In resource-dependence theory, large, independent companies have power over small suppliers.

Question

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Resource-dependence theory posits that organizations are dependent on certain resources, such as supplies or materials, in order to achieve their goals. Large companies can use their purchasing power to influence or even control smaller suppliers, creating a power imbalance in the relationship. Therefore, large, independent companies are often more powerful than small suppliers in this theory.

In Resource-Dependence Theory, Large, Independent Companies Have Power Over Small