the relationship between the organization and all the essentials they require to act accordingly (Albats, Alexander, Mahdad, Miller and Post, 2019). Essentials come in different formats like raw material, financing and employees. Getting these resources for strategic and tactical management is very important to the management teams of the organization.
There can be three aspects that can affect the level of dependence which the organizations have on external resources. First one is determining the resource dependence of the firm by considering the overall importance of the resource to the firm. Second factor which can arise is the shortage of the resources. Another factor that influences resource dependence is the rivalries among the organizations for getting control of a particular resource.
With the perspective of supply management, use of RDT shows significant impact. The empirical findings show that organizational interdependency is important and includes the variables like availability of supply, power and criticality of the resources. The fundamental postulation of RDT is to ensure survival of organization by reducing any situation of dependency and uncertainty and personifies an organization as an open system which is dependent on possibilities in the external surroundings.
Every business needs to procure resources for a sustained movement of the workflow. These resources are acquired depending upon the targets and planning of the organization to achieve them. Uneven distribution of these resources can generate distinction incompetency and further access to them (York and Miree, 2020.) That is why managers prefer using the Report dependency theory.