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Stakeholder Influences in Organizational Survival


  • Kalle Pajunen


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.

Suggested Citation

  • Kalle Pajunen, 2006. "Stakeholder Influences in Organizational Survival," Journal of Management Studies, Wiley Blackwell, vol. 43(6), pages 1261-1288, September.
  • Handle: RePEc:bla:jomstd:v:43:y:2006:i:6:p:1261-1288

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    Cited by:

    1. Benjamin Neville & Simon Bell & Gregory Whitwell, 2011. "Stakeholder Salience Revisited: Refining, Redefining, and Refueling an Underdeveloped Conceptual Tool," Journal of Business Ethics, Springer, vol. 102(3), pages 357-378, September.
    2. Douglas A. Bosse & Richard Coughlan, 2016. "Stakeholder Relationship Bonds," Journal of Management Studies, Wiley Blackwell, vol. 53(7), pages 1197-1222, November.
    3. Jose Lopez-De-Pedro & Eva Rimbau-Gilabert, 2012. "Stakeholder Approach: What Effects Should We Take into Account in Contemporary Societies?," Journal of Business Ethics, Springer, vol. 107(2), pages 147-158, May.
    4. repec:kap:jbuset:v:143:y:2017:i:3:d:10.1007_s10551-015-2768-0 is not listed on IDEAS
    5. Marjo Siltaoja & Merja Lähdesmäki, 2015. "From Rationality to Emotionally Embedded Relations: Envy as a Signal of Power in Stakeholder Relations," Journal of Business Ethics, Springer, vol. 128(4), pages 837-850, June.
    6. Andrew Crane & Trish Ruebottom, 2011. "Stakeholder Theory and Social Identity: Rethinking Stakeholder Identification," Journal of Business Ethics, Springer, vol. 102(1), pages 77-87, March.
    7. Anne Marie Ward & John Forker, 2017. "Financial Management Effectiveness and Board Gender Diversity in Member-Governed, Community Financial Institutions," Journal of Business Ethics, Springer, vol. 141(2), pages 351-366, March.
    8. repec:kap:jbuset:v:144:y:2017:i:1:d:10.1007_s10551-015-2845-4 is not listed on IDEAS
    9. Achim Schmitt & Sebastian Raisch, 2013. "Corporate Turnarounds: The Duality of Retrenchment and Recovery," Journal of Management Studies, Wiley Blackwell, vol. 50(7), pages 1216-1244, November.
    10. Dominik van Aaken & Violetta Splitter & David Seidl, 2012. "Why Do Corporate Actors Engage in Pro-Social Behavior? A Bourdieusian Perspective on Corporate Social Responsibility," Working Papers 319, University of Zurich, Department of Business Administration (IBW).
    11. Kalle Pajunen, 2010. "A “Black Box” of Stakeholder Thinking," Journal of Business Ethics, Springer, vol. 96(1), pages 27-32, August.
    12. Chanchai Tangpong & Michael Abebe & Zonghui Li, 2015. "A Temporal Approach to Retrenchment and Successful Turnaround in Declining Firms," Journal of Management Studies, Wiley Blackwell, vol. 52(5), pages 647-677, July.

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