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Theoretical and practical problems of enterprise management based on reconciliation of stakeholder interests

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Category: Economy and management

Last Updated on 09 May 2014

Published on 16 April 2013

Hits: 3640

Authors:

I.B. Oleksiv, Cand. Sci. (Econ.), Associate Professor, Lviv Polytechnic National University, Doctoral Student, Lviv, Ukraine

Abstract:

Purpose. Todevelop concept for agreement of enterprise stakeholder interest and to analyze the possibilities of using such concept in enterprise management.

Methodology. Comparison, analysis and synthesis methods were applied in the research. In order to develop concept of reconciliation of stakeholder interests method of generalization was applied.

Findings. As the result of literature of review in the article basic theories that can be applied for development of company management system were analyzed. In particular, the possibilities of application of agency theory, transaction cost theory and stakeholder theory for the development of company management system were analyzed in the article. Basing on pros and cons analysis of mentioned theories it was identified that application of agency theory and transaction theory is not effective for management system development due to the inability to provide the participation of all social and economic actors in decision-making process. Therefore basing on literature review the author proposed theoretical principles of Ukrainian company management based on the agreement of stakeholder interests.

Originality. The main result of the paper is combining of theoretical principles of Ukrainian company management based on the agreement of stakeholder interests into a concept. The developed concept forms the theoretical basis for important stakeholder selection, analysis of their interests, and application of methods directed at agreement of stakeholder interests and making managerial decisions considering stakeholder interests. The application of such concept in company management will contribute to company stakeholders’ interests reconciliation which will result into the decrease of company transaction costs, better access to the resources of contra agents and the improvement of company’s social responsibility.

Practical value. The results of the research can be used for the development of company management system based on the reconciliation of the stakeholder interests. 

References:

1. Ghoshal, S. (2005), “Bad management theories are destroying good management practices”, Academy of Management Learning & Education, no.1. pp. 75–91.

2. Keay, A. (2010), Stakeholder Theory in Corporate Law: Has it Got What It Takes?, University of Leeds, Leeds.

3. Саприкіна М. Діалог зі стейкхолдерами: міжнародні та українські реалії сьогодення / Саприкіна М. – К.: Центр „Розвиток КСВ“, 2010. – 20с.

Saprykina, M. (2010), “Dialogue with stakeholders: international and Ukrainian reality”, Centre for CSR, Kyiv, Ukraine.

4. Олексів І.Б. Сутність груп інтересів та механізми їхнього впливу на діяльність машинобудівного підприємства / І.Б. Олексів // Науковий вісник НЛТУ України. – 2010. – №20.7. – С.188–192.

Oleksiv, I.B.(2010), “The sense of interest groups and mechanisms of their influence on the activity of machine building enterprise”, Scientific Bulletin of NLTU of Ukraine, no.20.7, pp.188–192.

5. Кузьмін О.Є. Формування системи оцінювання діяльності підприємства із урахуванням інтересів груп економіко-управлінського впливу / О.Є. Кузьмін, І.Б. Олексів // Актуальні проблеми економіки. – 2011. – №2(116). – С.77–88.

Kuzmin, О.Ye. and Oleksiv, I.B. (2011), “Forming company performance measurement system considering stakeholder interests”, Aktualni problemy ekonomoky, no.2(116), pp.77–88.

6.   Олексів І.Б. Аналізування методів збалансування інтересів груп економіко-управлінського впливу підприємства при виході на зовнішній ринок / І.Б. Олексів // Науковий вісник Львівського національного університету ветеринарної медицини та біотехнології імені С.З. Гжицького. Серія „Економічні науки“. – 2011. – №1 Ч.2. – С.132–136.

Oleksiv, I.B.(2011), “Analysis of methods for enterprise stakeholder interest agreement while entering external market”, Scientific Bulletin of S. Gzhytskyy Lviv national university of veterinarian medicine and biotechnology, no.1 part2,pp.132–136.

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