Samantha Twist
Business 363
Case #5: Why is Cooperation So Hard?; Daft, Chapter 5
Answer the following questions and submit your answers to the drop box in
Moodle.
Your answers should evidence you completed the assigned readings and the case
study.
1. Briefly describe a resource dependent relationship as outlined in the chapter. In these
relationships which organizations hold the power?
Resource-dependence theory says that organizations want to lessen their dependence on
other companies for supplying them resources and instead the organization wants to make
available more influential resources of their own (185). There are many different types of
resource-dependent relationships: acquisition/merger, joint venture, strategic alliance,
supply sourcing, trade association, and board interlock. The one that I chose to answer this
question was supply sourcing. In supply sourcing the organization makes contracts with
important suppliers. This allows them to get resources they may not be able to obtain easily
or as well within the organization. Normally these contracts are mutually beneficial. The
example in the textbook on page 187 is the SCA made an arrangement with many key
recycling facilities to get exclusive access to their recovered fiber. In exchange, SCA provided
them with the “financial backing to upgrade equipment” (187). The struggle is making sure
that the organization doesn’t become too overly dependent. This is mostly because the
organization doesn’t want to give the supplier all the power. In these situations large
independent companies, such as amazon, have power over smaller organizations. Suppliers
can also have power over the organization especially if they are quite unique or rare.
2. Briefly describe a collaborative network as outlined in the chapter. In these relationships
how is power used?
The collaborative network is when “companies join together to become more competitive
and to share scarce resources” (188). This is used instead of the resource dependent
relationships. They help with innovation, better services, and networking. If an organization
is entering a new market, the collaboration may be good because it makes it so that the
risks are shared. Instead of being self-focussed, the focus of the collaborative network is to
boost profits for both or all sides. It can be easier cost wise. Collaborating with the right
brands can boost the organization’s public image profile. Helps organizations reach global
markets.
Business 363
Case #5: Why is Cooperation So Hard?; Daft, Chapter 5
Answer the following questions and submit your answers to the drop box in
Moodle.
Your answers should evidence you completed the assigned readings and the case
study.
1. Briefly describe a resource dependent relationship as outlined in the chapter. In these
relationships which organizations hold the power?
Resource-dependence theory says that organizations want to lessen their dependence on
other companies for supplying them resources and instead the organization wants to make
available more influential resources of their own (185). There are many different types of
resource-dependent relationships: acquisition/merger, joint venture, strategic alliance,
supply sourcing, trade association, and board interlock. The one that I chose to answer this
question was supply sourcing. In supply sourcing the organization makes contracts with
important suppliers. This allows them to get resources they may not be able to obtain easily
or as well within the organization. Normally these contracts are mutually beneficial. The
example in the textbook on page 187 is the SCA made an arrangement with many key
recycling facilities to get exclusive access to their recovered fiber. In exchange, SCA provided
them with the “financial backing to upgrade equipment” (187). The struggle is making sure
that the organization doesn’t become too overly dependent. This is mostly because the
organization doesn’t want to give the supplier all the power. In these situations large
independent companies, such as amazon, have power over smaller organizations. Suppliers
can also have power over the organization especially if they are quite unique or rare.
2. Briefly describe a collaborative network as outlined in the chapter. In these relationships
how is power used?
The collaborative network is when “companies join together to become more competitive
and to share scarce resources” (188). This is used instead of the resource dependent
relationships. They help with innovation, better services, and networking. If an organization
is entering a new market, the collaboration may be good because it makes it so that the
risks are shared. Instead of being self-focussed, the focus of the collaborative network is to
boost profits for both or all sides. It can be easier cost wise. Collaborating with the right
brands can boost the organization’s public image profile. Helps organizations reach global
markets.
