Resource Dependency Theory

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Resources refers to tangible and intangible assets organizations use to develop and implement their strategies. An organization’s resources can include many aspects of the organization for example, physical, financial assets, individual, IT, partnerships, relationships and organizational capital (Lewis & Kipley, 2012, para 2). An organization’s critical resources refer to those assets within the sphere of organization’s critical information and infrastructure (Maloor, 2012). To assess the capabilities of an organization, it is important to understand the factors that contribute to the organization’s ability to meet and accomplish its MVGO’s. Deficiencies in critical resources can greatly influence the organization’s ability to accomplish …show more content…
This model provides fundamental principles in developing effective strategies and organizational goals. The resource-based approach for the VA is a strategy that improves the efficiency and overall operation of the organization. Mismanagement of resources can have a negative impact on performance and reduce the efficiency of the organization. The resource dependency theory refers to a principle that an organization must engage in transactions with other organizations in order to acquire the necessary resources (Shook, Adams, Ketchen, & Craighead, 2009). The resource dependency theory requires the adaptation of organizational elements to align with external ones. This theory relates to the VA in the sense of having to rely on external care facilities and private sector operatives to aid in caring for veterans. As it currently stands, the VA alone is not capable of providing quality care to the 18.8 million veterans and family members that requires health care on a daily basis. Instead, they rely on external organizations to aid in bridging the gap for services that they cannot provide. The resource dependency theory requires the bridging and coordination of two operational strategies. Additionally, bridging gaps reduces competition uncertainties that organizations may experience (Shook, Adams, Ketchen, & …show more content…
The VRIN framework characterizes resources into four resources; they are valuable, rare, inimitable, and nonsubstituable. Valuable resources refer to the assets that bring value to the organization and can be a source of competitive advantage. Rare resources refer to the assets that are in high demand and the demand exceeds the supply (Shook, Adams, Ketchen, & Craighead, 2009). Inimitable refers to the resources that are unique to the organization and is difficult to replicate by competitors. Non-substitutable resources refer to types of resources that cannot be functional substitutes (VRIN Framework, 2018). A valuable resource for the VA is the workforce and human resources. Some rare resources for the VA are inter-organizational relationships and fiscal resources. One inimitable resources of the VA is information resource that comes from the veteran’s military experience. One non-substitutable resource of this organization is its physical infrastructure. These resources are a valuable part of the VA. If this organization was in a space where competitive advantage was necessary it would be advantageous. However, since the VA is a unique government entity, these resources only improve the organization’s operational efficiency and make it easier for them to accomplish their
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