Which theory explains that organizations depend on resources held externally?

Resource Dependency Theory is the concept that explicitly examines how organizations rely on external resources to operate and achieve their objectives. This theory posits that in order to survive and thrive, organizations must secure essential resources that they do not possess internally, which could include funding, materials, talent, or technological support. The theory underscores the interdependence between organizations and their environments, emphasizing that the ability to acquire and manage these external resources is crucial for organizational success.

This theory also suggests that organizations often engage in strategic actions—like forming alliances or partnerships, negotiating contracts, or even competing—to maintain control over these necessary resources. As a result, understanding Resource Dependency Theory is key for analyzing organizational behavior, particularly within the context of policing and public safety agencies, which must navigate complex external environments to gather the resources they need for effective operation.