SETTLING INTERNAL STRENGTHS AND EXTERNAL DEPENDENCIES: A CONCEPTUAL FRAMEWORK INTEGRATING RDT AND RBV THEORIES FOR ORGANIZATIONAL SURVIVAL
Abstract
The purpose of this study is to explore the integration of two mainstream theories of strategic management rooted in resource Dependency Theory (RDT) and Resource-Based View (RBV) in utilizing the internal strengths and external dependencies of companies. This study will explore the area of theory integration by using a literature review method that involves the collection, analysis and synthesis of influential publications on both theories, semi-systematic literature review is carried out with narrative analysis techniques. The results of the study provide a conceptual framework in understanding organizational strategy and to gain stability in managing the main sources of competitive advantage and dependency of the organization. Studies of how organizations are leveraging their internal strengths, and external dependencies can reveal improvement trends and under-explored areas in strategic management research. The implications of exploring the integration of these two key perspectives will enhance the prospect of using both theories together in strategic planning, organizational behavior and decision-making, and serve as an integration view for managers to engage in process utilization. Internal forces and external dependencies are rooted in two mainstream theories: Resource Dependency Theory (RDT) and Resource Based View (RBV). This study explores the area of integration of these theories using a literature review method that involves the collection, analysis, and synthesis of existing influential publications from both theories. The implications of this research provide a conceptual framework in understanding organizational strategy and to gain stability in managing the main sources of competitive advantage and dependency of the organization
Keywords
DOI: http://dx.doi.org/10.19166/ms.v4i2.8745
Full Text:
PDFReferences
Akram, F., & Ul Haq, M. A. (2022). Integrating agency and resource dependence theories to examine the impact of corporate governance and innovation on firm performance. Cogent Business and Management, 9, 1–22. https://doi.org/10.1080/23311975.2022.2152538
Ancona, D. G. (1991). The changing role of teams in organizations: Strategies for survival. MIT Working.
Arbogust, M. (2020). Why do nonprofits fail? A quantitative study of form 990 information in the years preceding closure. School of Public Service Theses and Dissertations. https://doi.org/10.25777/n8yg-9475
Bakri, M. A., Ayub, N., & Gazali, H. M. (2024). Integrating agency and resource dependency theories: the moderating effect of board size on the relationship between dividends and firm value in Malaysia. Future Business Journal, 10(37), 1–10. https://doi.org/10.1186/s43093-024-00324-6
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Black, J. A., & Boal, K. B. (1994). Strategic resources: Traits, configurations and paths to sustainable competitive advantage. Strategic Journal Management, 15, 131–148. https://doi.org/10.1002/smj.4250151009
Bradenburger, A., & Nalebuff, B. (2021). The rules of co-opetition. Harvard Business School Publishing.
Comănescu, E. L., Radu, I. A. P., Stan, C. P., & Ponea, M. G. (2018). Competitiveness of companies in the competitive environment – the essential question of performance management. Journal of De Gruyter International Conference Knowledge-based Organization, 24(1), 273–278. https://10.1515/kbo-2018-0043
Costa, J. F. F. E. (2023). The impact of the resource-based view and sustainability on luxury fashion: A bibliometric review analysis. Repository ISCTE Business School. https://repositorio.iscte-iul.pt/bitstream/10071/29162/1/Master_julia_fonseca_costa.pdf
Durand, R., Grant, R. M., & Madsen, T. L. (2017). The expanding domain of strategic management research and the quest for integration. Strategic Management Journal, 38, 4–16. http://dx.doi.org/10.1002/smj.2607
Febrianti, D., Oktarini, K. W., & Firza, E. (2024). The external control of organization; A resource dependence perspective (the book review). Journal of Management, Entrepreneur and Cooperative, 3(1), 13–24. https://doi.org/10.56869/jmec.v3i1.534
Fiorini, P. D. C., Seles, B. M. R. P., Jabbour, C. J. C., Mariano, E. B. & Jabbour, A. B. L. D. S. (2018). Management theory and big data literature: From a review to a research agenda. International Journal of Information Management, 43, 112–129. https://doi.org/10.1016/j.ijinfomgt.2018.07.005
Freeman, R. E., & Dmytriyev, S. (2017). Corporate social responsibility and stakeholder theory: Learning from each other. Journal of Symphonya Emerging Issues in Management, 2(1), 7–15. https://doi.org/10.4468/2017.1.02freeman.dmytriyev
Freudenreich, B., Freund, F. L., & Schaltegger, S. (2020). A stakeholder theory perspective on business models: Value creation for sustainability. Journal of Business Ethics, 166, 3–18. https://doi.org/10.1007/s10551-019-04112-z
Grant, M. J., & Booth, A. (2009). A typology of reviews: An analysis of 14 review types and associated methodologies. Journal Compilation, 26, 91–108. https://10.1111/j.1471-1842.2009.00848.x
Hamel, G. & Prahalad, C. K. (2003). Competing for the future. HBR, OnPoint.
Hillman, A. J., Withers, M. C., & Collins, B. J. (2009). Resource dependence theory: A review. Journal of Management, 35(6), 1404–1427. https://doi.org/10.1177/0149206309343469
Hoopes, D., & Madsen, T. L. (2022). A dynamic theory of the strategic firm. Strategic Management Review, 3(2), 1–32. http://dx.doi.org/10.1561/111.00000049
Kasali, R. (2023). Disruption. Jakarta: PT Gramedia Pustaka Utama.
