Resource dependence theory — Wikipedia
Buffering strategies
- Pre-processing to enable routing
- Stockpiling of inputs — raw materials, products, money
- Levelling or smoothing: reduce fluctuation of inputs and/or outputs by active stimulation of suppliers OR active demand generation (aka advertising)
- Forecasting: anticipate changes and adapt to them
- Adjusting scale: downsizing — focusing efforts
Bridging strategies
- Negotiation
- Exchange of resources (e.g., via contract)
- Interlocking directorates / co-optation (e.g., being on each other’s board of directors)
- Hierarchical contracts (e.g., still getting paid if a subcontractor (aka dependency) doesn’t perform)
- Joint venture
- Strategic alliances to pool resources
- Associations or cartels
- Vertical merger
- Horizontal merger
- Diversification
