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%,+?%:" ('?.:,&="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 #$%"!%#-+(.!/"'"(%,'#.+!)$.?"-.#$"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++?%('#.>%")#'<%$+,:%("!%#-+(%,+?1%!#"#+".,,9)#('#%"#$%"A++?%('#.>%")#'<%$+,:%(" !%#-+(%,+?1%!#"?(+a%A#)"-+9,:"*'>+("'"A++?%('#.>%")#'<%$+,:%(" !%#-+(%)^"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%,/#%$#*&+#',*%!.%C!D;-$<%!$2:'&G#+%:'+% !;;&#+%.!$%?:$,&(&?:,&!'%&'% the planning process for the redevelopment of Roxbury. Unlike Barrio Logan, recognition of Roxbury residents as a stakeholder constituency is involuntary and as a result of contractual obligations. The Roxbury development process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opportunistic stakeholder networks. First, legitimacy motivates stakeholders to forge and maintain relationships with other members of a stakeholder network. Second, reputation is perceptual and is attributed to organizations the stakeholders interact with. Legitimacy and reputation are important because they encourage relationships to develop and endure among network actors. B#2&,&):(3%OSTK78 9-(/):'3% 0OSSY7% +&*,&'2-&*/#*% ;#,"##'% ,"!% ,3%OSTK78%9,$:,#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:'%]! *̂%_#'#$: %J :'8%P/& #%#H#$<%'#&2/;!$/!!+%/:*%,/#% E#D&;& &,<% ,!% &+#',&.<%:'+%+#F'#%:%+#H# !?)#',%? :'%,!%:++$#**% ,/#%-'&Q-#%(!'(#$'*%!.%#:(/%'#&2/;!$/!!+3%#H#$<% '#&2/;!$/!!+% +#H# !?)#',% ?$!W#(,% &'% 9:'% ]!% &*% 2-&+#+% ;<% ,/#% 9,$:,#2&(% N$:)#"!$>% \!$#% :̀ -#*% +#F'#+% &'% Actors Corresponding abbreviation Boston Redevelopment Authority Boston Redevelopment Authority Mayor Mayor Oversite Committee Oversite Committee Project Review Committee Project Review Committee Roxbury Neighborhood Council Roxbury Neighborhood Council Merchant Association Merchants Tenant Organizations Tenants Religious Organizations Religious Organizations Human Service Organizations Human Services Neighborhood Organizations Neighborhood Organizations Corporations Corporations 2010, Vol. 1, No. 1, 176-187 Hill and Frankforter 181 Advances in Business Research 9:'%]! *̂%2#'#$: %? :'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#$#<%*,:>#/! +#$*%$#*- ,#+% 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%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%)#);#$*% :$#% (/!*#'% ;<% :% ?!?- :$% H!,#8%gH#$#/! +#$%'#,"!$>*%,/:,%:$#%(/:$:(,#$&G#+%;<% !"% #H# *%!.%,$-*,%$#Q-&$#%.!$): &G#+%?$!(#**#*%:'+% 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/#%):#/! +#$%'#,"!$>*%:'+% !"%,$-*,%"& % 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!!.$2=%0!& BC' Y1"D.&' Q;;?C' .-- 1"IC'D2%&E'#"0.-&'(& .0&C/%<'& F/1!'">&'UU<':QC ^"($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. !".!%"%*-(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