Interorganizational Dependence in Supply Chain Dynamics
Summary
Interorganizational dependence refers to the degree to which firms within a supply chain rely on one another for critical resources, capabilities and information. Such dependence shapes power distributions, relational contracts and strategic decision-making, influencing the reliability, flexibility and resilience of global production networks. Resource dependence theory frames this interconnection as a balance between autonomy and embeddedness, where excessive reliance on a single partner may create vulnerability, while diversified interdependencies can foster collaboration and mutual investment. Contemporary supply chains, characterised by digital platforms, just-in-time logistics and geographically dispersed production, amplify the complexity of these relationships. Firms engage in supplier-specific investments to secure preferential access but must also manage the risk that heightened dependence may erode bargaining power or lead to opportunistic behaviour. Relational governance mechanisms—trust-building, joint planning and shared performance metrics—serve to mitigate uncertainty and align incentives. Moreover, environmental turbulence, from geopolitical disruption to pandemics, underscores the importance of adaptive interfirm arrangements that balance strategic commitment with the flexibility to reconfigure ties as conditions evolve. The global significance of these dynamics is evident in sectors as diverse as automotive manufacturing, pharmaceuticals and consumer electronics, where interorganizational dependence underpins not only operational continuity but also trajectories of innovation and sustainability.
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Interorganizational Dependence in Supply Chain Dynamics publication trend
The graph below shows the total number of articles in interorganizational dependence in supply chain dynamics across all publications each year (not limited to Nature Index journals).
Technical terms
Interorganizational dependence: The extent to which one firm relies on another for essential resources, capabilities or information within a supply chain network.
Resource dependence theory: A theoretical framework positing that organisations must manage external dependencies to secure vital resources and maintain autonomy.
Supplier-specific investments: Expenditures made by a buying firm to develop assets, processes or technologies that are tailored to a particular supplier relationship.
Relational governance: Mechanisms such as trust, joint planning and shared metrics that regulate interfirm behaviour in the absence of formal contracts.
Risk sharing: The allocation of operational, financial or asset-related risks among supply chain partners through contractual or informal arrangements.
References
- The Interplay Between Supplier-Specific Investments and Supplier Dependence: Do Two Pluses Make a Minus?. Journal of Management (2022).
- Profit or Growth? The Impacts of Supplier Dependence and Customer Dependence on SMEs’ Performance. Sustainability (2025).
- Risk-sharing and its role in manufacturer’s innovation. Production & Manufacturing Research (2023).
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