


































Advances in Business Research 2010 Volume 1.pdf


176

Advances in Business Research

 !!"#$%&'(#) %*+) ,*-&$./#*&%0) 1&%2#3!0+#$) 4#&5!$2-6) 7)  %-#) 7*%08-'-) !9) :5!) ;$<%*)

4#'=3<!$3!!+-

Vanessa Hill, University of Louisiana, Lafayette

Steven Frankforter, Winthrop University

Drawing on scholarship from resource dependency, social network analysis, trust, and institutional theories, we 

present a model that describes the factors that shape relationships among organizations and their stakeholders. 

We propose that networks comprised by companies and their stakeholders can be primarily cooperative or 

opportunistic in character. The qualities of the organizations in the network as well as the relationships and structure 

of those relationships determine whether or not the resulting network can be characterized as cooperative or 

opportunistic. We illustrate the model by comparing and contrasting the stakeholder networks of two neighborhood  

development projects. 

 !" #$%"&%'()" *+,,+-.!/"0(%%1'!2)" 345678"/(+9!:;(%'<.!/"-+(<=" )#'<%$+,:%(" #$%+(&":%>%,+?%:" ('?.:,&="1'<.!/"

)./!.@A'!#" )#(.:%)" .!" +9(" 9!:%()#'!:.!/" +*" !+(1'#.>%" '!:" .!)#(91%!#'," 9)%)" +*" %#$.A)" .!" 1'!'/.!/" )#'<%$+,:%("

(%,'#.+!)" 3B+!%)=" 455CD"E9.!!"F" B+!%)=" 455C8G" H%)%'(A$" :9(.!/" #$.)" #.1%" )9//%)#%:" #$'#" A+1?%#.#.>%" ':>'!#'/%)"

may arise out of successfully recognizing stakeholder traits and adapting strategically to them (Jones, 1995; Wicks, 

I%(1'!="F"B+!%)="45558="'!:"A(%'#%"#&?+,+/.%)"#$'#":.)#.!/9.)$";%#-%%!")#'<%$+,:%()"?9()9.!/"+??+(#9!.)#.A"%!:)"

'!:"#$+)%")%%<.!/">',9%J;')%:"/+',)"3K.#A$%,,="L/,%="F"M++:="455ND"O$.,,.?)="45568G"P$%"?'A%"+*"':>'!A%1%!#".!"

stakeholder research has been remarkable, but in spite of these advances, considerable opportunity to further the 

power and usefulness of stakeholder theory remains. 

Q++?%('#.>%"'??(+'A$%)"#+")#'<%$+,:%(" #$%+(&"+(" #$+)%"#$'#"%>',9'#%"19,#.?,%"?%()?%A#.>%)"+*"@(1J)#'<%$+,:%("

relations are emerging. While prominent research in stakeholder theory has focused attention on examination of 

#$%".!)#(91%!#',").:%"+*")#'<%$+,:%("(%,'#.+!)$.?)"30(%%1'!="4567D"B+!%)="455CD"K.#A$%,,"%#"',G="455N8=".!>%)#./'#.+!"

of cooperative relationships are being explored as researchers investigate factors that encourage stakeholders to 

*+(1"',,.'!A%)"#+".!R9%!A%"+(/'!.S'#.+!)"3H+-,%&"F"K+,:+>%'!9="TUUVD"W%>.,,%"F"K%!/9A="TUUX8G"L!+#$%("*+A9)"

+*" )#'<%$+,:%(" (%)%'(A$"$')";%%!" #$%":%>%,+?1%!#"+*" #&?+,+/.%)" #+" .:%!#.*&"-$+"'"@(12)" )#'<%$+,:%()" '(%" '!:" #+"

:%#%(1.!%"#$%"#&?%)"+*".!R9%!A%)"#$'#"#$%&"$'>%"+>%("'"@(1"3K.#A$%,,"%#"',G="455ND"O$.,,.?)="4556="Y(.)A+,,"F"Z#'(.<="

TUU78G"M$.,%" #$%&" '(%" .1?+(#'!#" '>%!9%)" +*" (%)%'(A$=" A++?%('#.>%" '(('!/%1%!#)" '1+!/" )#'<%$+,:%()" ?(%)%!#" '!"

opportunity to advance our understanding of stakeholder relationships further. A network approach to studying 

stakeholder relations allows us to consider cooperation among stakeholders as well as opportunistic behavior. 

Social network analysis is a useful theoretical framework for further understanding the other constituents in 

society. The actors in the network are individual organizations. Each pair of actors in the network is potentially 

.!>+,>%:".!")+1%"#&?%"+*"(%,'#.+!)$.?"3K'(<+>)<&="M.,,%(="F"O'##+!="45668G"L"!%#-+(<"'??(+'A$"#+")#'<%$+,:%("#$%+(&"

.)"9,#.1'#%,&"';+9#"$+-"#$%";9).!%))":%>%,+?)"'!:"1'.!#'.!)"(%,'#.+!)$.?)"-.#$".#)")#'<%$+,:%()G"H+-,%&"3455N8"-')"

#$%"@()#"#+"1%,:"'"!%#-+(<"'??(+'A$"#+")#'<%$+,:%("#$%+(&=")9//%)#.!/"#$'#")#'<%$+,:%("#.%)"!%%:"#+";%"%>',9'#%:"+!"

more than a dyadic basis. He also argued that an organization’s stakeholders interact bilaterally. Stakeholders know 

of, and interact with one another. Some networks will be characterized by cooperative relationships, other networks 

by instrumental relationships. 

Organizations in cooperative networks have multilateral stakeholder relationships. Instead of positioning the 

organization as a member of a network that is solely instrumental thriving only in the short-term, the cooperative 

!%#-+(<".)"'">',9%J@,,%:"A+119!.#&"#$'#"1'&"?%(?%#9'#%".!:%@!.#%,&G"O'(#.A.?'!#"+(/'!.S'#.+!)"19)#"?(+1+#%"A9,#9(',"

>',9%)"#$'#"/.>%".#",+!/J#%(1":.(%A#.+!"'!:"?9(?+)%"*+("#$%"A++?%('#.>%"!%#-+(<"#+"%!:9(%G"M.#$")9A$"'!".:%+,+/.A',"@#="

contracting stakeholders may develop trust in one another. Eventually, the parties could reduce transaction costs that 

would otherwise be associated with an opportunistic approach - incentives and monitoring costs (Jones, 1995; Wicks 

%#"',G="45558G"P$%"(%)9,#".)"'"1+(%"%*@A.%!#"(%,'#.+!)$.?"#$'#"',,+-)"#$%"(%#%!#.+!"+*"/(%'#%(",%>%,)"+*"'>'.,';,%"(%)+9(A%)"

for maintaining unavoidable instrumental stakeholder relationships. While participants in the networks have dyads 

+*"%[A$'!/%="#$%(%"'(%"(%?%(A9)).+!)"*+("#$%"+#$%("!%#-+(<"1%1;%()"#$(+9/$"#('!).#.>.#&"3W%>.,,%"F"K%!/9A="TUUX8G"

Members in a cooperative network are either directly linked through each other or through a relationship that they 

$'>%".!"A+11+!"-.#$"'!+#$%("+(/'!.S'#.+!"3H+-,%&"F"K+,:+>%'!9="TUUV8G"\??+(#9!.)#.A";%$'>.+(".!")9A$"'"!%#-+(<"

not only damages the relationship with the stakeholder that is harmed, but any other networked stakeholder the 

2010, Vol. 1, No. 1, 176-187

Hill and Frankforter



177

Advances in Business Research

injured stakeholder interacts with. The creation of cooperative networks leads to investments embodying long-term 

commitments which cannot be achieved through remote ties that are based on immediate gain.

Instrumental networks on the other hand, are characterized by arm’s length transactional arrangements 

;%#-%%!",++)%,&"'*@,.'#%:"+??+(#9!.)#.A"?'(#.%)"3]SS.="455N8G"P$%"?(.1'(&"A$'('A#%(.)#.A)"+*"#$%"?'(#.A.?'!#)".!"#$.)"

'(('!/%1%!#"'(%^"(%1+#%"#('!)'A#.+!)="'!"%1?$').)"+!")%,*J.!#%(%)#="'!"';)%!A%"+*",+&',#&="'"*+A9)"+!"A+1?%#.#.+!"*+("

limited resources, and impersonal relationships. The potential competitive advantages of remote approaches are the 

';.,.#&"#+"('?.:,&")$.*#"#+"!%-"A+!:.#.+!)="+??+(#9!.#.%)="'!:"(%,'#.+!)$.?)"')"#$%&"%1%(/%"3]SS.="455N8G"L1+!/"#$%"

disadvantages of participating instrumental networks are transaction, monitoring, and inducement costs. Instrumental 

networks are characterized by remote or loosely joined, short-term relationships, among stakeholders who do not 

trust each other and who engage in">'(.+9)"#%A$!._9%)"#+"1+!.#+(";%$'>.+("+*"+#$%("'A#+()"#+"'>+.:"%[?,+.#'#.+!G

In this paper, we propose a synthesis of social network analysis with stakeholder theory. We present cooperative 

and instrumental stakeholder models based on actor characteristics, relationships, and position in a stakeholder 

network. Our model distinguishes between stakeholder networks that are primarily cooperative or opportunistic by 

$+-"#$%)%"!%#-+(<)">'(&"+!")#'<%$+,:%("'##(.;9#%)="#&?%)"+*"(%,'#.+!)$.?)="'!:"#$%")#(9A#9(',"_9',.#.%)"+*"#$%"!%#-+(<)G"

We illustrate the models with a case study of the redevelopment efforts of two urban neighborhoods. 

