A Natural Resource Dependence Perspective of the Firm: How and Why Firms Manage Natural Resource Scarcity

Abstract

Although natural resource scarcity is a pressing issue for many organizations, it has received little attention in management research. Drawing on resource dependence theory, this article theorizes how organizations manage uncertainty from their dependence on scarce natural resources. For this end, it explains how socio-ecological processes involving anthropogenic impacts on ecosystem services cause this form of uncertainty. It then proposes that organizations develop wide-ranging responses to such uncertainty, depending on their predominant institutional logics, from protecting and restoring ecosystems that provision critical natural resources to further developing those ecosystems for optimal resource yields at the risk of degrading them. The article adds to the limited existing research on the unique challenges of managing natural resource scarcity and extends resource dependence theory by accounting for socio-ecological dynamics that create uncertainty regarding natural resources.