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Stakeholder Influences in Organizational Survival

  • Kalle Pajunen
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    Although much has been written on declines and turnarounds, virtually no research has examined stakeholders' influence in an existence threatening crisis of an organization. This paper provides a theory and a historical case study that show how the most influential stakeholders can be identified and managed during an organizational survival. The proposed model demonstrates how stakeholders' influence in organizational survival consists of both direct resource dependence- and structure-based forms of power. The case analysis then describes an examination of actual stakeholder influences and changes in them during the decline and turnaround process. Finally, based on the findings of the case analysis and the influence identification, propositions are developed. They relate specific types of behaviours of influential stakeholders to the probability of organizational survival, showing how stakeholder management can be operationalized in an organizational turnaround. Copyright Blackwell Publishing Ltd 2006.

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    Article provided by Wiley Blackwell in its journal Journal of Management Studies.

    Volume (Year): 43 (2006)
    Issue (Month): 6 (09)
    Pages: 1261-1288

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    Handle: RePEc:bla:jomstd:v:43:y:2006:i:6:p:1261-1288
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