1&%2#3!0+#$)4#&5!$2-

This model describes when relationships among stakeholder groups are characterized by either cooperative 

+("+??+(#9!.)#.A"_9',.#.%)G"0+(" #$%")'<%"+*"A,'(.#&="-%".,,9)#('#%" #$%"1+:%,"A+!).:%(.!/"'"!%#-+(<"#$'#" .)"?(.1'(.,&"

A++?%('#.>%" 3I'((.+" `+/'!" (%?(%)%!#%:" .!" 0./9(%" 48=" '!:" '" !%#-+(<" #$'#" .)" ?(.1'(.,&" +??+(#9!.)#.A" 3H+[;9(&"

(%?(%)%!#%:".!"0./9(%"T8G" #".)"_9.#%"?+)).;,%"#$'#"A++?%('#.>%"!%#-+(<)"-.,,"$'>%"'A#+()"#$'#";%$'>%"+??+(#9!.)#.A',,&="

as well as actors in opportunistic networks that behave cooperatively. Our model describes the mechanisms that 

allow stakeholders to work together in each network situation.

>'=.$#)?6)@%$$'!)A!=%*)1&%2#3!0+#$)4#&5!$2

The nodes, represent the actors, or organizations, involved in the stakeholder network. The lines between the 

actors represent that a relationship exists between two organizations. The direction of the arrows illustrates the 

direction of the relationship. For example, in Figure 1, all of the relationships among actors in the network are bi-

directional. This means that each organization in the network has a relationship with every other organization in 

#$%"!%#-+(<G"0./9(%"T" .)"A$'('A#%(.S%:";&";+#$"9!.J:.(%A#.+!',"'!:";.J:.(%A#.+!'," (%,'#.+!)$.?)G"  !" #$.)"@/9(%=" #$%"

1'&+(2)"+*@A%".)"!+#%:"')"$'>.!/"'"(%,'#.+!)$.?"-.#$"A+119!.#&":%>%,+?1%!#=";9#"A+119!.#&":%>%,+?1%!#":+%)"!+#"

reciprocate this relationship. Finally the placement of the nodes in relation to each other represents a stakeholder’s 

position in the network relative to other actors. The distinction does not matter when considering Barrio Logan. 

Actors in this network are connected to each other in exactly the same way. However, in Roxbury we see that 

#$%"!%#-+(<".)"?'(#.#.+!%:".!#+"#-+"/(+9?)="-.#$"#$%"\>%().#%"Q+11.##%%="#$%"O(+a%A#"H%>.%-"Q+11.##%%="'!:"#$%"

2010, Vol. 1, No. 1, 176-187

Hill and Frankforter

City Planner

Sandag MTDB

Navy

Port

Property Owner

Community College

Social Service Agency Rep

Industry

Business

Caltrans

Developer

Arts Rep

Housing Rep

Community Rep

North of Evans

School

South of Evans

Homeowners

Environmental Rep
Project Area Rep



178

Advances in Business Research

H+[;9(&"W%./$;+($++:"Q+9!A.,"3HWQ8"')"?'(#)"+*";+#$"/(+9?)G"P$.)".)"(%?(%)%!#%:";&"#$%"!+:%)"*+("#$%)%"'A#+()"

being placed in the center of the network graph between two groups of actors. The placement of the nodes indicates 

that these actors may serve as intermediaries between groups. This discussion has used broad examples to illustrate 

the interpretation of the nodes, lines, and position of the lines. The nature of these relationships which provide the 

A+!#%[#"*+("#$%"!%#-+(<)".)":.)A9))%:"1+(%"%[#%!).>%,&".!")9;)%_9%!#")%A#.+!)G

>'=.$#)B6)C!D<.$8)1&%2#3!0+#$)4#&5!$2

1/%$&)E$!5&36)7*),00.-&$%&'!*)!9)1&%2#3!0+#$)4#&5!$2-

Smart Growth is an emerging paradigm and social movement in the discussion of urban development and 

redevelopment. Smart Growth emerged of a concern that key stakeholders were excluded from decisions and policy 

1'<.!/"(%/'(:.!/"A+119!.#&"%A+!+1.A":%>%,+?1%!#G"Q(.#._9%)"+*"#(':.#.+!',"'??(+'A$%)"#+"%A+!+1.A":%>%,+?1%!#"

charge that emphasis is put on creating a business friendly environment limited in its focus to creating favorable 

corporate tax and zoning policies. An imbalanced emphasis on creating business incentives resulted in harmful 

%[#%(!',.#.%)" '**%A#.!/" #$%" %!>.(+!1%!#=" ?9;,.A" $%',#$=" '!:" A+119!.#&" >.#',.#&" 3bOL=" TUU68G" P%!" Z1'(#" c(+-#$"

principles are widely accepted as benchmarks behavior for community development plans. Table 1 shows those ten 

principles. 

:%<0#)?6)1/%$&)E$!5&3)F$'*G'"0#-

Smart Growth is based on relationships among key stakeholder groups, which can be either cooperative or 

+??+(#9!.)#.AG"M%"%['1.!%"#$%":%>%,+?1%!#"+*"#-+"9(;'!"!%./$;+($++:)D"I'((.+"`+/'!".!"Z'!"Y.%/+"Q',.*+(!.'="'!:"

Roxbury, in Boston, Massachusetts. 

 !"#$#%&'()*$+,#-+.#%,'

Merchants

/!,+,.()*$+,#-+.#%,'

Human Services

0!#$12%*1%%3()*$+,#-+.#%,'

Community-at-Large

Community Development

Project Review Committee

Mayor

Corporations

Boston Redevelopment Authority

Oversite Committee

Roxbury Neighborhood Council

Principle 1 Mixed land uses 

Principle 2 Take advantage of compact building design 

Principle 3 Create a range of housing opportunities and choices 

Principle 4 Create walkable neighborhoods 

Principle 5 Foster distinctive attractive communities with a strong sense of place 

Principle 6 Preserve open space farmland natural beauty and critical environmental areas 

Principle 7 Strengthen and direct development towards existing communities 

Principle 8 Provide a variety of transportation choices 

Principle 9 Make development decisions predictable fair and cost effective 

Principle 10 Encourage community and stakeholder collaboration in development decisions 

2010, Vol. 1, No. 1, 176-187

Hill and Frankforter



179

Advances in Business Research

@%$$'!)A!=%*) %-#

Barrio Logan was recognized by the Environmental Protection Agency as a redevelopment project that 

:%1+!)#('#%:"Z1'(#"c(+-#$" ?(.!A.?,%)" 3bOL=" TUU68G"I'((.+"`+/'!2)" ,'(/%)#" A+!)#.#9%!A.%)" '(%" #$%" (%).:%!#)=" #$%"

U.S. Navy, and industry. The residents are primarily Latino and earn modest incomes. Barrio Logan’s proximity to 

the Port of San Diego attracted the interest of the U.S. Navy. In the 1940’s the U.S. Navy appropriated land to bring 

.!":%*%!)%".!:9)#(.%)="A$'!/.!/"I'((.+"`+/'!"#+"'!".!:9)#(.',"('#$%("#$'!"(%).:%!#.',"A+119!.#&G"P$%"Q.#&"+*"Z'!"

Diego supported this industrialization by passing mixed zoning laws that allow the Navy and business to develop 

residential areas. Business owners took advantage of the favorable zoning laws to build junkyards next to schools and 

(%).:%!A%)="#('!)*+(1.!/"#$%"!%./$;+($++:".!#+"'!".!:9)#(.',"('#$%("#$'!"(%).:%!#.',"A%!#%("3Y%,/':+="45568G"

 !R9%!A%:";&"#$%"Q.>.,"H./$#)"'!:"'/(.A9,#9(',"-+(<%()"1+>%1%!#)="I'((.+"`+/'!"(%).:%!#)"+(/'!.S%:"#+",+;;&"

for development plans and services to revitalize the community. The residents successfully petitioned the city of 

Z'!"Y.%/+" #+";9.,:"'"?'(<"9!:%(" #$%"Q+(+!':+"I'&"I(.:/%G"P$.)"-')" #$%"@()#" #.1%" #$'#" (%).:%!#)"$':" *+9/$#" *+("

)+1%#$.!/"'!:"-+!"3I'((.+"`+/'!".!"Z'!"Y.%/+="TUUU8G"d+-%>%(=")9;)%_9%!#"%>%!#)"%>%!#9',,&",%:"#+"#$%"A(%'#.+!"+*"

cooperative relationships among Barrio Logan’s stakeholder groups. 

