Organizations typically attempt to reduce the uncertainty associated with outcome interdependence by increasing behavior interdependence by structuring predictable relationships. Organizations must respond to the demands of the environment in order to survive, but they cannot respond to every demand since demands often conflict. Out of the list on p. 44, three main factors determine the dependence of one organization upon another. The importance of the resource to the focal organization. The outside group s discretion over the allocation and use of the resource.
Discretion can derive from possession, access, use or ability to make rules and regulations.
The concentration of resource control. An organization is more dependent to the extent that the resources it needs come from one, or a few, suppliers. It is a measure of influence. However, concentrated power is not a source of influence alone. There must be no effective countervailing power.