Stakeholder engagement as a facilitator of organizational learning

Abstract

This paper examines the relationship between stakeholder engagement and competence building. Following the dual perspective of the firm, which indicated that managers deal with both transactions and competences concurrently, we argue that stakeholder interactions also concern both transaction cost reduction and value creation. Based on a review of the extant literature, we incorporated a micro-macro connection between organizational learning and competence building. Further to this, we developed a conceptual framework by linking stakeholder engagement and organizational learning. This framework demonstrates that stakeholder relations may have significant effects on organizational learning and thus stakeholder engagement can play the role of facilitator in building firm competences.