 !"45X6"#$%"Q.#&"+*"Z'!"Y.%/+"%!#%()"#$%"K+:%,"Q.#.%)"O(+/('1G"b!#%(.!/"#$%"?(+/('1="#$%"A.#&"?%(*+(1%:"'!"

extensive study of Barrio Logan. Barrio Logan was designated as a redevelopment area and the residents were 

*+(1',,&"(%A+/!.S%:";&"#$%"A.#&"/+>%(!1%!#"')"'")#'<%$+,:%("/(+9?G" !"45N7"#$%"Q.#&"(%A+/!.S%:"#$%"Q+119!.#&"

Planning Association comprised of Barrio Logan property owners, businesses, small industry, and large industry 

stakeholders. This association contracted consultants who provided recommendations for the redevelopment of 

I'((.+"`+/'!G"P$.)"?,'!"-')"'!".1?+(#'!#"@()#")#%?".!"#$%":%>%,+?1%!#"+*"'"A++?%('#.>%")#'<%$+,:%("!%#-+(<G"0+("#$%"

@()#"#.1%"'"?,'!".!A,9:.!/".!?9#"*(+1"',,"<%&")#'<%$+,:%()"-')"?(+?+)%:"*+(".1?,%1%!#'#.+!G"P$%"?,'!"'(#.A9,'#%:"'"

set of guiding principles that the key stakeholders contributed to developing. This went a long way toward healing 

hard feelings, and developing trust resulting in the current realization of the Smart Growth principle of stakeholder 

.!A,9).+!G"Q+!)%_9%!#,&="-%"9)%"I'((.+"`+/'!2)"'??(+'A$"#+":%>%,+?1%!#"#+".,,9)#('#%"#$%"A++?%('#.>%")#'<%$+,:%("

!%#-+(<G"P';,%"T":%@!%)"#$%"<%&"'A#+()"(%?(%)%!#%:";&"#$%"!+:%)".!"#$%"!%#-+(<G

:%<0#)B6)H#8)7G&!$-)'*)&3#)@%$$'!)A!=%*)1&%2#3!0+#$)4#&5!$2

Roxbury Case

L#"@()#"/,'!A%=".#"-+9,:"'??%'("#$'#"Z1'(#"c(+-#$":%>%,+?1%!#"?(+a%A#)"-+9,:"*'>+("'"A++?%('#.>%")#'<%$+,:%("

!%#-+(<G"B%!!.!/)2"3TUU78"A')%")#9:&"+*"#$%"H+[;9(&"K')#%("O,'!"shows that adherence to Smart Growth principles 

%1?$').S.!/"?'(#.A.?'#.+!"+*"',,")#'<%$+,:%("/(+9?)".)"!+#"',-'&)"?'(#"+*"Z1'(#"c(+-#$".!.#.'#.>%)^"eL!+#$%("(%')+!"

#$'#"#$%"H+[;9(&"K')#%("O,'!".)".1?+(#'!#".!"#$%"@%,:"+*"9(;'!":%>%,+?1%!#".)"#$'#".#")%(>%)"')"'",%!)";&"-$.A$"#+"

A(.#._9%"?,'!!.!/"#$%+(.%)"#$'#"A',,"*+("A+119!.#&"?'(#.A.?'#.+!";9#"./!+(%")+A.',"'!:"A,'))"+;)#'A,%)"#+"?'(#.A.?'#+(&"

democracy at the local level. In fact Smart Growth and New Urbanism can be a cover for perpetuating structured 

.!%_9',.#.%)"'#"#$%",+A',",%>%,f"3B%!!.!/)="TUU7^"478G"

Actor Corresponding abbreviation 

Residential Property Owners Homeowners 

Residential Tenants North of Evans,  South of Evans 

Non-Residential Property Owners Property Owner 

Business Owners/Representatives Business 

Industrial Owners Industry 

Environmental Representative Environmental Rep 

Community Representative Community Rep 

Arts Representative Arts Rep 

Project Area Committee Representative Project Area Rep 

Housing Representative Housing Rep 

San Diego Unified School District School 

San Diego Unified Port District Port 

Center City Development Corp Developer 

United States Navy Navy 

Southeaster San Diego Planning Committee City Planner 

San Diego Association of Governments/Metropolitan Transit Development Board Sandag MTDB 

California Department of Transportation Caltrans 

San Diego Community College District Community College 

2010, Vol. 1, No. 1, 176-187

Hill and Frankforter



180

Advances in Business Research

Roxbury is one of seventeen neighborhoods in Boston. It is predominantly black neighborhood located in close 

proximity to downtown and is characterized by a high concentration of poverty. The neighborhood reports the highest 

proportion of families living on public assistance in Massachusetts. This is in stark contrast to redevelopment efforts 

that focus on building luxury homes to attract high income professionals, escalating property taxes that push current 

 !"#$%&'(!)#%$#*&+#',*%!-,%!.%,/#&$%/!)#*%01#''&'2*3%455678%9):  %;-*&'#**#*%&'%,/#%'#&2/;!$/!!+%: *!%*,$-22 #3%:*%

,/#<%:$#% #**%:; #%,!%:..!$+%/&2/#$% #:*#*%.!$%,/#&$%$#,:& ="!$>%*?:(#8%@*%&'%,/#%(:*#%!.%A:$$&!%B!2:'3%,/#%$#*&+#',*%!.%

C!D;-$<%/:+% &,, #%?! &,&(: %&'E-#'(#%:*%,/#<%:$#%?!!$ <%$#?$#*#',#+%:)!'2%# #(,#+%!.F(&: *%&'%?$!?!$,&!'%,!%,/#&$%

?!?- :,&!'%01#''&'2*3%455678%B&>#%A:$$&!%B!2:'3%,/#%$#*&+#',*%!.%C!D;-$<%!$2:'&G#+%:'+% !;;&#+%.!$%?:$,&(&?:,&!'%&'%

the planning process for the redevelopment of Roxbury. Unlike Barrio Logan, recognition of Roxbury residents as a 

stakeholder constituency is involuntary and as a result of contractual obligations. The Roxbury development process 

&*%(/:$:(,#$&G#+%;<%+&*,$-*,%:'+% &)&,#+%?:$,&(&?:,&!'%;<%>#<%*,:>#/! +#$*%01#''&'2*3%455678%9,:>#/! +#$%$# :,&!'*/&?*%

:$#%):':2#+%;<%$- #*%:'+% :<#$*%!.%!H#$*&2/,%0C!D;-$<%9,$:,#2&(%I:*,#$%J :'3%455K78%L/-*3%,/#%C!D;-$<%? :''&'2%

?$!(#**%:*%:'%&  -*,$:,&H#%!.%:'%&'*,$-)#',: =!$%!??!$,-'&*,&(%'#,"!$>8%L:; #%M%+#F'#*%,/#%>#<%:(,!$*%#);!+&#+%;<%,/#%

'!+#*%&'%,/#%'#,"!$>%0:*%*/!"'%&'%N&2-$#%O78

 !"#$%&'%($)%*+,-./%01%,2$%3-4"5.)%6,!7$2-#8$.%9$,:-.7

9$,:-.7%*+,-.%;5!#0,0$/

% P#% ?$!?!*#% ,/:,% H:$&:,&!'% !'% ,"!% '#,"!$>% :(,!$% Q-: &,&#*% +#*($&;#% ,/#% )#);#$*% !.% (!!?#$:,&H#% :'+%

opportunistic stakeholder networks. First, legitimacy motivates stakeholders to forge and maintain relationships with 

other members of a stakeholder network. Second, reputation is perceptual and is attributed to organizations the 

stakeholders interact with. Legitimacy and reputation are important because they encourage relationships to develop 

and endure among network actors. 

B#2&,&):(<R%Legitimacy is an important consideration in any relationship between organizations and stakeholders. 

I:-$#$%0OSTORMUO7%+#F'#+% #2&,&):(<%:*%V,/#%?$!(#**%"/#$#;<%:'%!$2:'&G:,&!'%W-*,&F#*%,!%:%?##$%!$%*-?#$!$+&':,#%

system its right to exist.” Legitimacy is essential to an organization’s survival because stakeholders are most likely 

,!%*-?? <%$#*!-$(#*%,!%!$2:'&G:,&!'*3%"/!*#%H: -#*%:$#%(!'2$-#',%"&,/%,/#&$%!"'%0J:$*!'*3%OSU57%!$%"/&(/%.- F  %:'%

&)?!$,:',%&'*,$-)#',: %'##+%0J.#..#$%X%9: :'(&>3%OSTK78

9-(/):'3% 0OSSY7% +&*,&'2-&*/#*% ;#,"##'% ,"!% ,<?#*% !.% !$2:'&G:,&!': %  #2&,&):(<Z% &'*,&,-,&!': % :'+% *,$:,#2&(8%

['*,&,-,&!': % #2&,&):(<%&*%:%*#,%!.%(!'*,&,-,&H#%;# &#.*3%(- ,-$: %+#F'&,&!'*%,/:,%+#,#$)&'#%/!"%,/#%!$2:'&G:,&!'%"&  %

act. Institutional legitimacy is an essential component of the cooperative network. This form of legitimacy helps to 

assure the participating stakeholders that the cooperative network has an existence that extends beyond the attainment 

of any particular task. Strategic legitimacy is accomplished partly through the organization’s espousing goals that 

:$#%(!'*&*,#',%"&,/%2-&+&'2%?$&'(&? #*%:'+%?:$, <%,/$!-2/%&,*%!"'%H: -#%*<*,#)%0J.#..#$%X%9: :'(&>3%OSTK78%9,$:,#2&(%

legitimacy is externally focused as an operating resource to attain some desired outcome. In this respect, strategic 

 #2&,&):(<% &*% ?-$?!*&H#3% (: (- :,#+% :'+% .$#Q-#', <% !??!*&,&!': 8% ['% ,/&*%  &2/,3% H: -#% *&)& :$&,<% ;#,"##'% ,/#% .!(: %

organization and stakeholders is not very important because the relationships are inherently low-trust and remote. 

Accordingly, parties protect their interests through contracts, monitoring and the pursuit of legal remedies. 

