Topic > Essay on Environment and Environment - 1123

Provan, Beyer and Kruytbosch (1980) argued that organizational control can be considered as a reciprocal relationship between organizations and the environment. It has been suggested that organizational power increases with a decrease in dependence on resource providers ( Provan et al., 1980 ). Furthermore, it has been argued that power, as well as the obtaining of resources, are determined not only by dependencies between organizations, but also by the organization's relationships with the broader environment in which they exist ( Provan et al., 1980 ). The exchange of resources with the environment creates power-dependent relationships between organizations (Scott & Davis, 2007). Because obtaining resources is essential for an organization's survival and prosperity, the availability of resources determines the organization's position within the environment as well as its power over other organizations (Provan et al., 1980) . Therefore, resource dependence theory is based on the assumption that organizations are highly dependent on other organizations that provide essential resources and, more importantly, this dependence is often mutual (Drees & Heugens, 2013). The theory also explains organizations' involvement in various interorganizational arrangements, such as interlocking directorates, alliances, and joint ventures (Drees et al., 2013). By engaging in interorganizational agreements, organizations strengthen their autonomy and authority relative to other organizations (Drees et al., 2013). Since autonomy and power within the environment have a great impact on organizational performance, there is no denying that resource-dependent relationships are one of the world's major concerns.