Extensive Examination of Type- 4 Theory: Resource Dependent Approach

Abstract

This paper offers an extensive examination of the Type-4 theory that seeks to address the needs of today’s reality through the lens of resource dependence approach. The paper presents a discourse on the features of Type-4 theory and focused on resource as a key factor in power determination and its implications for organizations. The role of resource in power and politics within the organization was also reviewed. It was noted that resource which is mostly external to the organization is most a times linked to its power tussles, a tool to manage uncertainty and decision outcomes and, effectiveness and performance are associated with efficient use of resources. In conclusion, it is affirmed that a firm grip of Type-4 theory is vital for preservation, growth, and survival. Based on our conclusion, we recommend that both profit and non-profit organization that wishes to survive in a contemporary business environment must broaden up to Type-4 theory.

Keywords: Type-4 Theory, Resource Dependence Theory, Power, Politics, Decision-Making

DOI: 10.7176/EJBM/11-36-12

Publication date: December 31^st 2019