Kim, S. T., Lee, H. H., & Hwang, T. (2020). Logistics integration in the supply chain: A resource dependence theory perspective. International Journal of Quality Innovation, 6(5), 1–14. https://doi.org/10.1186/s40887-020-00039-w
Lehtinen, J., Aaltonen, K., & Rajala, R. (2019). Stakeholder management in complex product systems: Practices and rationales for engagement and disengagement. Journal of Industrial Marketing Management, 79, 58–70. https://doi.org/10.1016/j.indmarman.2018.08.011
Lepoutre, J. (2008). Proactive environmental strategies in small businesses: Resources, institutions and dynamic capabilities. Ghent University.
Lubis, N. W. (2022). Resource Based View (RBV) in improving company strategic capacity. Research Horizon Journal, 2(6), 587–596. https://doi.org/10.54518/rh.2.6.2022.587-596
Luis, G. J., Medina, P. S. S., & Pichardo, R. D. (2019). Environmental innovation: advancing the resource-advantage theory of competition. International Journal of Management and Marketing Research, 12(1), 23–36.
Madanaguli, A., Parida, V., Sjödin, D., & Oghazi, P. (2023). Literature review on industrial digital platforms: A business model perspective and suggestions for future research. Journal of Technological Forecasting and Social Change, 194, 1–17. https://doi.org/10.1016/j.techfore.2023.122606
Madhok, A., Li, S., & Priem, R. L. (2010). The resource-based view revisited: Comparative firm advantage, willingness-based isolating mechanisms and competitive heterogeneity. European Management Review, 7, 91–100. https://10.1057/emr.2010.6
Mat, N. H. N., Jaafar, S. M., & Mohamad, A. S. (2022). Dealing with uncertainty: An analysis of VRIN resources for SME’s business survival. International Journal of Business and Society, 23(1), 542–559. https://doi.org/10.33736/ijbs.4629.2022
McRae, H. (1994). The world in 2020. Boston: Harvard Business School Press.
Mehta, M., Pancholi, G., & Saxena, A. (2024). Organizational resilience and sustainability: A bibliometric analysis. Cogent Business and Management, 11(1), 1–15. https://10.1080/23311975.2023.2294513
Mong, S. G., Mohamed, S. J., Misnan, M. S., & Palis, P. (2021). Integrating resource-based view and performance improvement theory in developing maintenance management continuous improvement model: A conceptual framework. Journal Estudios de Economia Aplicada, 39(4), 1–13. http://dx.doi.org/10.25115/eea.v39i4.4479
Nayak, B., Bhattacharyya, S. S., & Krishnamoorthy, B. (2022). Integrating the dialectic perspective of resource-based view and industrial organization theory for competitive advantage – A review and research agenda. Journal of Business and Industrial Marketing, 38(3), 656–679. https://doi.org/10.1108/JBIM-06-2021-0306
Nienhüser, W. (2008). Resource dependence theory: How well does it explain behavior of organizations?. Management Revue, 19, 9–32. https://hdl.handle.net/10419/78991
Peteraf, M. A. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14, 179–191.
Pfeffer, J., & Salancik, G. R. (2003). The external control of organizations: A resource dependence perspective. Stanford University Press.
Porter, M. E. (1980). Competitive strategy, techniques for analyzing industries and competitors, with a new introduction. The Free Press.
Porter, M. E. (1998). Competitive advantage, creating and sustaining superior performance. The Free Press.
Purkayastha, A., Karna, A., Sharma, S., & Bhadra, D. (2021). Board’s human capital resource and internationalization of emerging market firms: Toward in integrated agency-resource dependence perspective. Journal of Business Research, 135, 391–407. https://doi.org/10.1016/j.jbusres.2021.06.064
Putra, I. G. C., Wiagustini, N. L. P., Ramantha, I. W., & Sedana, I. B. P. (2021). Financial sustainability based on resource-based view theory and knowledge-based view theory. Academy of Accounting and Financial Studies Journal, 25(2), 1–15.
Robertson, C. (2024). The Relationship between an organization and its environment. Marketing for Golf Management. https://creativecommons.org/licenses/by-nc-sa/4.0/
Sirmon, D. G., Hitt, M. A., Ireland, R. D., & Gilbert, B. A. (2012). Resource orchestration to create competitive advantage: Breadth, depth, and life cycle effects. Journal of Management, 37(5), 1390–1412. http://dx.doi.org/10.1177/0149206310385695
Snyder, H. (2019). Literature review as a research methodology: An overview and guidelines. Journal of Business Research, 104, 333–339. https://doi.org/10.1016/j.jbusres.2019.07.039
Teece, D. J. (2022). Strategy dynamics and the theory of the firm: Homage to Richard Rumelt. Strategic Management Review, 3(2), 265–294. https://dx.doi.org/10.1561/111.00000044
Valaskova, K., Gajdosikova, D., & Kramaric, T. P. (2022). How important is the business environment for the performance of enterprises? Case study of selected European countries. Central European Business Review, 11(4), 85–110. https://doi.org/10.18267/j.cebr.300
Wronka, F. A., & Szymaniec, K. (2012). Resource based view and resource dependence theory in decision making process of public organization – Research findings. Journal Management Versita, 16(2), 16–29. https://doi.org/10.2478/v10286-012-0052-2
Yan, C. C., Hui, Y. Z., & Xin, L. (2021). The relationship between board size and firm performance. E3S Web of Conference, EDP Sciences, 257, 1–6. https://doi.org/10.1051/e3sconf/202125702079
Yueh, L. (2023). Belajar dari 12 ekonom besar dunia. Jakarta: PT. Gramedia Pustaka Utama.
Refbacks
- There are currently no refbacks.
Copyright (c) 2024 Daniel Ong Kim Kui; Anton Wachidin Widjaja; Rudy Pramono
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Fakultas Ekonomi dan Bisnis | Universitas Pelita Harapan | Kampus Universitas Pelita Harapan | Gedung F Lt. 12 | Lippo Karawaci, Tangerang - 15811 | Telp 021-5460901 | Fax 54210992