Big Decisions in Small Business Ecosystems:Stakeholder Priority

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avondale-bepress-to-dspace.facultyBusiness
avondale-bepress-to-dspace.licensehttp://creativecommons.org/licenses/by/4.0/
avondale-bepress-to-dspace.peer_review_statusPeer reviewed before publication
avondale-bepress.abstract<p>In an increasingly competitive environment,engaging with stakeholders is no longer an option but anecessity to ensure short-term and long-term success. This is particularly true in small business, yet little is known about how small business managers make those decisions, often under uncertainty and time pressure. Small businesses operate in networks of interdependent entities (ecosystems) where individuals are known to each other. This supports building of relationships, trust and reputation and removes the separation between ‘business’and ‘ethics’ by promoting a long-term focus. Yet, limited resources and conflicting demands result in a need to prioritise some stakeholder demands. As suggested by Stakeholder Salience, decision makers may prioritise stakeholder claims based on perceived levels of power, legitimacy and urgency. The key decision makers of nine Australian small businesses were asked about their relationships with important stakeholders, how decisions regarding the priority of various stakeholders and their expectations were made and what factors may affect such decisions. Relationships with stakeholders were identified as dynamic and strategic resources, interviewees invested considerable time and effort to build and maintain positive relationships. Consistent with Stakeholder Salience model, decisions were affected by perceptions of stakeholders’ level of power, legitimacy and urgency. This research also found that intuitive perceptions about the stakeholder affected the decision-making process, and identified the following additional factors: commitment, dependence and potential exit costs as well as the decision maker’s perception of alignment with own values, thereby introducing a moral and ethical consideration that would sometimes take priority over other considerations.</p>
avondale-bepress.articleid1018
avondale-bepress.authorsAnnika Westrenius
avondale-bepress.authorsLisa Barnes
avondale-bepress.context-key17970350
avondale-bepress.coverpage-urlhttps://research.avondale.edu.au/bit_papers/19
avondale-bepress.document-typearticle
avondale-bepress.field.author_faculty_disciplineBusiness
avondale-bepress.field.comments<p>Used by permission: the authors</p> <p>Copyright © 2020 by authors, all rights reserved</p>
avondale-bepress.field.custom_citation<p>Westrenius, A., & Barnes, L. (2020). Big decisions in small business ecosystems: Stakeholder priority. <em>Advances in Economics and Business, 8</em>(2), 73-84. doi:10.13189/aeb/2020.080201</p>
avondale-bepress.field.distribution_licensehttp://creativecommons.org/licenses/by/4.0/
avondale-bepress.field.embargo_date2020-06-03T00:00:00Z
avondale-bepress.field.field_of_education08 Management and Commerce
avondale-bepress.field.for150303 Corporate Governance and Stakeholder Engagement
avondale-bepress.field.issn2331-5075
avondale-bepress.field.issue_number2
avondale-bepress.field.journalAdvances in Economics and Business
avondale-bepress.field.page_numbers73-84
avondale-bepress.field.peer_reviewBefore publication
avondale-bepress.field.publication_date2020-02-01T00:00:00Z
avondale-bepress.field.reportable_itemsC1
avondale-bepress.field.research_centreChristian Education Research Centre
avondale-bepress.field.staff_classificationPermanent
avondale-bepress.field.volume_number8
avondale-bepress.fulltext-urlhttps://research.avondale.edu.au/cgi/viewcontent.cgi?article=1018&amp;context=bit_papers&amp;unstamped=1
avondale-bepress.keywordsStakeholder Salience
avondale-bepress.keywordsStakeholder Engagement
avondale-bepress.keywordsDecision Making
avondale-bepress.keywordsManagement
avondale-bepress.keywordsStrategic Management
avondale-bepress.keywordsEcosystem
avondale-bepress.keywordsBricolage
avondale-bepress.label19
avondale-bepress.publication-date2020-02-01T00:00:00Z
avondale-bepress.publication-titleBusiness Papers and Journal Articles
avondale-bepress.statepublished
avondale-bepress.submission-date2020-06-03T21:39:59Z
avondale-bepress.submission-pathbit_papers/19
avondale-bepress.titleBig Decisions in Small Business Ecosystems:Stakeholder Priority
avondale-bepress.typearticle
dc.contributor.authorBarnes, Lisa
dc.contributor.authorWestrenius, Annika
dc.date.accessioned2023-11-01T00:30:11Z
dc.date.available2023-11-01T00:30:11Z
dc.date.issued2020-02-01
dc.date.submitted2020-06-03T21:39:59Z
dc.description.abstract<p>In an increasingly competitive environment,engaging with stakeholders is no longer an option but anecessity to ensure short-term and long-term success. This is particularly true in small business, yet little is known about how small business managers make those decisions, often under uncertainty and time pressure. Small businesses operate in networks of interdependent entities (ecosystems) where individuals are known to each other. This supports building of relationships, trust and reputation and removes the separation between ‘business’and ‘ethics’ by promoting a long-term focus. Yet, limited resources and conflicting demands result in a need to prioritise some stakeholder demands. As suggested by Stakeholder Salience, decision makers may prioritise stakeholder claims based on perceived levels of power, legitimacy and urgency. The key decision makers of nine Australian small businesses were asked about their relationships with important stakeholders, how decisions regarding the priority of various stakeholders and their expectations were made and what factors may affect such decisions. Relationships with stakeholders were identified as dynamic and strategic resources, interviewees invested considerable time and effort to build and maintain positive relationships. Consistent with Stakeholder Salience model, decisions were affected by perceptions of stakeholders’ level of power, legitimacy and urgency. This research also found that intuitive perceptions about the stakeholder affected the decision-making process, and identified the following additional factors: commitment, dependence and potential exit costs as well as the decision maker’s perception of alignment with own values, thereby introducing a moral and ethical consideration that would sometimes take priority over other considerations.</p>
dc.description.versionBefore publication
dc.identifier.citation<p>Westrenius, A., & Barnes, L. (2020). Big decisions in small business ecosystems: Stakeholder priority. <em>Advances in Economics and Business, 8</em>(2), 73-84. doi:10.13189/aeb/2020.080201</p>
dc.identifier.issn2331-5075
dc.identifier.urihttps://research.avondale.edu.au/handle/123456789/17970350
dc.language.isoen_us
dc.rights<p>Used by permission: the authors</p> <p>Copyright © 2020 by authors, all rights reserved</p>
dc.rights.licensehttp://creativecommons.org/licenses/by/4.0/
dc.subjectStakeholder Salience
dc.subjectStakeholder Engagement
dc.subjectDecision Making
dc.subjectManagement
dc.subjectStrategic Management
dc.subjectEcosystem
dc.subjectBricolage
dc.titleBig Decisions in Small Business Ecosystems:Stakeholder Priority
dc.typeJournal Article
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