Processes of governance across multiple stakeholders: performance, control and innovation: an introduction

Citation

Smallman, C., Benn, S. and Teo, S.T.T. (2007), "Processes of governance across multiple stakeholders: performance, control and innovation: an introduction", Managerial Law, Vol. 49 No. 5/6. https://doi.org/10.1108/ml.2007.01049eaa.002

Processes of governance across multiple stakeholders: performance, control and innovation: an introduction

Processes of governance across multiple stakeholders: performance, control and innovation: an introduction

This special issue explores governance as process – a trend emerging in response to the need to control and coordinate inter-organizational forms around a shared purpose. The increasing prevalence of organizational forms such as inter–organizational networks, alliances and public–private partnerships is increasingly challenging the practice of governance to move away from a traditional focus on structure. Given the often temporary and highly flexible nature of these relationships, it is not likely that governance by compliance to government regulation is suitable, particularly as many of these arrangements involve multinational enterprises. As a result, governments, NGOs and community groups are developing process-based governance arrangements to control corporate activities that relate to specific social or environmental contexts or projects. A major benefit of such relationships can be the production of new knowledge. The question is how to design governance to ensure such an outcome?

The contributions in this special issue explore the challenges, benefits and limitations associated with implementing governance as processes, with a particular focus on the role of social forms of governance such as networks containing government and non-governmental organizations in enabling high performance. We draw from both case and survey-based research in developing economies.

In this issue, Suzanne Benn draws on case-based research on public–private partnerships and Community Consultative Committees to explore innovative forms of decision-making that can lead to a common understanding and agreement on what is, and what is not acceptable in terms of corporate standards. She explores the role of process-based governance in addressing the issue of power differences between stakeholders, a crucial factor in achieving positive outcomes from multiple stakeholder arrangements. Kate Joyner's case material focuses on the role of strategic leadership as a process of governance in public–private partnerships, arguing that flexibility and dealing with ambiguity are key factors for successful partnerships and alliances. Gabriel Eweje will explore the development issues associated with multinational oil companies' corporate social responsibility initiatives in Nigeria. His focus on governance process concerns the role of sceptical stakeholders in the producing communities about the long-term effect and the beneficiaries of the companies' CSR initiatives/community development initiatives. Finally, Clive Smallman moves from the more detailed case and survey-based research to an overall perspective on the research direction for governance as a process in order to deliver new knowledge outcomes. His argument is that governance as process can lead to the development of a deeper understanding of stakeholder knowledge, experience and skills.

Each of these pieces are based upon contributions to a Symposium held at the 2006 Annual Meeting of the Academy of Management, Atlanta GA, USA.

We are delighted to complement these papers with an article by Philip Lawton which explores the extent to which the legal experience of minority shareholder actions in Hong Kong supports the sociological model of the Chinese family firm as developed by Wong Su-lun and reports some preliminary findings for the period 1980-1995.

Acknowledgments

The Guest Editors are grateful for feedback received from colleagues who attended the Processes of Governance Across Multiple Stakeholders: Performance, Control and Innovation Symposium held at the 2006 Annual Meeting of the Academy of Management, Atlanta GA, USA. The Symposium was supported by the Profit Non-Profit, Social Issues in Management and Critical Management Studies Divisions of the Academy of Management. We thank our fellow authors for their contributions.

We also thank James Kirkbride and Geraint Howells for encouraging us to develop this special issue.

Clive Smallman, Suzanne Benn and Stephen T.T. TeoGuest Editors