INTERNATIONAL JOURNAL OF SOCIAL HUMANITIES SCIENCES RESEARCH (JSHSR)

Abstract


POWER BALANCE IN ORGANIZATIONAL RELATIONS: RESOURCE DEPENDENCE VS TRANSACTION COST

In its attempts to comprehend power balance in organizations, resource dependence and transaction cost are unique among organizational theories. While resource dependence has been a terrifying dilemma, transaction costs are a significant burden on organizations. Most of the cases that organizations are trying to get away from resource dependency may be ending up causing an increase in transaction costs. Theoretically, the correct power balance at a certain extent of resource dependency may cause fewer transaction costs. This power balance between the two theories becomes more critical, especially amid uncertainties such as pandemics or black swan events. Also, this study underlines the value of intracompany and intercompany communications while maximizing stakeholders' benefits and using the limited sources of the world very sustainable.



Keywords
Resource Dependency, Transaction Cost, Power Balance



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