Abstract:
One of the key issues explored in various management studies is why firms differ in conduct and their profitability? The stakeholder management literature suggests one plausible way of understanding these facets is to analyse and incorporate diverse stakeholders in the corporation's strategic planning and direction. Although this large and evolving theoretical base emerged as a significant framework to identify the corporation's external environment, most of these contributions primarily focus on dyadic firm-stakeholder linkages. As a consequence, it is argued that this neglects the strategic network in which a firm and its stakeholders exists and could result in an incomplete understanding of reasons behind their (focal firm and its stakeholders) behaviour, conflicts and performance considering the rapid proliferation of alliances and inter-firm relationships (Gulati, 1998).
Rowley (1997) in his stakeholder network theory highlights that to understand a focal firm's performance and relationship with each stakeholder, it is crucial to have knowledge of the network of relationships. Drawing from these arguments, stakeholder network theory proposes tour types of network structures (commander, compromiser, subordinate and solitarian) based on density of stakeholders' linkages and centrality of focal firm in the system. Although this theory provides some concrete foundations for analysing the firm-stakeholder network, it still lacks when considering for some intrinsic details of the relationships beyond the structural characteristics of the network.
As a result, this research aims to apply the theory proposed by Rowley (1997) at a firm level to understand various inherent features, going beyond the structural properties of the network. The study examines the case of a ship management company in Dubai and developed insights associated with its market penetration strategies through the roles and involvements of its networked stakeholders. Twenty-seven individuals were considered within nine stakeholder groups of the organisation. This selection was based on the primary research, a review of documents and semi-structured interviews.
The overall results support the theory's conceptualisations. However, the analysis revealed a correlation between the strength of ties in the network and the firm's influence capability in a compromiser network structure. Essentially, the study contributes by highlighting the need for managers and researchers to move beyond the shape and form of the network by systematically detailing the characteristics or intensity of ties in firm-stakeholder networks. Progressively, by adopting this relational versus atomistic approach as suggested in Freeman's (1984) stakeholder analysis, we could deepen our understanding of how firms could operationalise the networked influence of its stakeholders in various other contexts, situations and network structures.