\!'*&+#$&'2%A:$$&!%B!2:'3% ,/#%H: -#%(!'2$-#'(<%'#(#**:$<% .!$% &'*,&,-,&!': %  #2&,&):(<% &*%#*,:; &*/#+% ,/$!-2/%

*#H#$: %)#(/:'&*)*8%N&$*, <3%(!))!'%H: -#*%.!$%,/#%A:$$&!%B!2:'%?$!W#(,%#):':,#+%,/$!-2/%,/#%OSUK%I!+# %\&,&#*%

J$!2$:)%"/&(/%!H#$%,/#%<#:$*%#H! H#+%&',!%,/#%\&,<%!.%9:'%]&#2! *̂%_#'#$: %J :'8%P/& #%#H#$<%'#&2/;!$/!!+%/:*%,/#%

E#D&;& &,<% ,!% &+#',&.<%:'+%+#F'#%:%+#H# !?)#',%? :'%,!%:++$#**% ,/#%-'&Q-#%(!'(#$'*%!.%#:(/%'#&2/;!$/!!+3%#H#$<%

'#&2/;!$/!!+% +#H# !?)#',% ?$!W#(,% &'% 9:'% ]&#2!% &*% 2-&+#+% ;<% ,/#% 9,$:,#2&(% N$:)#"!$>% \!$#% :̀ -#*% +#F'#+% &'%

Actors Corresponding abbreviation  

Boston Redevelopment Authority Boston Redevelopment Authority 

Mayor Mayor 

Oversite Committee Oversite Committee 

Project Review Committee Project Review Committee 

Roxbury Neighborhood Council Roxbury Neighborhood Council 

Merchant Association Merchants 

Tenant Organizations Tenants 

Religious Organizations Religious Organizations 

Human Service Organizations Human Services 

Neighborhood Organizations Neighborhood Organizations 

Corporations Corporations 

2010, Vol. 1, No. 1, 176-187

Hill and Frankforter



181

Advances in Business Research

9:'%]&#2! *̂%2#'#$: %? :'8%9#(!'+ <3%*,:,#% :"%$#Q-&$#*%,/:,%:  %(&,&#*%&'%\: &.!$'&:%:+!?,%:%2#'#$: %plan to guide its 

future development. Finally, value congruency among key stakeholders in Barrio Logan was further strengthened 

;<% ,/#%#*,:; &*/)#',%!.%:%\!))-'&,<%J :''&'2%@**!(&:,&!'% &'%OST68%L/#%\!))-'&,<%J :''&'2%@**!(&:,&!'%"/!%

created the development plan for Barrio Logan represents a broad cross section of residents and businesses in Barrio 

Logan. These stakeholders commissioned studies that were used to inform the development plan adopted in 1978. 

\!'*#Q-#', <3% ,/#%>#<%*,:>#/! +#$%2$!-?*%"#$#% &'H! H#+% &'%+#F'&'2% ,/#%2!: *%:'+%?$&'(&? #*%:**!(&:,#+%"&,/% ,/#%

current plan. Key stakeholders in Barrio Logan community planning network perceive that key stakeholders have 

the same goals and principles.

The key stakeholders in the Roxbury network are united by common strategic goals, to redevelop the neighborhood 

providing housing and business opportunities. However, the criteria for success among key stakeholders varied 

*&2'&F(:', <8% A:*#+% !'% ?:*,% /&*,!$<3% ,/#% $#*&+#',*% !.% C!D;-$<% ;# &#H#+% ,/:,% (&,<% 2!H#$')#',% :'+%  :$2#% ;-*&'#**%

&',#$#*,*%+#*&$#+%,!%+&*? :(#%,/#)%,!%:(Q-&$#%(/#:?% :'+%?$!D&):  <% !(:,#+%,!%+!"',!"'8%L/#%(&,<%2!H#$')#',%:'+%

large businesses worked together to create policies that addressed their interests to the exclusion of residents. Mixed 

zoning laws encouraged apartment conversions to condominiums and construction of expensive homes. The residents 

of Roxbury were interested in redevelopment; however, they wanted plans that emphasized affordable housing, 

building public schools, improved transportation, and economic development. This is an example of stakeholders 

having the same strategic goal, redevelopment, but different interpretations and values regarding its attainment.

J$!?!*&,&!'%OR%@(,!$*%&'%(!!?#$:,&H#%'#,"!$>*%"&  %,#'+%,!%#D/&;&,%&'*,&,-,&!': %.!$)*%!.% #2&,&):(<%,!%!,/#$%:(,!$*%

in their stakeholder network while actors in instrumental networks will tend to exhibit strategic forms of legitimacy 

to other actors in their stakeholder network. 

C#?-,:,&!'R%Reputation is not an attribute, but a perception of the focal organization by other stakeholders in the 

'#,"!$>8%C#?-,:,&!'%&*%+#$&H#+%.$!)%&'.!$):,&!'%:((#**#+%,/$!-2/%!,/#$%$# :,&!'*/&?*8%C#?-,:,&!'%&*%+#F'#+%:*%,/#%

summation of other actor’s perceptions and beliefs about the characteristics and behaviors of the focal organization 

0a'!>#3%OSSK78%C#?-,:,&!'%&*%,/#!$#,&(:  <%&)?!$,:',%,!%:%*,:>#/! +#$%'#,"!$>%;#(:-*#%&,%?$!H&+#*%&'.!$):,&!'%:;!-,%

a potential stakeholder partner in lieu of actual past experience with that organization. On an organizational level, 

$#?-,:,&!'%#'/:'(#*%,/#%2!!+"&  %!.%!,/#$%!$2:'&G:,&!'*%,!":$+%,/#%.!(: %!$2:'&G:,&!'%&'%$!-2/%,&)#*8%B:$*#'%0OSS47%

!;*#$H#+% ,/#% "&  &'2'#**% !.% !,/#$% !$2:'&G:,&!'*% ,!% :**&*,% :% ;-*&'#**% "/!*#% ?$!?#$,<% ":*% +#*,$!<#+% ;<% F$#8% L/#%

business’ reputation assured the assisting organizations it would not be opportunistic, and would someday be in a 

position to reciprocate the favor. Without past experience to go on, organizations in this network used reputation to 

predict risk associated with assisting the ailing focal organization.

C#?-,:,&!'%/:*%)- ,&? #%+&)#'*&!'*8%@((!$+&'2%,!%a'!>#%0OSSK7%$#?-,:,&!'%(:'%;#%,/!-2/,%!.%&'%,#$)*%!.%&'E-#'(#3%

the extent to which the actor is perceived as having the ability to get things done or to shape outcomes. Reputation 

can also be conceptualized as the degree of ethical behavior exhibited by the organization during interaction with 

!,/#$*%&'%,/#%'#,"!$>8%L/-*3%$#?-,:,&!'%&*%:%*-$$!2:,#%.!$%Q-: &,<%(!',$! 8%['%,#$)*%!.%#H: -:,&'2%?$!*?#(,*%.!$%'#"%

membership, reputation is an effective screen for inappropriate members.

For actors within Barrio Logan and Roxbury stakeholder networks, past experience and sullied reputations were 

obstacles to overcome. Actors in the Barrio Logan stakeholder network came to an understanding that cooperation 

":*%,!%#H#$<!'# *̂%;#'#F,8%P/#'%&,%":*%:((#?,#+%,/:,%,/#%#D( -*&!'%:'+%)&*,$#:,)#',%!.%>#<%*,:>#/! +#$*%$#*- ,#+%

in failed redevelopment, it led to a revised governance which was transparent, representative, and inclusive (Barrio 

B!2:'%b:$;!$%O5OR%\!))-'&,<%J :'3%OSTK78%L/&*%&*%'!,%)#:',%,!%&)? <%:%-,!?&:8%]&*:2$##)#',%$#2:$+&'2%?$&!$&,&#*%

and implementation still existed. However, unlike before, the disagreements were acknowledged and documented 

even if they are not acted on, maintaining the voice and contribution of all stakeholders. These norms enhance good 

reputations of actors in this network.

Instead of repairing reputations, actors in the Roxbury stakeholder network accepted poor reputations as an 

unavoidable reality. Interactions among actors in this stakeholder network were mediated by rules and procedures to 

keep other actors at arm’s length so that unethical treatment persisted. Past injuries and injustices were not reconciled. 

Instead, stakeholders remained vigilant, informed by the reputations of other stakeholder network actors. 

J$!?!*&,&!'%4R%@(,!$*% &'% (!!?#$:,&H#%'#,"!$>*%"&  % ,#'+% ,!% :,,$&;-,#% 2!!+% $#?-,:,&!'*% ,!% !,/#$% :(,!$*% &'% ,/#&$%

stakeholder network while actors in instrumental networks will tend to attribute poor reputations to other actors in 

their stakeholder network. 

3$#!,0-1/20</%*=-1>%9$,:-.7%*+,-./

\!!?#$:,&H#% :'+% &'*,$-)#',: % *,:>#/! +#$% '#,"!$>*% H:$<% &'% ,$-*,% :'+% ?!"#$% $# :,&!'*/&?*8% C# :,&!'*/&?*% :)!'2%

*,:>#/! +#$%'#,"!$>%)#);#$*%"&  %&'E-#'(#%,/#%):''#$%&'%"/&(/%:'<%*&'2 #%!$2:'&G:,&!'%.-'(,&!'*%&'%,/#%'#,"!$>8%L/#%

':,-$#%!.%,/#%$# :,&!'*/&?*%&'E-#'(#*%,/#%.$#Q-#'(<%:'+%,/#%Q-: &,<%!.%&',#$:(,&!'*%;#,"##'%:(,!$*%&'%:%*,:>#/! +#$%'#,"!$>8%

2010, Vol. 1, No. 1, 176-187

Hill and Frankforter



182

Advances in Business Research

L$-*,R% Organizations must be careful to avoid relationships that will leave it vulnerable to opportunistic 

behavior. Trust determines how stakeholder network members will respond to mitigate the risk involved in exposing 

vulnerabilities in the process of interacting with other stakeholder network members. We enter this discussion 

;<%:(>'!" #+2&'2% ,/:,% ,/#%+#F'&,&!'%:'+%(!'(#?,-: &G:,&!'%!.% ,/#% ,$-*,% (!'*,$-(,%/:*%;##'%:'%# -*&H#% ,:*>% 0_&  3%

A!&#*3%N&'#2:'3%X%I(c:  <3%455YZ%I:<#$3%]:H&*3%X%9(/!!$):'3%OSSY78%L/#$#.!$#3%"#%;#2&'%,/#%#D:)&':,&!'%!.%,/#%

&'E-#'(#%!.%,$-*,%$# :,&!'*/&?*%&'%(!!?#$:,&H#%:'+%&'*,$-)#',: %*,:>#/! +#$%'#,"!$>*%;<%+#F'&'2%,/#%,$-*,%(!'(#?,%

and identifying the components of trust that are relevant to our model. 

