Resource Dependence Theory Resource Dependence Theory

Resource Dependence Theory

1. Resource Dependence Theory Rafael Biermann and Michael Harsch

2. Resource Dependence in International and Transnational Organizations International and transnational organizations need external resources for goals, autonomy, and survival. These resources come from partnerships with public and private bodies. Examples: WHO with Médecins Sans Frontières UNHCR with refugee partners 1,200 groups in the Mine Ban Treaty. “Resource dependence is vital but reduces autonomy” .

3. The Strategic Dilemma of Dependence and Autonomy: Insights from RDT Resource Dependence Theory (RDT) addresses the strategic dilemma of gaining resources while maintaining autonomy. RDT became a key approach since the 1960s. Theory development slowed between the mid- 1980s and early 2000s but later revived. The revival links to the organizational turn in International Relations (IR), merging organizational sociology and IR theory. “RDT is effective for explaining relations among international and transnational organizations”.

4. How RDT Explains Relations among International Organizations Part Focus Area Key Points / Coverage 1 Origins and Evolution of RDT Introduces RDT’s core assumptions . Highlights the shortcomings and limitations of the approach. 2 RDT in Global Inter-Organizational Relations Discusses RDT’s explanatory power in global affairs. Examines the transferability of RDT to international organizations. Introduces key works applying RDT to inter-organizational relations. 3 Future Research Directions Provides recommendations for future studies on RDT and international organizations.

5. RESOURCE DEPENDENCE WITHIN ORGANIZATION THEORY

6. A Brief History of Resource Dependence Theory (RDT)

7. Intellectual Foundations Social Exchange Theory: Focused on reciprocity and dependence in relationships (Emerson, Blau , Levine & White). Management Literature: Emphasized environmental uncertainty and interdependence (Selznick, Thompson). RDT as Integration: Pfeffer & Salancik merged these views, framing organizations as controlled by external resource environments.

8. Determinants of Dependence (RDT) Core idea: Dependence on external resources limits organizational autonomy. Power relationship: Power of A over B = Dependence of B on A (Emerson, 1962 ). Two key determinants of dependence level: Essentiality of Resources Availability of Alternative Suppliers How crucial a resource is for organizational functioning Fewer suppliers increase dependence; monopolized resources heighten vulnerability.

9. Determinants of Dependence Balance of Dependence : When both partners offer valuable resources, reciprocity and mutual autonomy increase. Network Influence : Dependence also shaped by network concentration and centrality . Fewer players → more formal, hierarchical relations. More connected organizations → less dependent on single partners. Dependence and power are subjective — organizations interpret what’s “essential” or “valuable” differently over time.

10. Key Strategies for Managing Dependence Control the Source of Dependence Growth through mergers, acquisitions, or diversification to reduce external reliance. Stabilize Transactions via Coordination Build joint ventures, alliances, board interlocks, or formal agreements to ensure stable resource exchange. Alter the Social Environment Use lobbying, PR, and regulation influence to shape favorable external conditions. Manage or Avoid External Demands Limit information disclosure or exploit ambiguity to avoid excessive control by others. In-source or Outsource Strategically Develop internal capabilities or delegate tasks externally to balance autonomy and efficiency.

11. Shortcomings of Resource Dependence Theory (RDT) 1. Confusion between concepts: RDT mixed up the level and balance of dependence. 2 . Too focused on rational, material aspects: RDT assumes organizations act logically to get resources and control their environment. It ignores social values, norms, and larger structures (like networks or society). 3 . Limited focus on power relations: RDT mainly sees cooperation, not conflict or power struggles between organizations. It misses hidden or indirect forms of power that affect organizations .

12. RESOURCE DEPENDENCE AMONG INTERNATIONAL ORGANIZATIONS

13. International governmental organizations (IGOs) United Nations (UN) – promotes international peace, security, and development. World Bank – provides financial aid and loans to developing countries. International Monetary Fund (IMF) – stabilizes global financial systems and supports countries in economic crises. World Trade Organization (WTO) – sets and enforces rules of international trade.

14. Resource Dependence among International Organizations RDT can help study relationships among international organizations (IGOs). Organizational science rarely studied IGOs, while International Relations (IR) focused more on their functions than their interrelations. In the 1970s, both RDT and IR scholars had similar ideas about interdependence but did not connect their work. Now, new researchers are combining RDT and IR theories to build a stronger understanding of cooperation among international organizations.

15. Transferability of RDT to IGOs IGOs rely on external resources — RDT explains how they manage these dependencies. Like firms, they seek autonomy and control while ensuring resource access. Member states shape IGO actions; they are not fully independent actors. IGOs aim to serve global interests , not profit — avoiding mergers or cartels. When resources are limited, they cooperate more , even at the cost of autonomy. RDT helps understand how IGOs balance dependence and independence in global cooperation.

16. RDT and IGOs: An Emerging Research Program Few IR scholars have applied RDT deeply to IGOs, though many studies show resource dependence affects IGO cooperation. Main idea: IGOs face a trade-off between gaining external resources and maintaining autonomy (e.g., Interpol, UN, WHO). Strategies used by IGOs: Build alternative resource sources Form partnerships for stability Diversify activities and strengthen internal capacity

17. Key Studies and Insights Barnett & Coleman (2005): IGOs respond to pressure through compromise, avoidance, or defiance. Lipson (2011) Reduce dependence via partnerships and internal development. Brosig (2011, 2015): Different IGO cultures value resources differently Gest & Grigorescu (2010) IGOs prefer pooling similar resources to preserve autonomy. Liese (2009–2010) & Schäferhoff (2009) RDT works well but should be combined with organizational culture and leadership views.

18. Future Directions of Research in RDT and IGOs IGO Strategies for Managing Dependence Business studies use strategies like diversification, substitution, mergers, joint ventures to manage dependence. IR research mainly looks at patterns of dependence and motives for cooperation . Future work should explore: Whether business-style strategies apply to IGOs. How both powerful and weaker IGOs handle dependence. How multiple strategies interact dynamically in real contexts.

19. Future Directions of Research in RDT and IGOs Complementing RDT with Other Theories RDT alone cannot explain all inter-organizational behavior. It should be combined with other approaches like: Institutional theory Network theory Transaction cost theory Population ecology Leadership and organizational culture theories These can give a richer and more nuanced understanding of IGO cooperation.

20. Future Directions of Research in RDT and IGOs IGO Cooperation Across Different Issue Areas IGOs depend on external resources in varied policy fields like: Environment Health Economic development Research should test whether dependence patterns differ across fields. Pfeffer & Salancik (2003) suggested that moderately sized fields foster cooperation better than highly complex ones. Future studies should see if cooperation can become a lasting habit in creating global public goods.

21. Future Directions of Research in RDT and IGOs Resource Dependence in Organizational Networks IGOs now operate in dense global networks with NGOs, firms, and other IGOs. Key questions for research: Does a large number of partners make cooperation easier or harder? Do networks reduce autonomy concerns or encourage frequent partner changes to avoid dependence? RDT can help explain how network structures influence dependence .

22. Future Directions of Research in RDT and IGOs Applying RDT to NGOs NGOs face strong dependence on donors (public/private) . They also work in transnational advocacy networks that share resources to push for change. Future research should examine how resource dependence shapes NGO behavior , just as in IGOs. Comparative studies between non-profits and for-profits can reveal new insights.

23. RDT research is bridging the gap between organizational science and international organization studies through interdisciplinary collaboration.