External Stakeholder Management Strategies and Resources in Megaprojects: An Organizational Power Perspective

Abstract

Megaprojects involve managing external stakeholders with diverse interests. Using an Indian megaproject case study, we discuss how the project managed external stakeholders through strategies such as: persuasion, deputation, give and take, extra work for stakeholders, and flexibility. Drawing from theories and frameworks of power, we explain how these strategies emerge through a process of tactical clustering. We also analyze the resources available to the project team—such as recruitment discretion, government backing, and fund discretion—that influence these power dynamics and enable these strategies. We posit that changes in the resource base can significantly affect strategic action and, in turn, megaproject outcomes.