['%!-$%)!+# 3%"#%-*#%I:<#$%#,%: 8%0OSSYRTO47%+#F'&,&!'%!.%,$-*,%:*R%Vd,/#%"&  &'2'#**%!.%:%?:$,<%,!%;#%H- '#$:; #%

to another party based on the expectation that the other will perform a particular action important to the trustor 

&$$#*?#(,&H#%!.%,/#%:;& &,<%,!%)!'&,!$%!$%(!',$! %,/#%!,/#$%?:$,<8e%L/&*%+#F'&,&!'%:  !"*%-*%,!%.!(-*%!'%,/#%$# :,&!': %

:*?#(,*%!.%,$-*,%*#?:$:,#%.$!)%,/#%(!'(#?,%:*%:%Q-: &,:,&H#%:,,$&;-,&!'8%@((!$+&'2 <%,/#%:,,$&;-,#*%!.%:;& &,<3%;#'#H! #'(#3%

and integrity increase the likelihood of trust. However Mayer and his colleagues very clearly point out that these 

attributes do not constitute trust. The behavioral manifestation of trust is the assumption of risk. 

Factors that promote trust facilitate the behavioral manifestation of trust realized in risk-taking behavior. In 

*&,-:,&!'*%(/:$:(,#$&G#+%;<%,$-*,3%,/#$#%&*%:%/&2/% #H# %!.%(!'F+#'(#%,/:,%,/#%!,/#$%?:$,<%&'H! H#+%"&  %;#/:H#%&'%:%

(!!?#$:,&H#%):''#$8%L/#%:**-)?,&!'%!.% $&*>% &*%#:*&#$% &'% ,/&*%*&,-:,&!'8%\!'H#$*# <3% &'%*&,-:,&!'*%(/:$:(,#$&G#+%;<%

+&*,$-*,3%,/#$#%&*%:%/&2/% #H# %!.%(!'F+#'(#%,/:,%,/#%!,/#$%?:$,<%"&  %;#/:H#%!??!$,-'&*,&(:  <3%#D? !&,&'2%H- '#$:;& &,&#*%

,!%!'# *̂%+&*:+H:',:2#%0B#"&(>&3%I(@  &*,#$3%X%A&#*3%OSSK78%L$-*,%?$!H&+#*%,/#%2 -#%,/:,%/! +*%$# :,&!'*/&?*%,!2#,/#$%

in cooperative stakeholder networks. High levels of trust are demonstrated by stakeholder network members making 

themselves vulnerable to other members. This results in an absence of contracts and other monitoring processes. In 

instrumental stakeholder networks, low levels of trust necessitate interactions that function with the use of contracts 

and monitoring. 

\!)?:$&'2%:'+%(!',$:*,&'2%,/#%2!H#$':'(#%*,$-(,-$#%!.%,/#%A:$$&!%B!2:'%:'+%,/#%C!D;-$<%*,:>#/! +#$%'#,"!$>*%

&  -*,$:,#*%,/#%&)?:(,%!.%,$-*,%!'%$# :,&!'*/&?*%:)!'2%*,:>#/! +#$%:(,!$*8%A:$$&!%B!2:' *̂%\!))-'&,<%J :'%&*%2!H#$'#+%

;<% :% 9,:>#/! +#$% \!))&,,##8% L/#% *,:>#/! +#$% (!))&,,##% (!'*&*,*% !.% 4Y% H!,&'2% )#);#$*% :'+% #&2/,% '!'fH!,&'2%

)#);#$*% $#?$#*#',&'2%FH#% *,:>#/! +#$% 2$!-?*8%L/#% 4Y% H!,&'2%)#);#$*% :$#% (/!*#'% ;<% :% ?!?- :$% H!,#8%gH#$<!'#%

eligible to vote is eligible to run for a seat on the stakeholder committee. The eight non-voting members are appointed 

to the committee by their organization. Leadership and representation is accessible to all stakeholders involved in 

Barrio Logan. The process is simple, easy to understand, and few rules. The high level of trust that this process of 

popular vote indicates is represented by lines linking every actor of the Barrio Logan stakeholder network to each 

other in Figure 1. 

There are risks involved with this approach to governance. If there is an imbalance of power, or unethical 

behavior, the integrity of the popular vote could be compromised. This could result in electing committee members 

that represent the interest of other stakeholder groups to the detriment of others. In order for this process to work, 

actors in the network have to be willing to take a risk and a leap of faith trusting that other actors will support the 

process, participating in good faith and acting with integrity. 

@ ,#$':,&H# <3%*,:>#/! +#$%'#,"!$>*%,/:,%:$#%(/:$:(,#$&G#+%;<% !"% #H# *%!.%,$-*,%$#Q-&$#%.!$): &G#+%?$!(#**#*%:'+%

oversight structures to facilitate actor’s willingness to interact with others in the network. Roxbury’s governance 

structure and selection of representatives is more complex than Barrio Logan’s. Residents of Roxbury are less willing 

to be vulnerable to other stakeholders in their network. Many community residents, however, believed that while 

 !.,<3% ,/#% &+#: %? :''&'2%(!'(#?,*%+&+%'!,%:'*"#$% &?*!% .:(,!3% ,"!%;:*&(%Q-#*,&!'*% .:(&'2%C!D;-$<% $#*&+#',*R%P/!%

"!- +%;#'#F,h%@'+%"/!%"!- +%(!',$! %+#(&*&!'%):>&'2%$#2:$+&'2%,/#%:?? &(:,&!'%!.%,/#*#%&+#:*8

2010, Vol. 1, No. 1, 176-187

Hill and Frankforter



183

Advances in Business Research

?0>5.$%&'%?-.=!,0-1%@.-+$//%A-.%3-4"5.)%B!/,$.%@#!1%CD$./0>2,%E-==0,,$$

Instead of a popular vote, various groups are asked to nominate candidates. These candidates are then screened 

by the neighborhood council. The neighborhood council advances 30 or more nominations to the mayor. The mayor 

appoints 15 members and a chair. From individual to committee there are three degrees of separation. In the Barrio 

Logan process, members of the community vote for representatives on the stakeholder committee directly. According 

,!%1#''&'2*%045567%,/#%?$!,!(! %.!$%,/&*%?$!(#**%":*%/:$+%.!-2/,8%L/#%):<!$%:'+% !(: %2!H#$')#',%"#$#%:((-*,!)#+%

to appointing their candidates to leadership positions in the planning process. A formalized structure like the one 

described was an attempt to ensure that the composition of the oversight committee represented the broadest cross-

section of affected stakeholders as much as possible. High levels of distrust among actors in the Roxbury stakeholder 

network made these procedures necessary to ensure cooperation. The lines drawn among actors in Figure 2 represent 

both trust and power relationships. The position of the actors is important to note here. While in the Barrio Logan 

network actors are drawn in a circle and are connected to each other, in the Roxbury stakeholder network, the 

proximity of actors to each other indicate the level of trust and the relative power of the organizations. The pockets of 

trust are indicated by the pockets of actors on opposing sides of the network. The voting procedures seem to indicate 

that members of groups1 and 2 would be inclined to trust each other and trust the oversight committee, the project 

$#H&#"%(!))&,,##%:'+%,/#%Cc\8%i'%,/#%!,/#$%/:'+%,/#%A!*,!'%C#+#H# !?)#',%@-,/!$&,<3%\!$?!$:,&!'*3%:'+%,/#% !(: %

2!H#$')#',% ,/$!-2/%,/#%):<!$ *̂%!.F(#%"!- +% ,$-*,%#:(/%!,/#$%:'+% ,/#%iH#$*&2/,%\!))&,,##3% ,/#%J$!W#(,%C#H&#"%

(!))&,,##%:'+%,/#%Cc\8%%

Trust is essential for stakeholders to maintain their position in a cooperative network. Absent trust, stakeholder 

cooperation in any context will be short-lived and transitory. Trust connects actors together in a cooperative network, 

while resource dependence is essential to the instrumental network. 

J$!?!*&,&!'%MR%b&2/% #H# *%!.%,$-*,%"&  %,#'+%,!%;#%#D/&;&,#+%&'%(!!?#$:,&H#%*,:>#/! +#$%'#,"!$>*%:'+% !"%,$-*,%"&  %

tend to be exhibited in instrumental stakeholder networks. 

J!"#$R% %J!+! '<%X%J:2#% 0OSSK7% *-22#*,% ,/:,% ,/#%?$&):$<% $#:*!'%!$2:'&G:,&!'*%)-*,% #',#$% &',!%:  &:'(#*% &*% ,!%

:(Q-&$#%:((#**%,!%:%$#*!-$(#%,/:,%&*%#**#',&: %,!%&,*%*-((#**8%A:*#+%!'%$#*!-$(#%+#?#'+#'(#%,/#!$<%0J.#..#$%X%9: :'(&>3%

OSTK73%?!"#$% &'% ,/#%(!',#D,%!.% ,/#% *,:>#/! +#$%'#,"!$>% &*%+#,#$)&'#+%;<% ,/#%#D,#',% ,!%"/&(/%:'%:(,!$% (!',$! *% :%

resource that other actors’ desire or need. Powerful stakeholders can set the terms of the relationship with other 

*,:>#/! +#$*8%L/#<%:$#% :; #% ,!%+#F'#%:2#'+:*% :'+% *#,%?$&!$&,&#*% ,!% :++$#**% ,/#&$%'##+*% :'+%(!'(#$'*8%L$:+&,&!': %

approaches to economic and community growth emerged from networks where power is concentrated or centralized 

among a few stakeholders. These approaches to economic development focused on the concerns of large business and 

industrial stakeholders to control labor costs, provide tax breaks and subsidies and to de-regulate. Local governments 

in doing so act on a belief that the large and industrial business sector possesses the resources (job creation, tax 

$#H#'-#3%&'H#*,)#',7%,/:,%):>#%-$;:'%(#',#$*%,/$&H#%01#''&'2*3%455678%]#*?&,#%2!H#$':'(#%?$!(#**#*%,/:,%*##>%,!%;#%

inclusive, power in Roxbury’s stakeholder network is still concentrated in the local government who gets to make 

,/#% F': % *# #(,&!'% !.% )#);#$*% ,!% *#$H#% !'% ,/#% !H#$*&2/,% (!))&,,##8% J!"#$% (!'(#',$:,&!'% &*% (/:$:(,#$&*,&(% !.% :'%

instrumental stakeholder network. 

