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Business LibreTexts

4: Handling Interdependence Between Resources

  • Page ID
    23048
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    The way that resources increase or decrease through time is critical, and resources always rely on one another. Existing resources either enable growth in other resources or constrain it. This mutual reliance can even lead the whole system to collapse.

    The next step is to show how these mechanisms make resources complementary and explore the implications of this interdependence over time. This chapter will do the following:

    • show how resources can drive their own growth
    • explain how growing a resource depends on the availability of other resources, creating self-reinforcing feedback that can drive rapid growth or lead to collapse
    • describe how having too little of one resource can constrain another’s growth but also protect against decline
    • highlight the impact of these interdependences on performance through time