Resource Dependence Theory

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Resource Dependence Theory (RDT) in reality:
The main objective of Resource Dependence Theory is to reduce the dependence on other organizations and having vital resources to reduce the control of other organizations on them. However, in reality Resource Dependence Theory is not fully accomplished in organizations due to the insufficiency of resources and some other obstacles. We tried to relate Resource Dependence Theory with IKEA, world’s largest furniture retailer. IKEA

IKEA
Resource Dependence Theory (RDT)
Resource Dependence Theory (RDT)

The way it works
The way it works

Resource Dependence Theory (RDT) and IKEA:
I. Resources are supposed to originate from its organization’s environment so that it does not have to depend on others. IKEA gets 9% of the raw materials from Sweden so that they can depend less on others. II. According to the recent information, IKEA has approximately 1600 suppliers from 55 Countries all around the Globe. It shows that IKEA is depending on the suppliers for their raw materials. The main raw materials for IKEA- wood, cotton, iron, plastic and paper. However, IKEA has to depend on others because of having insufficiency of resources in its homeland, Sweden. III. To a considerable extent, IKEA has to deal with other organizations. IKEA is Getting raw materials from- Europe-67%, Asia and Australia-30%, North America-3%.

The Countries are- Australia, Austria, Belgium, Canada, China, Czech republic, Denmark, Finland, France, Germany, Hungary, Italy, Japan, Netherlands, Norway, Poland, Portugal, Russia, Slovakia, Spain, Sweden, Switzerland, United kingdom and USA. IV. One organization’s needs are in the hand of other organizations and vice-versa. The needs of IKEA and the Suppliers are interrelated. IKEA deals with all the suppliers for a certain period so the suppliers are assured to provide the raw materials in time. If IKEA gets all the raw materials from an organization, then it does not have to depend on...
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