Question

question 6
12 pts

in resource dependence theory:

• a small supplier should count on price competition for locking in accounts.
• a small supplier should lock in a single large company for the bulk of its sales.
• organizations will do whatever is needed to avoid dependence on the environment for reducing uncertainty.
• organizations will set up dependencies when they become more self-reliant.

Explanation:

Define Resource Dependence Theory

Resource dependence theory (RDT) studies how the external resources of organizations affect the behavior of the organization. The core argument is that organizations are not self-sufficient; they must acquire resources from their environment. This acquisition of resources creates dependencies on other organizations, which introduces environmental uncertainty and vulnerability.

Analyze organizational goals under RDT

Under Resource Control, organizations strive to minimize their dependence on other actors in their environment to maintain autonomy and reduce uncertainty. To achieve this, organizations will actively manage their relationships, form alliances, merge, or diversify to avoid being controlled by external resource providers.

Evaluate the given options

• Option 1: "A small supplier should count on price competition for locking in accounts." This is a tactical pricing strategy, not a core tenet of resource dependence theory.
• Option 2: "A small supplier should lock in a single large company for the bulk of its sales." This contradicts the theory, as relying on a single large buyer dramatically increases vulnerability and dependence, which organizations try to avoid.
• Option 3: "Organizations will do whatever is needed to avoid dependence on the environment for reducing uncertainty." This aligns perfectly with the core premise of RDT, where organizations actively seek to reduce external dependencies to manage environmental uncertainty.
• Option 4: "Organizations will set up dependencies when they become more self-reliant." This is illogical; self-reliant organizations seek to minimize dependencies, not create them.

Answer:

• (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. (Correct answer)
• (D) Organizations will set up dependencies when they become more self-reliant.