 

 

 

 

 

 

 

 
From The Roxbury Strategic Master Plan: Building a 21st Century Community 

Group 1 

Tenant Organizations 

Merchant Associations 
Neighborhood Associations 

Religious Organizations 
Human Service Organizations 

Community Development Corporations Corporate 

Group 2 

Community at large and other stakeholders 

Unlimited Nominations At least 2 nominations from each category 

Roxbury Neighborhood Council (RNC) & Elected Officials 

At least 30 Nominations 

Mayor Appoints 15 Members and Chair 

Roxbury Strategic Plan Oversight Committee 

2010, Vol. 1, No. 1, 176-187

Hill and Frankforter



184

Advances in Business Research

The Smart Growth paradigm seeks to diffuse power among network actors. Planners for the Barrio Logan Project 

recognized that centralization of decision making to the exclusion of other stakeholder groups resulted in failed 

attempts at redevelopment. In the community plan, planners state that the concentration of decision making to a few 

key stakeholders resulted in “…a lack of coordination between key government agencies that often work at cross-

 !" #$%$&'()*#"(*)'%+%",-.(*)'#!-$(/%'#0'-.%("'-%""(-#"(12'2(3(-$4'561""(#'7#)1*'81"9#"':;:<'=#33!*(-,'>21*&':?@A<'

?BC'>1$-'01(2!"%$'3#-(+1-%/'-.%'/%D%*-"12(E1-(#*'#0' #F%"'(*'-F#'$()*(GD1*-'F1,$C'H.%'G"$-<'1*'1--%3 -'F#!2/'9%'31/%'

-#')(+%'+#(D%'-#'122'100%D-%/'$-1I%.#2/%"')"#! $'(*' 21**(*)'/%D($(#*$C'H.%'$%D#*/<'"% "%$%*-1-(#*'#*'-.%'$-1I%.#2/%"'

committee represented the proportion of that constituency in Barrio Logan. For example, Barrio Logan residents had 

-.%'3#$-'+#-(*)'3%39%"$'#*'-.%'J-1I%.#2/%"'=#33(--%%'0#22#F%/'9,'K#*L>"#G-$'1*/'=#33!*(-,'M")1*(E1-(#*$&'

1*/'6!$(*%$$'1*/'N*/!$-",&'F(-.'K#*LO%$(/%*-'>"# %"-,'MF*%"$'.1+(*)'-.%'0%F%$-'+#-%$'561""(#'7#)1*'=#33!*(-,'

>21*'P /1-%&'Q;;?BC'N*'-.($'31**%"&'-.%'(*R!%*D%'(*'/%D($(#*$'F1$'*#-' "(31"(2,'/%D(/%/'9,'-.%'13#!*-'#0'31-%"(12'

resources that a stakeholder could bring to the table. The decentralization of power in the Barrio Logan Stakeholder 

network is represented by the circular structure of the network and the bi-directional lines emanating from each node 

to the other. In the Roxbury Network, power is centralized in the oversight committee, project review committee and 

-.%'O#S9!",'K%().9#".##/'=#!*D(2C'H.($'($'/%3#*$-"1-%/'9,'-.%' #$(-(#*'#0'-.%$%'1D-#"$'"%21-(+%'-#'-.%'#-.%"$C'H.%$%'

actors are a bridge from the community stakeholder groups to the government and corporate stakeholder groups. In 

-.($'D1 1D(-,'-.%'#+%"$().-'D#33(--%%&' "#T%D-'"%+(%F'D#33(--%%'1*/'-.%'OK='.1+%'(*R!%*D%'#*'122'#0'-.%'*%-F#"I'

1D-#"$'1$'1'D2%1"(*).#!$%'0#"'(/%1$&'G*12'/%D($(#*$&'1*/'(3 2%3%*-1-(#*'#0'$-"1-%),C'

>"# #$(-(#*'U<'>#F%"'-%*/$'-#'9%'/%D%*-"12(E%/'(*'D## %"1-(+%'$-1I%.#2/%"'*%-F#"I$&'1*/'D%*-"12(E%/'(*'(*$-"!3%*-12'

stakeholder networks. 

 !"#$!#"%&'(&)%!*'"+&,%-.!/'012/31

V%' "# #$%' -.1-' -.%' (*-%*$(-,'#0' -.%' "%21-(#*$.( $'13#*)'*%-F#"I'1D-#"$' (*R!%*D%'9%.1+(#"$'#0'#")1*(E1-(#*$'

embedded in the network. Intensity of relationship among network actors is a product of the number of relationships 

between dyads of actors and the degree to which actors in the network interact with each other. Multiplexity occurs 

when actors have two or more relationships with other network actors. There may be more than economic reasons for 

1'G"3'-#'%*-%"'1' 1"-*%"$.( C'H.%'3#"%'-, %$'#0'"%21-(#*$.( $'1D-#"$'1"%'(*+#2+%/'(*&'-.%'.().%"'-.%'D#$-'#0'9%.1+(*)'

!*%-.(D122,'56"1$$&'6!--%"G%2/&'W'JI1))$&':??ABC'X!"-.%"3#"%&'.1+(*)'3!2-( 2%'"%21-(#*$.( $'"%(*0#"D%$'-.%'$-"%*)-.'

#0'-(%$'13#*)'#-.%"'$-1I%.#2/%"' 1"-*%"$'58!$-%/&':??UBC'

Y!2-( 2%S(-,<'Actors in the Barrio Logan stakeholder network interact with each for reasons other than the 

realization of the redevelopment plan. Business owners interact with residents as customers and employees as well as 

3%39%"$'#0'-.%' 21**(*)'D#33(--%%C'K#*L "#G-'#")1*(E1-(#*$'(*-%"1D-'F(-.'9!$(*%$$%$'1$' 1-"#*$'1*/'D2(%*-$'1$'F%22'

as members of the planning committee. Multiple relationships with stakeholder actors increases the importance of 

that relationship, as harm to the relationship in one context - the planning project - could harm the relationship in other 

contexts, as customers, employees, or clients. The increased complexity of the relationships discourages unethical 

-"%1-3%*-' #0' #-.%"' *%-F#"I' 1D-#"$C'ZDD#"/(*)' -#' [%**(*)$' 5Q;;UB' 1'  #(*-' #0' D#*-%*-(#*'F1$' -.%' #*%'/(3%*$(#*12'

\!12(-,'#0'"%21-(#*$.( $'13#*)'1D-#"$'(*'-.%'O#S9!",'$-1I%.#2/%"'*%-F#"IC'X#"'%S13 2%&'"%$(/%*-$'D#3 21(*%/'-.1-'-.%'

city provided incentives to encourage large businesses to move in that did not offer jobs that residents could compete 

for with their current level of education and skills. As a result large business stakeholders saw the relationship with 

"%$(/%*-$'1$'1'3%1*$'5#"' #$$(92,&'#9$-1D2%B'-#'-.%("'/%+%2# 3%*-'%*/$'(*$-%1/'#0'1$'1'"(D.'(*-%"1D-(#*'-.1-' "#+(/%/'

a context for multiple relationships. Lack of interest on the part of large business was noted by their absence in 

D#33!*(-,'1*/'*%().9#".##/'3%%-(*)$'5[%**(*)$&'Q;;UBC'O%12'%$-1-%'/%+%2# %"$' !$.%/' "#T%D-$'0#"'.#!$(*)'-.1-'

current residents could not afford and commercial projects that would push leases to rents that current small business 

owners could not afford. In this manner Roxbury relationships with Roxbury residents and small business owners 

were only sought as it related to redevelopment. 

>"# #$(-(#*']<'O%21-(#*$.( $'(*'D## %"1-(+%'*%-F#"I$'1"%'3#"%'2(I%2,'-#'9%'3!2-(L/(3%*$(#*12'-.1*'"%21-(#*$.( $'

in instrumental networks. 

