Stakeholder engagement as a dynamic capability. Issue 2 (18th September 2019)

• Record Type: Journal Article
• Authors: Panda, Swapna Sonali; Sangle, Shirish
• Is Part Of: Business strategy and development. Volume 3:Issue 2(2020)
• Page Start: 204
• Page End: 212
• Publication Date: 2019-09-18
• Subjects: competitive advantage -- dynamic capability -- firm strategy -- Resource‐based View -- stakeholder engagement; Community development -- Periodicals; Sustainable development -- Periodicals; Social responsibility of business -- Periodicals; Economic development -- Periodicals; Social entrepreneurship -- Periodicals; 338.9
• DOI: 10.1002/bsd2.89
• Languages: English
• ISSNs: 2572-3170

Abstract

Abstract: How can some firms gain and manage competitive advantage over their peers? In a dynamic scenario, what makes a firm stand out from its competitors? This paper attempts to answer these questions by taking a dynamic capability lens and proposing that stakeholder engagement is a key reason for a firm to attain competitive advantage. This paper attempts to explain how and why stakeholder engagement is a dynamic capability by establishing (a) stakeholders as a resource, (b) capability required to explore this resource, and (c) dynamics of the firm–stakeholder relationship. Finally, this paper describes the four different strategies adopted by the firm, namely, reactive, defensive, accommodative, and proactive, and recommends the suitable stakeholder engagement techniques for each of these strategies.