Value creation through stakeholder synergy

TLDR

Our “stakeholder synergy” perspective identifies new value‑creation opportunities that are especially effective strategically because a single action can simultaneously increase different types of value for two or more essential stakeholder groups without reducing value for any other group, and this is possible because multiple potential sources of value creation exist for each group. Actions that meet these criteria enlarge the value “pie” available to essential stakeholder groups, attracting exceptional stakeholders and securing their increased effort and commitment, thereby extending stakeholder theory into strategy and offering insights for broader value creation that can produce sustainable competitive advantage. © 2014 John Wiley & Sons, Ltd.

Abstract

Our "stakeholder synergy" perspective identifies new value creation opportunities that are especially effective strategically because a single strategic action (1) increases different types of value for two or more essential stakeholder groups simultaneously, and (2) does not reduce the value already received by any other essential stakeholder group. This result is obtainable because multiple potential sources of value creation exist for each essential stakeholder group. Actions that meet these criteria increase the size of the value "pie" available for essential stakeholder groups, and thereby serve to attract exceptional stakeholders and obtain their increasing effort and commitment. The stakeholder synergy perspective extends stakeholder theory further into the strategy realm, and offers insights for realizing broader value creation that is more likely to produce sustainable competitive advantage. Copyright © 2014 John Wiley & Sons, Ltd.