Resource Dependence Theory (RDT) is the study of how the external resources of organizations affects the behavior of the organization. The procurement of external resources is an important tenet of both the strategic and tactical management of any company. Nevertheless, a theory of the consequences of this importance was not formalized until the 1970s, with the publication of The External Control of Organizations: A Resource Dependence Perspective (Pfeffer and Salancik 1978). Resource Dependence Theory has implications regarding the optimal divisional structure of organizations, recruitment of board members and employees, production strategies, contract structure, external organizational links, and many other aspects of organizational strategy.

The basic argument of Resource Dependence Theory can be summarized as follows:

• Organizations are dependent on resources
• These resources ultimately originate from the environment of organizations
• The environment to a considerable extent contains other organizations
• The resources one organization needs are thus often in the hand of other organizations
• Resources are a basis of power
• Legally independent organizations can therefore be dependent on each other
• Power and resource dependence are directly linked:

Organization A's power over organization B is equal to organization B's dependence on organization A's resources.

• Power is thus relational, situational and potentially mutual

Resource Dependence Theory is one of many theories of organizational studies

Organizational studies

Organizational studies, sometimes known as organizational science, encompass the systematic study and careful application of knowledge about how people act within organizations...

 regarding the behavior of organizations. In many ways, the predictions of Resource Dependence Theory are similar to those of transaction cost economics, but it also shares some aspects with institutional theory

Institutional theory

Institutional theory is "A widely accepted theoretical posture that emphasizes rational myths, isomorphism, and legitimacy."FThere are two dominant trends in institutional theory:* Old Institutionalism sometimes associated with Historical institutionalism...

.