A RESOURCE DEPENDENCY STUDY

Organisations create competitive advantage by value

addition model; they draw inputs, add value &
deliver output. The input, output & resources to add
value eg. machinery, workers, and even funding, all
flow to & from other organisations. As John Donne
said, 'No man is an island', and the same is very true
for every organisation.

The survival of an organisation is thus dependent on

another organization. The chart reflects the factors
affecting company’s reliance on another
organisation.

Resource dependency theory examines the relationship between organizations and the resources they need
to operate. It is the study of how the external resources of organization affect the behaviour of the
organization. The theory conceptualises that the goal of an organization is to minimize its dependence on
other organizations and to find ways of influencing these organizations to make the resources available.

This can be understood with the concept of dependency explained above; if one company maintains the
majority of a resource, then another company will become dependent on it in order to operate. This too much
dependency will create external locus of control & thus uncertainty, which shall subject organization’s
sustenance to risk.

Depending on the nature of resources two

types of inter-dependencies can be created
within an organisation – Symbiotic (with
suppliers) & Competitive (with competitors).

Based on the type & quantum of inter-

dependency, the company develops its
policies to manage and control its access to
critical & scarce resources. The policies vary
from informal influence based on
reputation, to formal influence with
horizontal/vertical mergers.

In this project, we tend to explain the theory

in terms of relationship of DELL TECHNOLOGIES with its storage company EMC CORPORATION. The
relationship of EMC corporation with Dell started as that of a symbiotic interdependency wherein EMC
supplied the services of storage space for hardware of Dell. However, to better manage its dependency, DELL
technology started its own storage unit to meet its storage requirements, creating a competitive
interdependency between the companies. The strategy of the company, and flow of relationship, leading to
the final act of acquisition of EMC by DELL is detailed hereunder.