Stakeholder-Driven Strategic Renewal

Abstract

<p>In an ever-changing global marketplace, organizations must adapt and renew to survive. To achieve such strategic renewal, however, organizations must overcome the inertial forces of existing competencies to evolve and develop new ones. Drawing on relational and behavioral theory, we describe how three aspects of stakeholder relationship management-employee alertness, openness to change, and knowledge exchange-both facilitate the exploration activities necessary for strategic renewal and avert the behavioral tendency toward strategic inertia. Our analysis of stakeholder-driven strategic renewal not only extends and elaborates the concept of stakeholder relationship management by making explicit its connections to strategic renewal, but it also highlights the importance of the proper fit between employee roles and dispositions in shaping the effectiveness of the managing for stakeholders approach.</p>