When a paper is rejected because it doesn't contain references to relevant prior research, the citations shouldn't simply be added; the relevant prior research that wasn't considered should thus be considered, and the paper should be reworked with that new context in mind.
Research should be put into the proper context in the field, not based on what the writer personally looked at. If a researcher's context is myopic enough not to include relevant prior work known or done by reviewers, then the research itself is of questionable value. If someone submits work that purports to be novel, yet they haven't done a proper literature review to include relevant studies, I'd say that is itself deceptive and more actively harmful to the field as a whole.
