resource (noun, re-source, /ˈriːsɔːrs/) dependence (noun, de-pen-dence, /dɪˈpendəns/)
Definition: is a business’s or a company’s reliance on the external sources and their inputs such as capital, materials, labor, energy, etc. Too much resource dependency leads to the business uncertainty, which consequently creates the risk of the increased external control. In order to reduce the resource dependence level and the potential risks, management teams of any business constantly work on alternative strategies and business plans. The key factors that might influence a company’s level of resource dependence include the importance, the abundance, and the control of the external resources.
In a Sentence:
- In the recent years, our company has been showing a high level of resource dependence, which makes our position in the market quite risky and unstable.
- The resource dependence they are facing right now prevents them from satisfying the customers’ needs completely.
- In order to eliminate our resource dependence, we decided to use our own materials in the production.
Synonyms and related words: recourse, resource driven, external dependence, capital resource, labor resource, energy resource
