90.2K

Verified Solution

Link Copied!

can you paraphrase this in a short paragraph ?

2.2 Resource dependence theory and buyer-supplier relationships The RDT states that organisations are open systems, dependent on their environment "to obtain critical resources such as personnel, information, raw materials and technology (Hirschheim et al., 2009, p. 176). According to the RDT, companies that have access to scarce resources are able to influence other companies through their relationship with them (Casciaro and Piskorski, 2005). Pfeffer and Salancik (2003) state that resource dependency levels are determined by three key factors: the importance of the resource; the ease of supplier substitutability (i.e. availability of alternative suppliers and the associated switching costs); and the amount of "discretion" (i.e. the ownership or ability to access and use) exerted (legislatively, geographically or politically) over the resource. Therefore, in respect to the RDT, managers must strategise to minimise and overcome risky resource dependencies through either buffering" and/or "bridging" strategies (Pfeffer and Salancik, 2003). Mindful of this, on the one hand, "buffering" strategies are used to minimise resource dependencies on other firms by building up "stocks" and reducing the uncertainty in obtaining important resources (Leonardi, 2013). On the other hand, "bridging Strategies can be used to strengthen how between the source and sink of assets, and thus reduce the chance of crucial natural resource shortages by strengthening links through stronger strategie, operational and technical bridges between one in and another (Econardi. 2013Such bridges can be thourlit of as "boundary spanning objects or activities, namely physical resources people kills and knowledge and process evitando 2009 Salle De

Answer & Explanation Solved by verified expert

See Answer