Resource Dependency Risk Management

Abstract

Resources are vital for any business. To survive, organizations have to both use and allocate some resources. Resource availability is one of the biggest uncertainty sources for managers. To get optimum resources from optimum sources, managers develop strategies. Sources of resources are also sources of risks. To take correct risk, sources should be taken into careful consideration. Third parties are always sources of risk. Risk includes two sides-both threat and opportunity. We believe that there is high relation between risk management and resource dependency. This is important since managing the uncertainty of sourcing is considered in setting corporate risk strategies. In this chapter, we tried to examine the link between corporate management strategies in view of resource availability uncertainty with practices in business, especially the civil aviation business. We have developed some hypotheses in this concept. The collection of data for the analyses of the hypotheses has been gathered by interviews that were held with the high-level executives from TAV Airports Holding: TAV companies' practices have been investigated to expose the relationship between resource dependence and risk management practices. It has been concluded in the research that resource dependence and theories of transaction costs, especially in managing the uncertainty of sourcing, are taken into account for development of the corporate risk strategies. This chapter attempted to obtain information about the practices in the sector with using semi-structured interviews from the qualitative techniques. Also, interviews were conducted with senior managers of Sun Express Airlines and the Budapest Manager of Turkish Airlines and Fraport IC Ictas Antalya Airport Terminal Investment and Management Inc.; the interview form was also presented. Therefore, both airport station management and airline management were in the scope of the study. An attempt to obtain the total original image with the leading representatives of the sector in the country and the perspective of enterprise risk management in the light of the hypotheses was made. The findings proved that in order to achieve in business strategies, corporates should find an optimum way to provide scarce resources. The setting of resource dependency based strategies was found necessary for competitive differentiation and the institutional sustainability. What we conclude is, manager's strategies may change according to resource uncertainty, resource availability, and competitive qualifications.