^%*$(-,<''^%*$(-,'($'1'$#D(12'*%-F#"I'3%1$!"%'-.1-'(/%*-(G%$'-.%'/%)"%%'-#'F.(D.'3%39%"$'#0'1'*%-F#"I'(*-%"1D-'

with each other. A dense network is characterized by strong ties among all its members. A network is dense to the 

degree that all actors have relationships with each other. A network is sparse if actors are not well connected with 

each other. High levels of interconnectedness among stakeholder partners reduce the need for costly legal forms 

of network governance. Instead the high level of density in the stakeholder network creates a macro-culture where 

stakeholder partners have similar values, norms, and thus experience a relationship characterized by high levels 

#0'-"!$-'5[#*%$&'8%$-%"2,&'W'6#")1--(&':??@BC'^%*$(-,'(*D"%1$%$'-.%'2%+%2'#0'-"!$-'1$'I*#F2%/)%'#0'#-.%"'$-1I%.#2/%"'

partners which comes through interactions with them, increases the amount of information, and reduces the amount 

2010, Vol. 1, No. 1, 176-187

Hill and Frankforter



185

Advances in Business Research

#0'139()!(-,'"%)1"/(*)'-.%'$-1I%.#2/%"' 1"-*%"_$'9%.1+(#"'56!"-'W'`*%E&':??]BC'P*%-.(D12'9%.1+(#"'($'3#$-'2(I%2,'-#'

#DD!"'F.%"%'"%21-(#*$.( $'1"%'19$%*-'13#*)'3%39%"$'56"1$$'%-'12C&':??ABC'

Density ensures monitoring because members are passively informed about the activity of other members 

-."#!).'-.%("'"#!-(*%'(*-%"1D-(#*$C'N*'-.%'%+%*-'#0'!*%-.(D12'9%.1+(#"'#*'-.%' 1"-'#0'1'3%39%"&'#-.%"'3%39%"$'\!(DI2,'

2%1"*'19#!-' -.%'9"%1D.'9%D1!$%'#0' 0"%\!%*-' (*-%"1D-(#*$C'^%*$%'*%-F#"I$' "#/!D%' $-"#*)'D#*$-"1(*-$'#*' -.%' 0#D12'

#")1*(E1-(#*_$' 1D-(#*$' 9%D1!$%' 1$' 2(*I1)%$' 3!2-( 2,&' D#33!*(D1-(#*' D"#$$' -.%' *%-F#"I' 9%D#3%$' 3#"%' %0GD(%*-'

5O#F2%,&':??@BC'Z'D#*$%\!%*D%'#0' -.($' ($' -.%'-"1*$0%"'#0'G*%L)"1(*%/'(*0#"31-(#*C'Z$'1'"%$!2-&' -.%'*%%/'0#"'#+%"-'

monitoring to ensure compliance with agreed-upon actions ebbs away. 

While information about stakeholder partners is increased through higher density, high levels of interconnectedness 

12$#' "%$%*-' "#92%3$'0#"'-.%'R#F'1*/'1DD!"1D,'#0'(*0#"31-(#*'13#*)'$-1I%.#2/%"' 1"-*%"$C'6!"-'W'`*%E'5:??]B'

contend that information about a network member is attenuated by the other members of the network. That is, a 

$-1I%.#2/%"_$' %"D% -(#*'#0'1*#-.%"'$-1I%.#2/%"' 1"-*%"'($'(*R!%*D%/'9,'-.%' %"D% -(#*'#0'#-.%"'$-1I%.#2/%"'*%-F#"I'

3%39%"$C'a#$$( ' #$(-(+%2,'#"'*%)1-(+%2,'(*R!%*D%$'-.%'1$$%$$3%*-'#0'1'$-1I%.#2/%"'*%-F#"I'3%39%"C'8().'2%+%2$'

#0'/%*$(-,'31I%'-.%'9%.1+(#"'#0'$-1I%.#2/%"' 1"-*%"$'3#"%'-"1*$ 1"%*-&'31I(*)'(-'3#"%'/(0GD!2-'-#'D#*D%12'!*%-.(D12'

behavior. Unethical behavior in a dense network leads to strict sanctions, loss of legitimacy among other stakeholder 

network members, and even expulsion from the network. Density is important in the stakeholder network because 

it provides information about the behavior of partnered stakeholders, decreasing the probability of opportunistic 

behavior. 

N*' /%*$%' $-"!D-!"%$&' *#"3$' 1"%' /(00!$%/' 1D"#$$' -.%' *%-F#"I' 5Y%,%"' W' O#F1*&' :?@@b' M2(+%"&' :??:BC' ^%*$(-,'

(*D"%1$%$'D#*$-"1(*-$C'N-'12$#'31I%$'(-'/(0GD!2-'0#"'#")1*(E1-(#*$'-#'D#*D%12'(*0#"31-(#*C'N*D"%1$(*)'/%*$(-,'2%1/$'-#'

1*'(*D"%1$%'(*'-.%'*!39%"'#0'(*-%"L#")1*(E1-(#*12'2(*I1)%$&'2%1/(*)'-#')"%1-%"'D#33!*(D1-(#*'%0GD(%*D,C'

>"# #$(-(#*'c<'=## %"1-(+%'$-1I%.#2/%"'*%-F#"I$'1"%'D.1"1D-%"(E%/'9,'.().'/%*$(-,'#0'"%21-(#*$.( $'13#*)'1D-#"$&'

instrumental stakeholder networks are characterized by low density of relationships among actors. 

45)467 85) 

=!""%*-' D#*D% -!12(E1-(#*$' #0' 31*1)(*)' "%21-(#*$.( $' 13#*)' $-1I%.#2/%"$' /#' *#-' 0!22,' (*-%)"1-%' -.%#"%-(D12'

insights regarding the importance of social context in driving socially responsible behavior. An application of 

network theory to the stakeholder model advances current thinking by providing a dynamic framework explaining 

01D-#"$' -.1-'D#*-"(9!-%' -#'.#F'#")1*(E1-(#*_$'/%G*%'1'$-"1-%),'-#'1--%*/(*)'-#'$-1I%.#2/%"'*%%/$C'H.($'1  2(D1-(#*'

of network theory to the stakeholder model incorporates insight from the rich body of research conducted in both 

literatures. Building from this rich tradition, we have provided a framework that describes the process of forging 

1*/'31(*-1(*(*)'"%21-(#*$.( $'-.1-'(*R!%*D%'F.%-.%"'#"'*#-'$-1I%.#2/%"$'F(22'F#"I'-#)%-.%"'-#'3%%-'-.%("'(*/(+(/!12'

*%%/$C' H.%' $-1I%.#2/%"' *%-F#"I' 1//"%$$%$' -.%#"%-(D12' ($$!%$' #0' .#F' $-1I%.#2/%"'  1"-*%"$' 1"%' (/%*-(G%/&' F.1-'

"%21-(#*$.( $'1D-#"$'%*)1)%'(*'1*/'.#F'-.%'$-"!D-!"%'#0'-.#$%'"%21-(#*$.( $'(*R!%*D%$'-.%'$-"1-%)(%$'-.1-'1"%'!$%/'-#'

address stakeholder concerns as well as the likelihood that stakeholder partners will behave opportunistically. 

=## %"1-(+%'*%-F#"I$'%*T#,'1//%/'%0GD(%*D,'1*/'%00%D-(+%*%$$C'[#*%$'5:??]B'1")!%$'-.1-'2#*)L-%"3'"%21-(#*$.( $'

with stakeholders will outperform competitive arrangements. The examples of urban redevelopment projects 

presented in this paper demonstrate that mutual adjustment occurs as stakeholders develop complex multi-

/(3%*$(#*12'"%21-(#*$.( $'-.1-'%*D#!"1)%'9121*D%'#0' #F%"&'-"!$-&'+12!%'D#*)"!%*D,&'1*/'0"%\!%*-'(*-%"1D-(#*$C'M!"'

model attempts to describe how organization’s behavior is shaped under conditions of cooperation in the cooperative 

stakeholder network and opportunism in instrumental stakeholder networks. Additionally, it examines the impacts 

of stakeholder attributes, relationships and network structure simultaneously. The primary limitation of this model 

is that it is limited to description of boundary conditions, networks that are primarily cooperative and those that 

are primarily instrumental. Many networks will be hybrids exhibiting elements of both. Within a network that is 

 "(31"(2,'(*$-"!3%*-12&'-.%"%'31,'9%' #DI%-$'#0'D## %"1-(#*'13#*)'1D-#"$'F.#'-"!$-'%1D.'#-.%"&'1"%'%\!12'(*' #F%"&'

$.1"%'  "(*D( 2%$&' "%)1"/' %1D.' #-.%"'F%22&' 1*/' (*-%"1D-'F(-.' %1D.' #-.%"' 0"%\!%*-2,C'=#*+%"$%2,'F(-.(*' D## %"1-(+%'

*%-F#"I$'-.%"%'31,'9%' #DI%-$'#0'#  #"-!*($3'13#*)'1D-#"$'F.#'/#*_-'-"!$-'%1D.'#-.%"&'!*%\!12'(*' #F%"&'/#*_-'

$.1"%'#"'1DI*#F2%/)%' "(*D( 2%$&'-.(*I' ##"2,'#0'%1D.'#-.%"'1*/'(*-%"1D-'F(-.'%1D.'#-.%"'(*0"%\!%*-2,C'M!"'3#/%2'($'

less helpful in describing how organizations behave under these conditions. 

