The future of stakeholder management theory: a temporal perspective

We propose adding a temporal dimension to stakeholder management theory, and assess the implications thereof for firm-level competitive advantage. We argue that a firm’s competitive advantage fundamentally depends on its capacity for stakeholder management related, transformational adaptation over time. Our new temporal stakeholder management approach builds upon insights from both the resource-based view (RBV) in strategic management and institutional theory. Stakeholder agendas and their relative salience to the firm evolve over time, a phenomenon well understood in the literature, and requiring what we call level 1 adaptation. However, the dominant direction of stakeholder pressures can also change, namely, from supporting resource heterogeneity at the firm level to fostering industry homogeneity, and vice versa. When dominant stakeholder pressures shift from supporting heterogeneity towards stimulating homogeneity in industry, the firm must engage in level 2 or transformational adaptation. Stakeholders typically provide valuable resources to the firm in an early stage. Without these resources, which foster heterogeneity (in line with RBV thinking), the firm would not exist. At a later stage, stakeholders also contribute to inter-firm homogeneity via isomorphism pressures (in line with institutional theory thinking). Adding a temporal dimension to stakeholder management theory has far reaching implications for this theory’s practical relevance to senior level management in business.

Tales of the expected: investigating the rhetorical strategies of innovation champions

Innovation continues to be high on the agenda in construction. It is widely considered to be an essential prerequisite of improved performance both for the sector at large and for individual firms. Success stories dominate the parts of the academic literature that rely heavily on the recollections of key individuals. A complementary interpretation focuses on the way innovation champions in hindsight interpret, justify and legitimize the diffusion of innovations. Emphasis is put on the temporal dimension of interpretation and how this links to rhetorical strategies and impression management tactics. Rhetorical theories are drawn upon to analyse the accounts given by innovation champions in seven facilities management organizations. In particular, the three persuasive appeals in classic rhetoric are used to highlight the rhetorical justifications mobilized in the descriptions of what took place. The findings demonstrate the usefulness of rhetorical theories in complementing studies of innovation.