Network theory of stakeholder influences: a revisited approach

STOCKER, FABRICIO; MASCENA, KEYSA MANUELA CUNHA; AZEVEDO, ANA CLÁUDIA; BOAVENTURA, JOÃO MAURÍCIO GAMA

doi:10.1590/1679-395176683x

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Article • Cad. EBAPE.BR 17 (spe) • Nov 2019 • https://doi.org/10.1590/1679-395176683x copy

Network theory of stakeholder influences: a revisited approach

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

The interactions among multiple stakeholders have gained importance in the last decades, given the speed with which information is spread and connections are established between individuals and groups. However, there is still a research gap, which is the lack of consolidation of the empirical studies that analyzed the phenomenon of stakeholder networks and their contribution to the advancement of the theory. Thus, this work aims to investigate the evolution of the stakeholder networks approach in the last 20 years, that is, to revisit Rowley’s theory (1997) and to bring a panorama of its evolution to the present day. This essay is based on two research scopes: Network Theories - society in networks and interoganizational networks and Theory of Stakeholders, integrated in the composition of Rowley’s proposal (1997) - Network Theory of Stakeholders Influences. From a sociometric analysis and systematic review of 228 articles collected in the Web of Science between 1997 and 2017, it was possible to analyze the evolution of this approach. Based on this reflection, it is possible to infer that recent research shifts the focus of the relations with the stakeholders, centered in the organization, to those of a decentralized network with several actors. In addition, there is a trend of studies of networks formed by groups of stakeholders and the social identities of individuals members of these groups. The contribution of this study consists of presenting an overview of the Theory of Stakeholder Networks analyzing reference networks, theoretical and empirical contributions, trends and research agenda for the theme, which will help in the development of future work.

Keywords:
Multiple Stakeholders; Interorganizational Networks; Stakeholder theory; Influence of stakeholders; Sociometric analysis

Main Assumption of the Network Theory of Stakeholders	The social networks construction model (density and centrality) proposes to go beyond the traditional analysis of dyadic ties and considers the influences and impact of the different stakeholders that do not have direct relationships with the focal company, but that affect the behavior of the company and of the entire network (ROWLEY, 1997, p. 907).
Propositions of Rowley (1997)	Proposition 1: The more the density of the network increases, the more the capacity of the stakeholders of a focal organization to restrict the organization’s actions increases.	Proposition 2: The more the centrality of the focal organization increases, the more its capacity to resist pressures from the stakeholders increases.	Proposition 3: In different density and centrality conditions, the focal organization will adopt a more active or subordinate role regarding the interests and expectations of the whole stakeholders network.
Empirical reflections on Rowley’s theory	Only by using the social networks approach is it possible to make the interlocutions of the social roles to understand the influence of the multiple actors on the decisions and strategies of companies (GARRIGA, 2009).	The stakeholders network has more connectivity with strategic decisions than expected by the focal organizations (ZEDAN and MILLER, 2017).	Intra-stakeholder alliances can have an overwhelming influence on corporate strategy (FASSIN, COLLE and FREEMAN, 2017).
Theoretical reflections on Rowley’s theory	The social analysis of stakeholder networks is a relevant source of resources for organizational value creation (SCHNEIDER and SACHS, 2017).	From using the model, it is possible to identify the resources and capacities of each stakeholder, to then get involved in a value creation process (SCIARELLI and TANI, 2013).	Companies are seen as part of a network whose densities and centrality determine how much they can be influenced by their stakeholders (ALI, 2017).
Highlights of the theory	The proposed model helps in defining the boundaries of the network to be studied.	The relational ties between the actors are channels for the transfer or “flow” of resources and value creation.	It principally considers how the pattern of relationships between the multiple actors as a whole affects the members of the network.

Fundação Getulio Vargas, Escola Brasileira de Administração Pública e de Empresas Rua Jornalista Orlando Dantas, 30 - sala 107, 22231-010 Rio de Janeiro/RJ Brasil, Tel.: (21) 3083-2731 - Rio de Janeiro - RJ - Brazil
E-mail: cadernosebape@fgv.br

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[1] Fabricio Stocker - PhD Candidate in Business Administration at University of São Paulo - School of Economics, Business and Accounting (FEA-USP), São Paulo - SP, Brazil. E-mail: fabriciostocker@usp.br