We suggest four areas for future research. First, to test the propositions proposed in this paper, a case study of 

two urban development projects should be used to illustrate the propositions proposed here. An empirical test of the 

propositions would yield more insight. Second, to continue to advance stakeholder typologies that offer predictive 

+12!%C' H.("/&' -#' D#*-(*!%' -.%' /%+%2# 3%*-' #0' 3#/%2$' -.1-' 0!"-.%"' "%G*%$' 1*' 1*12,$($' #0' "%21-(#*$.( $' 9%-F%%*'

corporation and stakeholders. And last, to undertake the ambitious task of formulating a workable stakeholder theory 

#0'-.%'G"3C'

2010, Vol. 1, No. 1, 176-187

Hill and Frankforter



186

Advances in Business Research

,9:9,9)49 

61""(#'7#)1*'81"9#"':;:<'Community planC':?@AC'N*'>C'^% 1"-3%*-'5d/CB&'=(-,'#0'J1*'^(%)#<'=ZC

;.""/'& 6'<.0& 4'==#0/!>& ?-.0& 73@.!%A& B!!.$2=%0!& BC' Y1"D.&' Q;;?C' .-- <eeFFFC$1*/(%)#C)#+e 21**(*)e'

91""(#2#)1*! /1-%e'$-1I%.#2/%"e /0e$-1I%.#2/%"$D#3 #$(-(#*G*12C /0

;.""/'&6'<.0&/0& .0&C/%<'C'Q;;;C'.-- <ee.($-#",C$1*/(%)#C%/!eadKe "#T%D-$e:@Ae91""(#2#)1*;;C.-3

6"1$$&'^C&'6!--%"G%2/&'`C&'W'JI1))$&'6C':??AC'O%21-(#*$.( $'1*/'!*%-.(D12'9%.1+(#"<'Z'$#D(12'*%-F#"I' %"$ %D-(+%C'

Academy of Management Review&'Qf<':ULf:C

Burt, R., & Knez, M. 1995. Kinds of third-party effects on trust. Rationality and Society&'@<'Q]]LQ?QC

^%2)1/#&'`C':??AC'Z'H!"*(*)' #(*-<'H.%'D#*D% -(#*'1*/' "%12(E1-(#*'#0'=.(D1*#'>1"IC'D2%&E'#"0.-&'(& .0&C/%<'&

F/1!'">&'UU<':QC

^"($D#22&'=C&'W'J-1"(I&'YC'Q;;UC'H.%' "(3#"/(12'$-1I%.#2/%"<'Z/+1*D(*)'-.%'D#*D% -!12'D#*$(/%"1-(#*'#0'$-1I%.#2/%"'

status for the natural environment. E'#"0.-&'(&;#1/0%11&9!2/$1&'U?<']]L@fC

9?BC'K#+%39%"':?&'Q;;AC'61""(#'7#)1*&'J1*'^(%)#&'=ZC'J31"-'a"#F-.'N22!$-"1-%/C

Freeman, R. 1984.  !".!%</$&=.0.<%=%0!A&B&1!.+%2'-@%"&.33"'.$2C'd*)2%F##/'=2(00$<'>"%*-(D%L8122C

a(22&'8C&'6#(%$&'`C&'X(*%)1*&'[C&'W'YDK122,&'[C'Q;;]C'Z*-%D%/%*-$'#0'-"!$-<'d$-192($.(*)'1'9#!*/1",'D#*/(-(#*'0#"'-.%'

relation between propensity to trust and intention to trust. Journal of Business and Psychology&':?<'QA@Lf;QC

8!$-%/&'6C' :??UC'H"1*$1D-(#*' D#$-$&' *#"3$&' 1*/' $#D(12' *%-F#"I$<'Z' "%2(3(*1",' $-!/,'#0' D## %"1-(#*' (*' (*/!$-"(12'

buyer-seller relationships in the United States and Mexico. ;#1/0%11&G& '$/%!>&'ff<'f;L]AC

Jennings, J. 2004. Urban planning, community participation, and the Roxbury master plan in Boston. The Annuls of 

the American Academy of Political and Social ScienceC']?U<':QLffC

[#*%$&'=C&'8%$-%"2,&'VC&'W'6#")1--(&'JC':??@C'Z')%*%"12'-.%#",'#0'*%-F#"I')#+%"*1*D%<'dSD.1*)%'D#*/(-(#*$'1*/'$#D(12'

mechanisms. Academy of Management Review&'QQ<'?::L?UcC

[#*%$&'HC':??]C' N*$-"!3%*-12'$-1I%.#2/%"' -.%#",<'Z'$,*-.%$($'#0'%-.(D$'1*/'%D#*#3(D$C'Academy of Management 

Review&'Q;<'U;ULUf@C

`*#I%&'^C':??AC'V.#'$-%12$'3,' !"$%'$-%12$'-"1$.<'H.%'$-"!D-!"%'#0'#")1*(E1-(#*12'(*R!%*D%'"% !-1-(#*C'Journal of 

Theoretical Politics&':;<'];@L]f;C

71"$%*&' ZC' :??QC' K%-F#"I' /,1/$' (*' %*-"% "%*%!"(12' $%--(*)$<' Z' $-!/,' #0' )#+%"*1*D%' %SD.1*)%' "%21-(#*$.( $C'

Administrative Science Quarterly&'ff<'fU]Lfc?C

7%F(DI(&' OC&' YDZ22($-%"&' ^C&' W' 6(%$&' OC' :??AC' H"!$-' 1*/' /($-"!$-<' K%F' "%21-(#*$.( $' 1*/' "%12(-(%$C'Academy of 

Management Review&'Qf<'UfALU]@C

Markovsky, B., Willer, D., & Patton, T. 1988. Power relations in exchange networks. American Sociological Review, 

]f<'QQ;LQfcC

Maurer, J. 1971. ,%.@/0<1&/0&'"<.0/H.!/'0.-&!2%'">A&53%0&1>1!%=&.33"'.$2%1C'K%F'g#"I<'O1*/#3'8#!$%C

Mayer, R., Davis, J., & Schoorman, F. 1995. An integrative model of organizational trust. Academy of Management 

Review&'Q;<'@;?L@fUC

Y%,%"&'[C&'W'O#F1*&'6C':?@@C'N*$-(-!-(#*12(E%/'#")1*(E1-(#*$<'X#"312'$-"!D-!"%'1$'3,-.'1*/'D%"%3#*,C'American 

Journal of Sociology&'Af<'fU;LfcfC

2010, Vol. 1, No. 1, 176-187

Hill and Frankforter



187

Advances in Business Research

Y(-D.%22&'OC&'Z)2%&'6C&'W'V##/&'^C':??@C'H#F1"/'1'-.%#",'#0'$-1I%.#2/%"'(/%*-(GD1-(#*'1*/'$12(%*D%<'^%G*(*)'-.%'

principle of who and what really counts. Academy of Management Review&'QQ<'A]fLAAcC

K%+(22%&'6C&'W'Y%*)!D&'6C' Q;;cC' J-1I%.#2/%"'Y!2-( 2(D(-,<'H#F1"/' 1*' !*/%"$-1*/(*)' #0' -.%' (*-%"1D-(#*$' 9%-F%%*'

stakeholders. E'#"0.-&'(&;#1/0%11&9!2/$1&'cc<'f@@Lf?:C'

M2(+%"&'=C':??:C'J-"1-%)(D'"%$ #*$%$'-#'(*$-(-!-(#*12' "#D%$$%$C'Academy of Management Review&':c<':U]L:@?C

Parsons, T. 1960. Structure and processes in modern societiesC'K%F'g#"I<'V(2%,C

Pfeffer, J., & Salancik, G. 1978. D2%&%I!%"0.-&$'0!"'-&'(&'"<.0/H.!/'01A&B&"%1'#"$%&@%3%0@%0$%&3%"13%$!/J%. New 

g#"I<'81" %"'W'O#FC

>.(22( $&' OC' :??AC' K#"31-(+%' $-1I%.#2/%"' -.%#",<' H#F1"/' 1' D#*D% -(#*' #0' $-1I%.#2/%"' 2%)(-(31D,C' Academy of 

Management Proceedings, D1-D6.

Podolny, J., & Page, K. 1998. Network forms of organization. Annual Review of Sociology&'QU<']@L@@C

Quinn, D., & Jones, T. 1995. An agent morality view of business policy. Academy of Management Review,  

Q;<'QQLUQC

O#F2%,&'HC':??@C'Y#+(*)'9%,#*/'/,1/(D'-(%$<'Z'*%-F#"I'-.%#",'#0'$-1I%.#2/%"'(*R!%*D%$C'Academy of Management 

Review&'QQ<'AA@L?:;C

O#F2%,&'HC&'W'Y#2/#+%1*!&'YC'Q;;fC'V.%*'F(22'$-1I%.#2/%"')"#! $'1D-h'Z*'(*-%"%$-L'1*/'(/%*-(-,L91$%/'3#/%2'#0'

stakeholder group mobilization. Academy of Management Review&'QA<'Q;ULQ:?C

J!D.31*&'YC':??]C'Y1*1)(*)'2%)(-(31D,<'J-"1-%)(D'1*/'(*$-(-!-(#*12'1  "#1D.%$C'Academy of Management Review, 

Q;<']@:Lc:;C

PEE(&'6C':??@C'J#D(12'$-"!D-!"%'1*/'D#3 %-(-(#*'(*'(*-%"G"3'*%-F#"I$<'-.%' 1"1/#S'#0'%39%//%/*%$$C'Administrative 

Science Quarterly&'UQ<'f]LcAC

V(DI$&'ZC&'6%"31*&'JC&'W'[#*%$&'HC':???C'H.%'$-"!D-!"%'#0'# -(312'-"!$-<'Y#"12'1*/'$-"1-%)(D'(3 2(D1-(#*$C'Academy 

of Management Review&'QU<'??L::cC'

K.0%11.&F/--&is an assistant professor of management at the University of Louisiana, Lafayette. She holds the J.J. 

6!"/(*&'YC^C'W'8%2%*'6C'6!"/(*'56MOJXB' "#0%$$#"$.( '#0' "#0%$$(#*12'%-.(D$C'J.%'"%D%(+%/'.%"'>.C^C'0"#3'=1"*%)(%'

Mellon University. Her research interests include corporate social responsibility, ethical leadership, organizational 

culture, and workplace diversity.

Steven Frankforter is a professor of management at Winthrop University. He received his PhD at the University 

of Washington. He has taught business policy, business & society, entrepreneurship, and accounting. His research 

(*-%"%$-$'1"%'(*'$-%F1"/$.( '-.%#",&'$-1I%.#2/%"'31*1)%3%*-&'3%")%"$'1*/'1D\!($(-(#*$&'%3#-(#*12'(*-%22()%*D%&'1*/'

diversity management.  

2010, Vol. 1, No. 1, 176-187

Hill and Frankforter


