Theoretical Interplay of Resource Dependence and Institutional Theory in Context Bound Organisations

Abstract

This conceptual study delves into the functional relationship between Resource Dependence and Institutional Theory. It describes, in particular, the interplay between resources and institutional settings on the one hand and organisations (context bound) on the other. This research reveals two paradoxical outcomes. First, context bound (Protected Designation of Origin or PDO) organisations are not necessarily resource dependent on specialised raw material producers due to the interplay between resources, home rivalry and finance; sidelining a robust relationship between resource producers and organisations. Second, institutions may not in some instances conform to institutional settings and adopt decoupling practices inappropriate to the environment by hampering the internationalisation of context bound organisations. This research which has an industry related focus shall in essence generate new insights for it attempts to lay a new foundation for future research in international business and context bound organisations therein.