Stakeholder Engagement as a Core Management Function: Analysing the Business Value of Stakeholder Engagement for Nigerian Business Organizations

Abstract

This article examines the importance of adopting credible stakeholder engagement (SE) as a core management function, with particular reference to Nigerian business organizations. It used content analysis method to specifically examine the role of SE in business organizations; determine the utility of credible SE as a core management function rather than as an add-on; and trace measurable links between SE and business value (profit) with reference to selected multinational companies operating in Nigeria’s Niger Delta region. The article situated its arguments within the Stakeholder Model of Business Value Creation, which it used as a conceptual analytical framework to justify why business organizations in the region should dedicate more attention and resources to quality SE for sustainable profitability. As the findings show, business organizations in the Niger Delta tend to treat SE as an add-on rather than as a core management function. Therefore, given the business value that effective SE adds to an organization, a paradigm shift is required. Business organizations in Nigeria should elevate SE to core management level with the requisite budget to make it fully functional.

An analysis of the effects of stakeholders management on IT project risks using Delphi and design of experiments methods

“…According to the experts, this factor has no significant impact on the analyzed variable. Overall, these findings are in accordance with findings reported by Isike and Ajeh (2017) as they show that the stakeholder engagement is an important tool to reduce negative risks when used with quality. Apart from that, the communication with stakeholders encourages an efficient culture of risk management that considers different visions and that benefits the project development (Imbrizi and Mazieri, 2018;Willumsen et al, 2019).…”

“…The engagement management aims to reduce the resistance and increase the collaboration between stakeholders to decrease risks and costs and to improve project quality (Isike and Ajeh, 2017;PMI, 2017). On the other hand, the lack of interactions and communication between stakeholders can lead to misalignment and conflicts, which complicates problem-solving.…”

“…The stakeholders' participation on project decisions and activities enables new market opportunities and enhances the enterprise capacity to deal with risks (Isike and Ajeh, 2017).…”

“…The chosen factors and variables were based on the theoretical background, in which relevant papers emphasize the value of the stakeholder register (Miles, 2017;Mutua and Ibembe, 2020;PMI, 2017), the stakeholder engagement (Ackermann et al, 2014;Civera et al, 2019;Isike and Ajeh, 2017), the communication with stakeholders (Altameem, 2015;Krieger et al, 2020;Stock et al, 2021) and the number of stakeholders involved (Aaltonen and Kujala, 2016;Barrane et al, 2020) to increase the success probability. In addition, the literature draws attention to the negative risk incidence, the possible opportunities and the strategies to deal with changes on the project in order to enhance performance (South et al, 2018;Sperry and Jetter, 2019;Willumsen et al, 2019).…”

“…In line with the ideas of Thaler and Levin-Keitel (2016), the result reveals that the stakeholder register has an effect on the opportunity incidence by providing knowledge on stakeholders' requirements and capacities. The stakeholder engagement and the good team communication can enhance the project innovation and expand the market (Isike and Ajeh, 2017). The stakeholders can also contribute with partnerships, resources and even with the enterprise image by creating new opportunities (Aragon es-Beltr an et al, 2017).…”