Stakeholder engagement strategy of technology firms: A review and applied view of stakeholder theory

Abstract

This research explores how managers and leaders of the information and communications technology (ICT) firms perceive receptiveness of start-up, growth, or mature developmental stage organizations toward ‘corporate social responsibility’ (CSR), ‘creating shared value’ (CSV), and ‘creating value for all stakeholders’ (VAS) business-stakeholder engagement models. Drawing from the three fundamental tenets of stakeholder theory, defined as ‘jointness of interest’, ‘cooperative strategic posture’ and ‘rejection of a narrowly economic view of the firm’, we found that start-up firms tend to be receptive toward VAS, growth towards CSR, and mature towards CSV business-engagement models. These exploratory findings are important as they suggest that even though a society that seeks to encourage technology companies to broaden their range of stakeholders for innovation, such as their communities or the environment, they might best direct instrumental change toward start-up firms as appreciative of VAS model. We see evidence that these new firms require some time to develop perspectives of ‘jointness of interest’ as they strive to become growth or mature firms.