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 suggests that organizations will try to reduce their external dependencies to minimize uncertainty. This means they will try to secure control over resources they need, rather than relying on external sources. Option A is incorrect because relying on price competition is not a sustainable way to lock in accounts; eventually, price cuts will erode profit margins. Option B is incorrect because if a small supplier relies too heavily on a single large customer, they become vulnerable to the customer's demands and risks losing their business if they can no longer meet those demands. Option D is incorrect because setting up dependencies would increase an organization's reliance on external sources rather than reducing it.

In Resource Dependence Theory