In resource dependence theory:
A) A small supplier should count on price competition for locking in accounts.
B) A small supplier should lock in a single large company for the bulk of its sales.
C) Organizations will do whatever is needed to avoid dependence on the environment for reducing uncertainty.
D) Organizations will set up dependencies when they become more self-reliant.

Question

Quizplus · Accepted Answer

Resource dependence theory asserts that organizations will do whatever is needed to reduce uncertainty caused by dependence on the environment. This means that they will strive to develop secondary sources for critical resources, reduce their reliance on external partners and suppliers, or even bring critical activities in-house to minimize external dependencies. Option A and B are incorrect as locking accounts and depending on a single large customer could result in greater risks and dependence, contrary to the resource dependence theory. Option D is also incorrect as the theory suggests that organizations avoid creating additional dependencies.

In Resource Dependence Theory