Question

Does Population Ecology Theory explain unwillingness to change in dynamic environments

Does resource dependency theory suggest anything about reaction to dynamic events in the environment. How about organizational theory

Answer 1

Population Ecology Theory: Population Ecology Theory assumes that organizational change occurs at a population level. This theory does not explain the unwillingness to change to environmental conditions. Rather it assumes that organizations adapt to their environment according to its needs and those populations which adapt the best are survived. In this way, the organization that is survived can sustain in the market as long as it adapts itself to the surrounding environmental situations.

Resource Dependency Theory: This theory suggests that organizations should involve in activities or transactions with other organizations in its environment. This is because; in these growing market situations, there is a scarcity for the resources in almost every organization. Such kind of transactions with its competitors or with organizations in same environment develops bargaining position in resource related transactions.

As the environment is dynamic, these sort of links and dependencies with other organizations in the same niche are considered to be essential.

Organizational Theory: Organizational Theory is a combination of Sociology, Biology and Economics. This theory gives an insight of how an organization emerge, grow and die.

This theory is mainly concerned with, how a dynamic environment helps in the rate of growth and decline of organization.