The strategic-contingencies theory implies that when an organization faces a number of lawsuits that threaten its existence,the legal department will have less power and influence over organizational decisions.

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The strategic-contingencies theory suggests that in situations of resource scarcity or uncertainty, the department or group that controls vital resources or information will have more power and influence over organizational decisions. In the case of lawsuits threatening an organization's existence, the legal department would likely have more power and influence in making decisions related to legal and risk management issues.

The Strategic-Contingencies Theory Implies That When an Organization Faces a Number