Systemic Approach to Stakeholder Management in a Transition Economy Context : Action Research Study of an Albanian Cement Factory

Abstract

This research provides a systemic approach to stakeholder management in a transition economy context. The research was carried out as a qualitative action study, with the participation of selected management team members of a single Albanian company. Each participant was selected based to their role in being responsible for communication with a key stakeholder group of the company.

Stakeholder management theory can be seen as consisting of three main parts: normative, analytic and strategic theories. Normative theory analyzes based on ethics and morals which stakeholders should be managed by the organization. Analytic theory views stakeholders based on their salience to the company’s goals and objectives. Strategic theory covers the management aspects of stakeholder communication. For the purpose of this research, the analytic and strategic theories have been the focal point, together with network approach to stakeholder theory, which sees the company existing as a part of a larger network of business and stakeholder relationships.

The research was done in two phases. In the first phase the researcher emancipated himself in the company and used participant observation to draw conclusions and insights on the functioning of the company under inquiry. In the second phase the role of the researcher was less central inside the organization, and a systemic model of the stakeholder management system was created, based on Checkland’s Soft Systems Methodology. Four scenarios of possible futures of the company were also created and their implications for stakeholder network management were discussed in the research.

One of the key conclusions of the research was that personal networks of contacts are key to success in transition economic contexts, as opposed to more developed economies. Transition economies require a different set of network capabilities and communication skills between the members of the management team, as stakeholder management is a systemic feature and requires the participation of several managers working together, to allow for the organization to adapt to possible fast changes in its stakeholder network environment. This is often a challenge in a transition economy context, as organizations are typically classic vertically hierarchical entities, where various departments are not used to proactively sharing knowledge with each other.