Firm-stakeholder connectedness in the deregulating electric utility business: Exchange relationships in a network context

This dissertation extends current research on firm-stakeholder relationships by proposing a stakeholder connectedness model in a network context involving the deregulating electric utility industry. Connectedness involves the degree to which firms and stakeholders form dependent-interdependent relationships in a network context.; First, this dissertation suggests that firm-stakeholder relationships are multilateral and multidirectional. Evolving business practices increasingly involve models in which firms and stakeholders are connected through complex dependent-interdependent exchange relationships. Depending on the type of exchange involved, these relationships often are multilateral and multidirectional, particularly in a network context.; Second, this dissertation presents a network-based model in which the degree of connectedness among firms and stakeholders are defined based on types of dependence-interdependence. Recognizing the social and economic nature of exchange among firms and stakeholders, this paper suggests that differing types of trust and control can effectively describe both dependence-interdependence and the degree of connectedness among firms and stakeholders.; Third, this dissertation suggests that, from the perspective of exchange relationships in a network environment, power-based relationships provide only a partial explanation of firm-stakeholder interaction. This dissertation conceptualizes power as a subset of dependent-interdependent relationships and one of several factors that influence connectedness among firms and stakeholders in a network.; The general proposition of this paper is that firms increasingly are interconnected through exchange relationships. Connectedness among firms and stakeholders in a network can be developed and maintained more effectively when based on long-term relationships. To support this proposition, models of differing types of firm-stakeholder connectedness are provided.; Through case study research of firms and stakeholder involved in all segments of the electric utility industry, the propositions are evaluated. The exploratory results suggest support for the propositions in this dissertation.