Does Resource Diversity Confer Organizational Autonomy In Arts Organizations? Extending Resource Dependence Theory

AbstractResource dependence theory holds that organizations adopt a variety of strategies to manage their dependence on resources drawn from the external environment. Most research on resource dependence theory, however, has focused on empirical contexts in which the organization is dependent upon a dominant single external source of resources. We have little understanding of which dependencies take priority over others in contexts where multiple critical dependencies co-exist. More importantly, we don't know how different types of dependencies differentially affect organizational autonomy. We address these questions in this study of over six hundred performing arts organizations. Our analysis reveals a powerful configurational effect in which different categories of resources differentially affect organizational action. We also demonstrate how organizations strategically manage their portfolio of resources in an effort to maximize their autonomy.