Developing a Scientific Foundation for Stakeholder Theory

58 Pages Posted: 7 Sep 2019 Last revised: 13 Nov 2020

See all articles by Panagiotis Andrikopoulos

Panagiotis Andrikopoulos

Centre for Financial and Corporate Integrity (CFCI), Coventry University

Nick Webber

University of Warwick - Warwick Business School

Nicholas Theodorakopoulos

Aston University - Aston Business School

Date Written: November 1, 2020

Abstract

We advance a unifying theoretical framework for stakeholder analysis by way of a rigorous mathematical formulation that can be used to inform both qualitative and quantitative research.
The framework comprises five components contributing to stakeholder salience. Three of these relate to power, legitimacy and urgency, well known from classical stakeholder theory. The remaining two components represent types of resistance to change within an organization. Stakeholders are modeled as interactive entities, while legitimacy arises through a mathematical projection mechanism.
Individual stakeholder groups seek to maximize esteem while minimizing pressure exerted on them by other agents. A novel mechanism transforms wealth into esteem; wealth forms only part of a stakeholder group's total utility.

Keywords: Stakeholder theory, dynamics modelling, salience attributes, isomorphism, legitimacy

JEL Classification: A13, G30, G34, L21, M10, M14

Suggested Citation

Andrikopoulos, Panagiotis and Webber, Nick and Theodorakopoulos, Nicholas, Developing a Scientific Foundation for Stakeholder Theory (November 1, 2020). Available at SSRN: https://ssrn.com/abstract=3446806 or http://dx.doi.org/10.2139/ssrn.3446806

Panagiotis Andrikopoulos (Contact Author)

Centre for Financial and Corporate Integrity (CFCI), Coventry University ( email )

Priory Street
Coventry, CV1 5FB
United Kingdom
+44(0)247 765 7920 (Phone)

Nick Webber

University of Warwick - Warwick Business School ( email )

Coventry CV4 7AL
United Kingdom
+(44) 24 7652 4664 (Phone)

Nicholas Theodorakopoulos

Aston University - Aston Business School ( email )

Aston Triangle
Birmingham, B47ET
United Kingdom

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