Title: Value cycle model: managing value through stakeholder management

Authors: Hassan Qudrat-Ullah, Victor L. Kane

Addresses: School of Administrative Studies, York University, 282 Atkinson, 4700 Keele Street, Toronto, ON, M3J 1P3, Canada. ' College of Business Administration, Konkuk University, 1 Hwayang-dong, Gwangjin-gu, Seoul 143-701, Korea

Abstract: In today|s highly competitive, complex and dynamic environments, creating value for all stakeholders is not an easy a task. In any value-creating endeavour, management needs to effectively understand the dynamic features of value systems of the firm. The proposition in this paper is that the singular, monistic and short-term oriented shareholder perspective fails to capture the dynamics of value management from the standpoint of all stakeholders, not just shareholders. In this article we provide a new characterisation of stakeholder value in terms of four constructs: interdependency, mixed-tangibility, temporality and commitment-intensity. Based on this characterisation, we propose a new conceptual model – stakeholder value cycle model (SVCM) – for stakeholder value management. This research seeks to improve the understanding of the dynamics of stakeholder values by increasing our knowledge of how the strategic decisions, systemic leverage, resources and the new characteristics of stakeholder value impact value systems of a firm.

Keywords: stakeholder management; strategic decisions; systemic leverage; system dynamics; value systems; shareholders; interdependency; mixed-tangibility; temporality; commitment-intensity; stakeholder value cycle model; SVCM; technology adoption; value chain management; ICT; information technology; communications technology; culture; socio-technical aspects.

DOI: 10.1504/IJVCM.2010.031807

International Journal of Value Chain Management, 2010 Vol.4 No.1/2, pp.153 - 169

Published online: 24 Feb 2010 *

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