Stakeholder Management in the Wake of Business Failure

Omari, Dacosta; Jin, Cai

Abstract

This chapter examines the impact of business failure on stakeholder management relationships in future ventures. Stakeholder relationships and their importance to business are a critical concept in modern business theory. Stakeholders encompass a wide range of entities that can influence or be influenced by an organization. This inclusive definition challenges traditional economic assumptions by highlighting an organization’s responsibilities to various groups. Understanding stakeholder relationships is crucial for businesses, especially concerning the impact of business failure. Business failure can affect interactions with stakeholders and lead to stigma, but it may also offer valuable opportunities for learning and growth. This chapter suggests that entrepreneurs who effectively manage stakeholder relationships and learn from failure can ultimately benefit from business failure and experience positive effects in future ventures. The key implications include enhancing stakeholder awareness, managing stakeholder perceptions, embracing the grief recovery theory, prioritizing stakeholder relationships, and fostering mutual communication to achieve sustainable success.

Citation

Omari, D., & Jin, C. (2024). Stakeholder Management in the Wake of Business Failure. In S. Adomako, M. A. Gyensare, & M. Ahsan (Eds.), Stakeholder Management and Entrepreneurship in Africa (254-265). Routledge. https://doi.org/10.4324/9781003256014-22

• Online Publication Date: Jun 7, 2024
• Publication Date: Apr 4, 2024
• Deposit Date: Sep 16, 2024
• Publisher: Routledge
• Peer Reviewed: Peer Reviewed
• Pages: 254-265
• Edition: 1st ed.
• Book Title: Stakeholder Management and Entrepreneurship in Africa
• ISBN: 9781003256014
• DOI: https://doi.org/10.4324/9781003256014-22
• Public URL: https://durham-repository.worktribe.com/output/2865058