Resource dependence theory is a concept that explains how organizations rely on external resources to survive and thrive, emphasizing the importance of relationships and power dynamics in managing those resources. It suggests that companies must strategically manage their dependencies on external entities such as suppliers, customers, and other stakeholders to maintain stability and control. This theory also highlights the interplay between a firm's internal governance structures and its need for critical resources, connecting to both the motivations of leaders and the composition of boards.
congrats on reading the definition of Resource Dependence Theory. now let's actually learn it.