Organisational Niche-Construction and Stakeholder Analysis: Concepts and Implications

Abstract

A countless variety of stakeholder approaches are referenced by management scholars and practitioners, with theories on stakeholders divided into normative and descriptive categories and managerial and instrumental theories. This paper addresses the normative stakeholder approach and evaluates its strengths and weaknesses in the context of a new framework. We argue that stakeholder theory arose from a philosophical and scientific tradition where the object of scientific analysis was divided into constituent parts that made them easier to understand and to analyse. Although this process of ‘reduction to the minimum’ is powerful and has worked very well in the past, we argue that the excessive emphasis on elemental parts, while ignoring the whole, runs the risk of overlooking the actual nature of organisation:environment relationships. Moreover, this traditional stakeholder approach can overlook change as a fundamental variable in management processes. The specific contribution of this paper is integrating stakeholder theories with an organisation:environment approach grounded in niche-construction and specie preservation. Doing so allows stakeholder theory not only to embrace human agency as part of a broadened evolutionary dynamic but also to incorporate within this view an improved understanding of the co-evolutionary processes of organisation:environment relationships and the nature of change. In this proposed niche-construction framework, stakeholders are explicitly identified as integral actors in, and co-creators of, organisational-environmental change.